The Corporate Affairs Commission (CAC) has issued a six-week ultimatum to companies, limited liability partnerships, and business owners operating under unregistered names to regularize their status or face enforcement action, including prosecution.
In a statement released on Tuesday, the Commission emphasized that failure to comply with the registration requirements under the Companies and Allied Matters Act (CAMA), 2020, constitutes a criminal offence.
“The commission wishes to inform the general public that it’s 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 CAC stated.
Okay.ng reports that the Commission further warned that registered companies must also comply with specific disclosure requirements under the Act.
According to the notice: “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.”
The CAC added that companies must clearly display their registered name and number on all official documents, including letterheads, signage, marketing, and publicity materials.
The Commission also highlighted the penalties for making false statements in company documents.
“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 the purpose of 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,” the statement read.
“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 failing which the Commission shall take all necessary steps (including prosecution) to enforce compliance.”
