CAC’s New Warning: Businesses must comply or risk prosecution

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The Corporate Affairs Commission (CAC) has warned that it is a criminal offence to operate a business in Nigeria without proper registration or using a name other than the one registered under the Companies and Allied Matters Act 2020. According to the CAC, section 863 of the Act makes it an offence to carry on business without registration or under a different name.

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The CAC stated that every registered company is required to display its registered name and registration number outside every place of business, as well as on official publications, including letterheads, signage, marketing, and publicity materials. Section 729 of the Act mandates this requirement

The commission further warned that making false statements in documents, including official publications, is an offence punishable by two years’ imprisonment and daily fines. The CAC stated, “Any person who in any document required by or for the purpose of any of the provisions of the Act… makes a statement which is false in any material, particularly knowing it to be false, commits an offence.”

The CAC has given companies, limited liability partnerships, and business name proprietors six weeks to comply with the Act’s requirements, warning that failure to do so will result in necessary steps, including prosecution, to enforce compliance. The commission emphasized the importance of full compliance, stating that it will take all necessary steps to ensure adherence to the law

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