The Corporate Affairs Commission (CAC) has warned companies and business operators in Nigeria, to comply with the Companies and Allied Matters Act (CAMA), 2020, stressing that violators risk a two-year jail term and daily fines for non-compliance.
In a public notice released yesterday, the CAC emphasized that it is a criminal offence under Section 863 of the Act to operate a business without proper registration or to use a name or acronym different from that officially registered.
“All companies, Limited Liability Partnerships, Limited Partnerships, and business name operators must operate strictly under their registered names,” the Commission stated, adding that failure to comply would result in prosecution.
Businesses are also reminded of their obligations under Section 729 to clearly display their registered name and registration number at all business premises and on official materials such as signage, letterheads, and promotional publications.
Furthermore, the Commission warned that anyone who knowingly provided false information in official documents, as outlined in Section 862(1), may face imprisonment and additional fines.
The CAC has given a six-week deadline for full compliance with these provisions, warning that enforcement actions will follow for any defaulter.
“In view of the foregoing, every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor(s) is hereby required to ensure full compliance within six (6) weeks of this notice, failing which the Commission shall take all necessary steps, including prosecution,” the notice concluded.