The Corporate Affairs Commission (CAC) has issued a six-week public notice mandating all unregistered businesses operating in Nigeria to register with the Commission, warning of potential jail terms or prosecution for non-compliance
The Corporate Affairs Commission (CAC) has today issued a stern six-week notice to all businesses operating in Nigeria without proper registration to formalize their status with the Commission.
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The public notice, titled “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM,” explicitly warns that failure to comply within the stipulated timeframe will result in potential jail terms or prosecution.
The CAC emphasized that carrying on business as a company, limited liability partnership, limited partnership, or under a business name without registration is a criminal offense under Section 863 of the Companies and Allied Matters Act (CAMA), 2020.
Operating under a name or acronym different from the registered one is also a violation of the Act.
Failure to comply with the notice will attract a jail term or prosecution.” – Corporate Affairs Commission (CAC).
Furthermore, the Commission reminded registered companies of their obligation under Section 729 of CAMA 2020 to prominently display their registered name and registration number at every business location and to include this information on all official publications, including letterheads, signage, marketing, and publicity materials.
The CAC explicitly stated that non-compliance with business registration requirements can lead to prosecution and a conviction carrying a penalty of up to two years’ imprisonment.
Additionally, the Commission highlighted Section 862(1) of the Act, which stipulates a two-year jail term and a daily fine on the company for knowingly making false statements in any document required under the Act, including official publications.
In light of these legal provisions, the CAC has mandated that all affected companies, limited liability partnerships, limited partnerships, and business name proprietors must fully comply with the registration requirements within six weeks from the date of this public notice.
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The Commission stressed that failure to adhere to this directive will trigger enforcement actions, including prosecution.
