CAC To Arrest Business Owners Operating Without Registration, Announces Deadline
- The Corporate Affairs Commission (CAC) has asked business owners in Nigeria to register or face arrest and prosecution
- The commission noted that it is unlawful under the Companies and Allied Matters Act (CAMA) 2020 for anyone to operate a business without registration
- Business owners violating the law now have six weeks to comply or risk imprisonment and daily fines
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Corporate Affairs Commission (CAC) has announced plans to clamp down on individuals and businesses operating in Nigeria without proper registration.
The commission warned that violators risk arrest and prosecution if they fail to comply within six weeks.
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In a public notice issued on Tuesday, April 29, 2025, via X, the commission stated that carrying on business without registering under the Companies and Allied Matters Act (CAMA) 2020 is a criminal offence punishable under Section 863 of the Act.
It noted that the law applies to companies, limited liability partnerships, limited partnerships, and business names using unregistered names or acronyms.
Part of the notice reads:
"The Commission wishes to inform the General Public that it is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020 to carry on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership or under a Business Name without registration under the Act or by a name (or acronym) other than the name (or acronym) by which the business was registered under the Act.
The General Public should note that Section 729 of the Act requires every Company registered under the Act to state its name as registered and its registration number outside every place where it carries on business.
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CAC also demanded that companies state their registered name and registration number on all their official publications.
The statement stated:
"Company is required to state its registered name and registration number on all its official publications, including its letterhead, signage(s), marketing and publicity materials.
"In particular, the General Public should note the provisions 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 provisions of the Act (including the aforementioned official publications of a Company), makes a statement which is false in any material particular knowing it to be false, commits an offence and is liable on conviction to imprisonment for a term of two years in addition to a daily fine against the Company for every day during which the offence continues."
The commission urged all business operators to regularise their registration status within six weeks from the date of the notice, adding that enforcement actions will follow the expiration of the grace period.
"In view of the foregoing, every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor(s) is hereby required to ensure full compliance with the above requirements of the Act within six (6) weeks of this notice failing which the Commission shall take all necessary steps (including prosecution) to enforce compliance."
CAC PoS operators
Earlier, Legit.ng reported that the CAC announced its intention to begin taking stringent actions, including the possible shutdown of Point of Sale (PoS) businesses, following the expiration of its registration deadline.
The decision was prompted by widespread non-compliance with the CAC’s registration directives.
Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) took the CAC to court over the directive.
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Source: Legit.ng
