The Corporate Affairs Commission (CAC) has issued a six-week ultimatum for unregistered businesses to formalize their operations or face legal consequences, including possible imprisonment.
This directive was contained in a public notice titled “Carrying on Business in Nigeria Under an Unregistered Name or Acronym,” released on Tuesday. The announcement follows the collapse of the CBEX cryptocurrency scheme, which allegedly defrauded Nigerians of around N1.3 trillion. Although the company behind CBEX, ST Technologies International Limited, was registered with the CAC, it lacked licensing from the Securities and Exchange Commission to operate as an investment firm.
According to the CAC, operating a business in Nigeria without proper registration is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020. The law also prohibits the use of any name or acronym not officially registered. Registered entities must display their business name and registration number at all operational sites and include them on letterheads, signage, marketing, and other official materials, as stipulated in Section 729.
The Commission warned that non-compliance could attract penalties, including up to two years in prison. It also cited Section 862(1), which criminalizes false statements in official documents, noting such actions may lead to additional sanctions, including daily fines.
The CAC emphasized the need for businesses, including companies, limited liability partnerships, limited partnerships, and sole proprietors, to comply within the given timeframe or risk prosecution. Stakeholders are encouraged to consult the CAC’s official website for further guidance.
Source : https://nairametrics.com/
