The Corporate Affairs Commission (CAC) has given unregistered businesses in Nigeria a six-week deadline to register with the Commission or face prosecution that could lead to imprisonment.
This was announced in a statement issued by the Commission on Tuesday titled “Public Notice: Carrying on Business in Nigeria Under an Unregistered Name or Acronym.”
According to the CAC, operating a business in Nigeria without proper registration is a criminal offence under Section 863 of the Companies and Allied Matters Act (CAMA), 2020. This includes companies, limited liability partnerships, limited partnerships, and business names.
It is also illegal to conduct business using any name or acronym not registered under the Act.
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The Commission cited Section 729 of the Act, which requires every registered business to display its name and registration number at all business locations and on all official documents.
The statement reads: “In addition, the company is required to state its registered name and registration number on all its official publications, including letterheads, signage, marketing, and publicity materials.”
Highlighting the consequences of non-compliance, the CAC warned that offenders may face legal action.
It referenced Section 862(1) of the Act, which criminalises knowingly making false statements in any required official document.
“In particular, the general public should note the provisions of Section 862(1) of the Act, which state that any person who, in any document required under the Act (including the aforementioned official publications of a company), knowingly makes a false statement in any material respect commits an offence and is liable on conviction to imprisonment for a term of two years, in addition to a daily fine imposed on the company for every day the offence continues,” the notice stated.
The Commission further emphasised, “Failure to comply with these provisions may result in prosecution and, upon conviction, a penalty of up to two years’ imprisonment.”
The CAC urged all businesses, including companies and partnerships, to comply with the law within six weeks from the date of the notice to avoid enforcement actions.
For further details and updates, stakeholders are advised to visit the Commission’s website at www.cac.gov.ng.
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