Financial Crime World

PNG Incorporated Companies Face Compliance Dilemma: Balancing Requirements with Regulatory Obligations

Papua New Guinea (PNG) incorporated companies are facing a complex challenge in complying with regulatory requirements as the country’s business landscape continues to evolve.

The Compliance Conundrum

According to experts, companies must adhere to a range of obligations under the Companies Act 1997 and Companies Regulations 1998. However, the sheer volume of paperwork and documentation can be overwhelming for company directors.

Regulatory Requirements

Some of the key regulatory requirements for PNG incorporated companies include:

  • Lodging company forms with the Registrar of Companies
  • Maintaining a share register and keeping certain documents at the registered office, including:
    • Minutes of meetings
    • Resolutions
    • Financial statements
  • Holding an annual meeting once in each calendar year, within six months of the balance date, and no later than 15 months after the previous meeting
  • Lodging an annual return within 14 days of the annual meeting

Consequences of Non-Compliance

Experts warn that failure to comply with these obligations can have serious consequences for company directors, including personal liability.

Seeking Guidance

For companies seeking guidance, a copy of the company forms can be downloaded from the Investment Promotion Authority website (www.ipa.gov.pg/). Payments can also be made by bank cheque or direct deposit.

Conclusion

Compliance is key to success in Papua New Guinea. Companies that fail to meet their regulatory obligations risk facing fines, penalties, and even deregistration. It’s essential that companies take compliance seriously and ensure they are meeting their regulatory requirements to protect their directors from personal liability and maintain a smooth and efficient business operation.

Call to Action

  • Download company forms from the Investment Promotion Authority website
  • Pay fees by bank cheque or direct deposit
  • Ensure compliance with regulatory requirements to avoid serious consequences