Unregistered businesses face jail, fines after six weeks — CAC
Corporate Affairs Commission (CAC)
Abdullateef Fowewe
The Corporate Affairs Commission (CAC) has announced a six-week deadline for all unregistered businesses in Nigeria to register or risk prosecution and imprisonment.
The commission in a statement issued on Tuesday, by its management said under Section 863 of the Companies and Allied Matters Act (CAMA) 2020, it is a criminal offence to operate any business entity-company, limited liability partnership, limited partnership, or business name-without proper registration or under an unregistered name or acronym.
The statement highlights, “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. It is also an offence to operate under a name (or acronym) other than the one registered under the Act.”
The commission further noted that Section 729 of the Act mandates every registered company to display its registered name and registration number at all business locations and on all official publications.
“In particular, the General Public should note the provisions of Section 862 (1) of the Act which provides that any person who, in any document required by, or for the purpose of any of the provisions of the Act (including the aforementioned official publications of a Company), makes a statement which is false in any material particular knowing it to be false, commits an offence and is liable on conviction to imprisonment for a term of two years in addition to a daily fine against the Company for every day during which the offence continues,” the statement established.
However, the commission urged Every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor to ensure full compliance with the above requirements of the Act within six weeks of the notice, stressing that the Commission will take necessary steps including prosecution to anyone who fails to comply.
