In a renewed effort to enforce compliance with Nigeria’s business regulation, the Federal Government through the Corporate Affairs Commission (CAC) has announced plans to prosecute business owners operating without proper registration, warning that legal action will be taken against defaulters.
The Commission stated that carrying on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership, or under a Business Name without registration under the Companies and Allied Matters Act, 2020, constitutes a criminal offence.
It further warned that businesses operating under names or acronyms different from those registered with the CAC also violate the Act and would face legal consequences.
The Commission reminded business owners that Section 729 of the Act mandates all registered entities to display their registered name and number at every place of business and on all official publications, including signage, letterheads, and promotional materials.
In a public notice released on Tuesday, CAC stressed that all affected businesses must ensure full compliance within the six-week window or face enforcement actions in line with the law.
According to the statement, ” 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.
“The General Public should note that Section 729 of the Act requires every Company registered under the Act to state its name as registered and its registration number outside every place where it carries on business, In addition, the Company is required to state its registered name and registration number on all its official publications, including its letterhead, signage(1), marketing and publicity materials.
“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 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
“In view of the foregoing, every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor(s) is hereby required to ensure full compliance with the above requirements of the Act within six (6) weeks of this notice falling which the Commission shall take all necessary steps (including prosecution) to enforce compliance,” it concluded.
