The Corporate Affairs Commission (CAC) has announced a six-week deadline for all unregistered businesses in Nigeria to formalise their operations or face legal consequences. The directive, issued on Tuesday, highlights the importance of compliance with the Companies and Allied Matters Act (CAMA) 2020. Failure to register within this period could result in prosecution and potential imprisonment.
The CAC’s move comes in the wake of the collapse of the fraudulent cryptocurrency investment scheme, CBEX, which defrauded Nigerians of approximately N1.3 trillion. The Economic and Financial Crimes Commission (EFCC) clarified that while ST Technologies International Limited, the promoter of CBEX, was registered with the CAC, it was not licensed by the Securities and Exchange Commission (SEC) to operate as an investment platform. This incident has prompted the CAC to intensify efforts to ensure all businesses operating in Nigeria are properly registered.
According to the CAC, operating a business in Nigeria without proper registration is a criminal offence under Section 863 of CAMA 2020. The Act stipulates that companies, limited liability partnerships, limited partnerships, or business name proprietors must register with the CAC to legally conduct business. Non-compliance can lead to prosecution and a conviction that carries a penalty of up to two years’ imprisonment.
The CAC has also highlighted the requirement under Section 729 of CAMA for every registered company to display its registered name and registration number at every business location. This includes stating the registered name and registration number on all official publications, including letterheads, signage, marketing, and publicity materials. Failure to comply with these provisions may result in further legal actions.
The collapse of CBEX has highlighted the need for stricter enforcement of business registration laws. The EFCC’s clarification that possession of a Special Control Unit Against Money Laundering (SCUML) certificate does not equate to legal authorisation to operate in Nigeria has further highlighted the importance of proper registration. The House of Representatives has also warned public figures, celebrities, and influencers against promoting unregistered investment platforms in the wake of CBEX’s collapse.
The CAC’s directive serves as a reminder to all businesses operating in Nigeria to ensure they are properly registered. The Commission has advised stakeholders to visit the CAC website at [www.cac.gov.ng](http://www.cac.gov.ng) for updates and further information. ([September 5 Deadline: CAC Goes After Unregistered PoS Operators](https://leadership.ng/september-5-deadline-cac-goes-after-unregistered-pos-operators/?utm_source=chatgpt.com))
