CAC Gives Six-Week Ultimatum to Unregistered Businesses

By Adedapo Adesanya

The Corporate Affairs Commission (CAC) has given all unregistered businesses in Nigeria to register within six weeks or risk jail term.

In a statement on Tuesday titled Public Notice: Carrying on Business in Nigeria Under an Unregistered Name or Acronym, the agency threatened to prosecute those who fail to register their businesses within the stipulated period.

The commission informed 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 the country as a company, limited liability partnership, limited partnership, or under a business name without registration.

It is also an offence to operate under a name (or acronym) other than the one registered under the Act, it warned, emphasising that Section 729 of the Act requires every registered company to display its registered name and registration number at every business location.

“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,” the statement added.

The CAC stressed that non-compliance with business registration requirements may result in prosecution and a conviction that carries a penalty of up to two years’ imprisonment.

“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,” it stated.

The CAC stressed that all companies, limited liability partnerships, limited partnerships, and business name proprietors must comply with the provisions of the Act within six weeks of this notice, adding that failure to comply will result in enforcement actions, including prosecution.