The Corporate Affairs Commission (CAC) has issued a six-week ultimatum to all unregistered businesses operating in Nigeria, urging them to register formally or face legal consequences.
This directive was made public on Tuesday through a statement titled “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM.”
In the notice, the CAC warned that defaulters risk either jail time or legal prosecution if they fail to act within the specified period.
The Commission reminded business operators and the general public that conducting business as a company, limited liability partnership, limited partnership, or under a business name without registration constitutes a criminal offence.
This is in accordance with Section 863 of the Companies and Allied Matters Act (CAMA), 2020. Furthermore, operating with any name or acronym different from the registered one is also considered unlawful under the Act.
The statement also drew attention to Section 729 of the Act, which mandates all registered entities to visibly display their registered business name and registration number at each 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 highlighted that non-compliance could lead to criminal prosecution, with convictions potentially attracting imprisonment of up to two years.
The Commission further stated: “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.”
Based on this, the Commission strongly advised all business owners, including limited liability partnerships, limited partnerships, and proprietors of business names, to ensure full compliance with the law within six weeks from the date of the notice.
It warned that failure to register within the stipulated time would trigger enforcement actions, including prosecution.
