The Corporate Affairs Commission (CAC) has issued a stern six-week ultimatum to all unregistered businesses in Nigeria, warning that failure to register will attract prosecution and potential imprisonment.
In a public notice titled *“Carrying On Business in Nigeria Under an Unregistered Name or Acronym,”* the Commission reminded business operators that running a business without proper registration is a criminal offense under the Companies and Allied Matters Act (CAMA) 2020.
“It is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020, to operate as a company, limited liability partnership, limited partnership, or business name without registration,” the CAC stated.
The Commission further cautioned that operating under any name or acronym not duly registered with the CAC is equally unlawful.
Non-compliance, the Commission warned, could lead to prosecution and a conviction that carries up to two years’ imprisonment. Additionally, offenders may face daily fines for each day the violation persists.
Highlighting Section 862(1) of the Act, the CAC emphasized that any person who knowingly makes a false statement in any required document under the Act commits an offence punishable by up to two years in prison.
“All companies, LLPs, LPs, and business name proprietors must ensure compliance with the provisions of the Act within six weeks of this notice,” the CAC stressed.
Failure to comply will trigger enforcement actions, including legal proceedings. Business operators and stakeholders are urged to visit the CAC website for further details and updates.
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