The Corporate Affairs Commission (CAC) has announced a six-week ultimatum for all businesses operating in Nigeria without official registration to comply with regulatory requirements or risk facing legal consequences.
This directive was issued in a public notice released on Tuesday, titled: “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM.”
In the notice, the Commission warned that non-compliance will be treated as a criminal offence and could lead to prosecution or imprisonment.
According to the CAC, conducting business as a company, limited liability partnership, limited partnership, or under a business name without due registration violates Section 863 of the Companies and Allied Matters Act, 2020. The same applies to those operating under an unregistered name or acronym.
The notice also reiterated that, in accordance with Section 729 of the Act, all registered entities must prominently display their registered name and registration number at all their places of business.
“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 further warned that failure to register may result in legal action and potential conviction, which could lead to up to two years in prison.
The statement continued: “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.”
In view of the legal provisions, the Commission stressed that all companies, partnerships, and business name holders are expected to meet the requirements of the law within six weeks of the issuance of the notice.
The CAC concluded by stating that any entity failing to act within this period will be subject to enforcement measures, including prosecution.
