CAC issues six-week deadline for Business registration or faces jail term

The Corporate Affairs Commission (CAC) has set a six-week deadline for unregistered businesses operating in Nigeria to complete their registration, warning that failure to do so could result in legal action, including imprisonment.

The announcement was made in a public statement issued by the commission on Tuesday, titled: “PUBLIC NOTICE: CARRYING ON BUSINESS IN NIGERIA UNDER AN UNREGISTERED NAME OR ACRONYM.”

The CAC stated that businesses which fail to comply with the directive risk facing prosecution or imprisonment. The commission emphasised that, under Section 863 of the Companies and Allied Matters Act (CAMA) 2020, it is a criminal offence for individuals or organisations to conduct business in Nigeria as a company, limited liability partnership, limited partnership, or business name without proper registration. It also issued a warning against operating under an unregistered name or acronym.

The CAC further reminded registered businesses that Section 729 of the Act requires them to display their registered name and registration number at every place of business. This information must also be included on official documents such as letterheads, advertisements, signage, and marketing materials.

Additionally, the statement highlighted that any company or individual who knowingly provides false information in official documents is committing an offence under Section 862(1) of the Act, which is punishable by up to two years in prison, as well as a daily fine for each day the offence continues.

With this notice, the CAC is urging all business operators, whether companies, partnerships, or sole proprietors, to ensure they meet the registration requirements within the next six weeks to avoid potential enforcement actions, including prosecution.