CAC Issues Six-Week Ultimatum For Registration Of Unregistered Businesses
THECONSCIENCE NG reports that the Corporate Affairs Commission (CAC) has issued a six-week ultimatum to all unregistered businesses in Nigeria, urging them to formalize their operations with the Commission or face legal consequences.
This directive was contained in a public notice released on Tuesday, titled: “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM.”
According to the statement, it is a criminal offence under Section 863 of the Companies and Allied Matters Act (CAMA), 2020, to operate a business—whether as a company, limited liability partnership, limited partnership, or under a business name—without proper registration. It is also unlawful to conduct business under a name or acronym that is not duly registered under the Act.
The CAC warned that failure to comply within the stipulated six-week period will attract enforcement measures, including prosecution and potential imprisonment.
The Commission also reminded registered businesses of their obligations under Section 729 of the Act, which mandates the public display of a company’s registered name and registration number at all business locations. This information must also appear on official documents, letterheads, signage, marketing, and publicity materials.
The statement further highlighted Section 862(1) of the Act, which criminalizes knowingly making false statements in any official documents or company publications. Offenders risk a conviction that could lead to a two-year jail term, in addition to a daily fine for each day the offence continues.
The CAC concluded by urging all companies, partnerships, and business proprietors to comply with the provisions of the Act within the six-week window, warning that failure to do so would lead to strict enforcement actions, including prosecution.
