The Corporate Affairs Commission (CAC) has revealed that starting a business in Nigeria without registration remains a crime punishable by law.
The commission recently said that it is a federal offence under section 863 of the Compliance and Allied Matters Act 2020 to set up any kind of business in the country without registering it with CAC.
In a recent press statement signed by the Corporate Affairs Commission management, CAC revealed that Nigerians should be aware of section 729 of the Act, which states how mandatory it is for Nigerian companies to always state their name (as registered) and registration number wherever the business is located.
According to the commission, all registered names and registration numbers must also be stated clearly on every company’s official publications, including letterhead, signage, marketing and publicity materials.
CAC disclosed that it is very important to note that any company found guilty of falsifying any statement in its materials will be committing an offence that can lead to imprisonment for 2 years in addition to a mandatory daily fine.
“The company is required to state its registered name and registration number on all its official publications including it’s letterhead, it’s signage, marketing and publicity materials.
In particular the general public should note the provision of section 862 (1) of the Act which provides that any person who in any document required by or for the purpose of any of the provision of the Act including the aforementioned official publication of a company makes a statement which is false in any material particularly knowing it to be false, commits an offence and liable on conviction to imprisonment for a term of two years in addition to a daily fine against the company every day during which the offence continues,” it read.
The commission added that all companies across the country should ensure they comply with the above requirements of the Act within six weeks of their notice, else, CAC will have every right to take all necessary steps, including prosecution, to ensure compliance.
