CAC ISSUES SIX-WEEK ULTIMATUM FOR UNREGISTERED BUSINESSES TO COMPLY OR FACE PROSECUTION. (PHOTO).

 CAC Issues Six-Week Ultimatum for Unregistered Businesses to Comply or Face Prosecution

The Corporate Affairs Commission (CAC) has issued a stern six-week ultimatum to unregistered businesses operating in Nigeria, mandating them to register with the Commission or face severe legal consequences, including imprisonment.

In a public notice titled “Carrying on Business in Nigeria Under an Unregistered Name or Acronym,” released on Tuesday, the CAC warned that operating as a company, limited liability partnership, limited partnership, or under a business name without registration is a criminal offense under Section 863 of the Companies and Allied Matters Act, 2020. Additionally, using a name or acronym other than the one registered under the Act is prohibited.

The CAC emphasized that non-compliance could lead to prosecution, with penalties including up to two years’ imprisonment. The Commission also highlighted Section 862(1) of the Act, which states that knowingly making false statements in required documents is an offense punishable by two years in prison, alongside daily fines for ongoing violations.

Furthermore, the CAC reminded registered companies of their obligation under Section 729 to display their registered name and registration number at all business locations and on official documents, including letterheads, signage, and marketing materials.

“All companies, limited liability partnerships, limited partnerships, and business name proprietors must comply with the provisions of the Act within six weeks from the date of this notice,” the statement read. The CAC vowed to enforce strict measures, including prosecution, against those who fail to meet the deadline.

The Commission urged the public to take note of these requirements to avoid legal repercussions, signaling a renewed push to ensure regulatory compliance across Nigeria’s business landscape.