The Corporate Affairs Commission (CAC) has issued a six-week ultimatum to unregistered businesses to register with the Commission or risk a jail term or prosecution of up to two years imprisonment. This was disclosed in a statement issued by the CAC on Tuesday, titled: “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM.”
The Commission informed the general public that carrying on business in Nigeria as a company, limited liability partnership, or limited partnership without registration is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020.
It is an offence to operate under a name (or acronym) other than the one registered under the Act.
The public was further advised that Section ‘729’ of the Act requires every registered company to display its registered name and registration number at every 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 CAC emphasised that non-compliance with business registration requirements may result in prosecution and a conviction or penalty of up to two years’ imprisonment.
“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.”
