Mathew Amaechi
The Corporate Affairs Commission (CAC) has issued a strict six-week ultimatum to businesses operating under unregistered names or acronyms, warning that non-compliance could lead to prosecution and possible jail time.
In a notice titled “Public Notice: Carry on Business in Nigeria Under an Unregistered Name or Acronym” and shared via the Commission’s social media channels on Tuesday, the CAC reminded the public that it is a criminal offence to operate a business without proper registration under Nigerian law.
Citing Section 863 of the Companies and Allied Matters Act (CAMA) 2020, the notice stated that operating as a company, limited liability partnership (LLP), limited partnership, or business name without registration—or under a name different from the registered one—could attract up to two years’ imprisonment.
Further, Section 729 of the Act mandates all registered entities to clearly display their official registered name and registration number at every business location, and on all official documents such as letterheads, signage, marketing materials, and publications.
The Commission wishes to inform the general public that it is a criminal offence… to carry on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership or under a Business Name without proper registration, or by using a name different from the one registered,” the statement read.
Additionally, the CAC warned that under Section 862 (1), any individual who knowingly submits false documents or statements in the course of registration may face legal consequences, including two years’ imprisonment and daily fines for each day of non-compliance.
This warning comes in the wake of the recent collapse of the fraudulent cryptocurrency investment platform known as “CBEX,” which reportedly defrauded investors of approximately N1.3 trillion. Although the platform’s parent company, ST Technologies International Limited, was registered with the CAC, the Economic and Financial Crimes Commission (EFCC) confirmed it was never licensed by the Securities and Exchange Commission (SEC) to operate as an investment platform.
The EFCC also clarified that holding a certificate from the Special Control Unit Against Money Laundering (SCUML)—issued under the Money Laundering (Prevention and Prohibition) Act, 2022—does not equate to legal authorization for offering investment services.
Against this backdrop, the CAC is urging all business owners to regularize their operations without delay by visiting www.cac.gov.ng for guidelines.
Failure to comply with the six-week registration window will attract enforcement actions, including prosecution.This latest directive signals the Commission’s broader push to enforce regulatory compliance and improve business transparency in Nigeria. As the deadline approaches, businesses operating in legal limbo are expected to take swift corrective steps to avoid facing the full weight of the law.
