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In a renewed initiative to uphold compliance with Nigeria’s business regulations, the Federal Government, via the Corporate Affairs Commission (CAC), has declared intentions to prosecute business owners who operate without proper registration, warning that legal measures will be initiated against offenders.
The Commission pointed out that conducting business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership, or under a Business Name without registration in accordance with the Companies and Allied Matters Act, 2020, is a criminal offense.
Additionally, it cautioned that businesses using names or acronyms different from those registered with the CAC also breach the Act and may face legal repercussions.
The Commission reminded business proprietors that Section 729 of the Act requires all registered entities to exhibit their registered name and number at all business locations and on all official documents, including signage, letterheads, and marketing materials.
In a public announcement issued on Tuesday, the CAC emphasized that all affected businesses must ensure complete compliance within a six-week timeframe or risk enforcement actions as stipulated by law.
The statement highlighted that it is a criminal offense under Section 863 of the Companies and Allied Matters Act, 2020 to operate as a Company, Limited Liability Partnership, Limited Partnership, or Business Name in Nigeria without proper registration under the Act, or under any name (or acronym) other than the one registered.
The public is reminded that Section 729 of the Act mandates that every registered Company displays its registered name and registration number at all places of business. Furthermore, the Company must reflect its registered name and registration number on all official documents, including letterheads, signage, and promotional materials.
Particularly, the public should take note of Section 862 (1) of the Act, which stipulates that any individual who, in any document required by or for any provisions of the Act (including the previously mentioned official publications of a Company), makes a materially false statement knowing it to be false commits an offense and is liable, upon conviction, to imprisonment for two years, in addition to a daily fine imposed on the Company for each day the offense persists.
In light of the above, every Company, Limited Liability Partnership, Limited Partnership, and Business Name owner is hereby required to ensure full compliance with the stated requirements of the Act within six (6) weeks of this notice, failing which the Commission will take all necessary actions (including legal action) to enforce compliance.
