CAC Gives Businesses Six-Week Ultimatum To Comply With Registration Requirements.
The Corporate Affairs Commission (CAC) has issued a circular giving all businesses operating in Nigeria a six-week ultimatum to comply with the registration requirements of the Companies and Allied Matters Act (CAMA), 2020. The Commission warns that after the deadline, it will take necessary action against erring offenders who fail to comply.
According to the CAC, operating without proper registration or using a name or acronym different from the registered identity is a criminal offence under Section 863 of CAMA. The Commission also notes that Section 729 of the Act requires all registered entities to display their registered name and number outside every business location and on official publications.
The CAC further highlights that Section 862(1) of the Act imposes strict penalties on individuals who knowingly make false statements in any document required under the Act. Such offenders risk a two-year prison term and a daily fine for each day the infraction continues.
The Commission advises all business owners to take immediate steps to regularise their operations, warning that non-compliance will be met with swift enforcement actions. Businesses are expected to ensure they are properly registered and comply with all relevant requirements to avoid legal consequences.
The CAC’s move aims to enhance compliance and transparency in business operations in Nigeria. As the deadline approaches, businesses are expected to take necessary steps to avoid penalties and ensure smooth operations.