CAC Gives 6-Week Deadline For Registration Of Unregistered Businesses In Nigeria, Warns Of Jail Term
In a public notice released Tuesday, the Commission emphasised that carrying on business without registration under the Companies and Allied Matters Act (CAMA) 2020 constitutes a criminal offence.
The Corporate Affairs Commission (CAC) has issued a stern warning to businesses operating in Nigeria without proper registration, giving a six-week ultimatum for compliance or risk facing legal consequences.
In a public notice released Tuesday, the Commission emphasised that carrying on business without registration under the Companies and Allied Matters Act (CAMA) 2020 constitutes a criminal offence.
This includes operating as a company, limited liability partnership, limited partnership, or under any business name or acronym not duly registered with the CAC.
According to the Commission, Section 863 of the Act makes it an offence to use an unregistered name or acronym for business operations, while Section 862(1) imposes criminal liability for making false statements in official business documents. Violators may face up to two years’ imprisonment and daily fines for each day the offence continues.
The notice further cites Section 729 of the Act, which mandates that all registered companies clearly display their official name and registration number at every place of business and on all company publications, signage, and marketing materials.
The CAC urged members of the public to visit its official website at www.cac.gov.ng for more details and guidance on the registration process.
The Commission reaffirmed its commitment to delivering prompt and efficient services while ensuring regulatory compliance across the country’s business landscape.
The statement read in part: “The Commission wishes to inform the general public that it is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020 to carry on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership, or under a Business Name without registration under the Act or by a name (or acronym) other than the name (or acronym) by which the business was registered under the Act.
“The general public should note that Section 729 of the Act requires every company registered under the Act to state its name as registered and its registration number outside every place where it carries on business.
“In addition, the company is required to state its registered name and registration number on all its official publications, including its letterhead, signage(s), marketing, and publicity materials.
“In particular, the general public should note the provisions of Section 862(1) of the Act, which provides that any person who, in any document required by, or for the purpose of, any of the provisions of the Act (including the aforementioned official publications of a company), makes a statement that is false in any material particular, knowing it to be false, commits an offence and is liable on conviction to imprisonment for a term of two years, in addition to a daily fine against the company for every day during which the offence continues.”
“In view of the foregoing, every company, limited liability partnership, limited partnership, and business name proprietor(s) is hereby required to ensure full compliance with the above requirements of the Act within six (6) weeks of this notice, failing which the Commission shall take all necessary steps (including prosecution) to enforce compliance,” the statement added.
