CAC Issues 6-Week Ultimatum to Unregistered Businesses: Register or Face Prosecution

• The Corporate Affairs Commission (CAC) has issued a six-week notice to unregistered businesses to register with the Commission or face prosecution and possible jail terms.

• The CAC emphasised that carrying on business in Nigeria without registration is a criminal offense under the Companies and Allied Matters Act, 2020.

The Corporate Affairs Commission (CAC) has given unregistered businesses a six-week notice to register with the Commission or face prosecution and possible jail terms.

In a statement titled “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM,” the CAC emphasized that carrying on business in Nigeria without registration is a criminal offense under the Companies and Allied Matters Act, 2020.

The CAC stated, “It is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020, to carry on business in Nigeria as a company, limited liability partnership, limited partnership, or under a business name without registration.”

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The Commission also emphasized that operating under a name or acronym other than the one registered under the Act is also an offense.

The CAC warned that non-compliance may result in prosecution and a conviction that carries a penalty of up to two years’ imprisonment.

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The Commission added, “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, 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 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.

Failure to comply will result in enforcement actions, including prosecution. Stakeholders are advised to visit the CAC website for updates.