The Corporate Affairs Commission (CAC) has announced a six-week ultimatum for unregistered businesses to complete their registration with the Commission.
This was revealed in a statement issued by the CAC on Tuesday, titled: “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM.”
The CAC warned that failure to comply with this directive will result in prosecution or a potential jail term.
The Commission highlighted that under Section 863 of the Companies and Allied Matters Act, 2020, it is a criminal offence to operate a business in Nigeria as a company, limited liability partnership, limited partnership, or under a business name without proper registration. Additionally, it is illegal to conduct business using a name or acronym not registered under the Act.
The public was also reminded of Section 729, which mandates all registered companies to display their registered name and registration number at their business premises.
“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 noted.
The CAC further cautioned that non-compliance with registration requirements could lead to prosecution, with penalties of up to two years’ imprisonment.
The statement elaborated: “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.”
The CAC reiterated that all companies, limited liability partnerships, limited partnerships, and business name proprietors must comply with the Act’s provisions within the six-week deadline.
Failure to do so will result in enforcement actions, including prosecution, the Commission stressed.