Register your Business within 6 Weeks or Risk Jail… CAC warns

Share

Tweet

Share

Share

Email

Comments

BY Bonny Amadi

Business owners operating in Nigeria without proper registration have higher chances of going to jail if by the end May, they still failed to take advantage of the grace period allowed them to effect their business registration.

The Corporate Affairs Commission (CAC) on Tuesday issued a stern warning to businesses operating in Nigeria without proper registration, giving a six-week ultimatum for compliance or risk facing legal consequences.

The Commission, in a public notice, emphasised that carrying on business without registration under the Companies and Allied Matters Act (CAMA) 2020 constitutes a criminal offence.

This includes operating as a company, limited liability partnership, limited partnership, or under any business name or acronym not duly registered with the CAC. According to the Commission, Section 863 of the Act makes it an offence to use an unregistered name or acronym for business operations, while Section 862(1) imposes criminal liability for making false statements in official business documents.

Violators may face up to two years’ imprisonment and daily fines for each day the offence continues.

The notice further cites Section 729 of the Act, which mandates that all registered companies clearly display their official name and registration number at every place of business and on all company publications, signage, and marketing materials.

The CAC urged members of the public to visit its official website at www.cac.gov.ng for more details and guidance on the registration process.

The Commission reaffirmed its commitment to delivering prompt and efficient services while ensuring regulatory compliance across the country’s business landscape.

The statement read in part: “The Commission wishes to inform the general public that 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 under the Act or by a name (or acronym) other than the name (or acronym) by which the business was registered under the Act.