The Corporate Affairs Commission (CAC) has issued a six-week notice to unregistered businesses operating in Nigeria, warning them to register with the Commission or face prosecution and potential jail terms. This development comes in the wake of the collapse of the CBEX cryptocurrency investment scheme, which defrauded Nigerians of approximately N1.3 trillion.
According to the CAC, carrying on business in Nigeria without registration is a criminal offense under Section 863 of the Companies and Allied Matters Act, 2020. The Commission emphasized that operating under an unregistered name or acronym is also an offense. Registered companies are required to display their registered name and registration number at every business location and on official publications.
The CAC warned that non-compliance with business registration requirements may result in prosecution and conviction, carrying a penalty of up to two years' imprisonment. The Commission stressed that all companies, limited liability partnerships, limited partnerships, and business name proprietors must comply with the provisions of the Act within six weeks of the notice.
Failure to comply will result in enforcement actions, including prosecution. Stakeholders are advised to visit the CAC website for updates. This move is part of the Commission's efforts to enforce compliance and protect the public from fraudulent activities.
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