By Ajibola Olaide, JKNewsMedia Reporter
A NATIONWIDE crackdown on unregistered businesses looms after Nigeria’s Corporate Affairs Commission (CAC) issued a stern six-week compliance ultimatum, warning that those operating without proper registration risk imprisonment or legal action.
CAC Cites Criminal Offences Under Companies Act. In a public notice titled “Carrying on Business in Nigeria Under an Unregistered Name or Acronym”, the CAC declared that failure to register a business contravenes Section 863 of the Companies and Allied Matters Act, 2020.
The Act prohibits individuals and organisations from operating under any company structure—be it as a company, limited liability partnership, limited partnership, or business name—without first completing official registration with the Commission.
The CAC stressed that operating under an unregistered name or acronym also falls foul of the law, and attracts similar penalties.
Further highlighting provisions of the Companies and Allied Matters Act, the Commission reminded all registered entities that they must visibly display their official business name and registration number at every operational location.
This obligation, anchored in Section 729 of the Act, also extends to all company publications, including signage, letterheads, marketing materials, and digital communications.
“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 Commission stated.
Beyond the initial offence of non-registration, the CAC issued a firm warning about the legal implications of falsifying company documents.
Citing Section 862(1) of the Act, the Commission said any individual who knowingly provides false information in company-related documents commits an offence punishable by up to two years’ imprisonment.
In addition, offending companies may face daily fines for the duration the violation continues.
The notice underscores the CAC’s renewed commitment to sanitising Nigeria’s business landscape and ensuring accountability among business owners.
The Commission concluded by directing all affected entities—including companies, limited liability partnerships, limited partnerships, and proprietors of business names—to comply with the registration requirements within six weeks of the notice.
It warned that failure to act within the stipulated timeframe will trigger enforcement actions, including prosecution.
