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The Corporate Affairs Commission (CAC) has issued a 60-day ultimatum for all unregistered Point of Sale (PoS) businesses in Nigeria to formalize their operations. This directive, initially announced on July 7, 2024, required compliance by September 5, 2024. However, due to low compliance rates, the CAC extended the deadline by an additional 60 days, setting the new deadline for November 4, 2024.
In 2025, unregistered businesses to register with the Commission or face jail term prosecution.
In a statement issued by the CAC on Tuesday, titled: “Public notice carrying on business in Nigeria under unregistered name or a acronym”
This is coming on the instance of the fraudulent cryptocurrency investment scheme known as “CBEX,” which defrauded Nigerians of approximately N1.3 trillion.
The statement informed 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.
It is also an offence to operate under a name (or acronym) other than the one registered under the Act.
The public was further advised that Section 729 of the Act requires every registered company to display its registered name and registration number at every business location.
“In addition, the company is required to state its registered name and registration number on all its official publications, including letterheads, signage, marketing, and publicity materials,” the statement added.
The CAC emphasized that non-compliance with business registration requirements may result in prosecution and a conviction that carries a penalty of up to two years’ imprisonment.
The statement continued: “In particular, the general public should note the provisions of Section 862 (1) of the Act, which state that any person who, in any document required under the Act (including the aforementioned official publications of a company), knowingly makes a false statement in any material respect commits an offence and is liable on conviction to imprisonment for a term of two years, in addition to a daily fine imposed on the company for every day the offence continues.”
According to the statement, the CAC stresses that all companies, limited liability partnerships, limited partnerships, and business name proprietors must comply with the provisions of the Act within six (6) weeks of this notice.
Failure to comply will result in enforcement actions, including prosecution, the CAC stressed.
In a statement released on Monday, the EFCC had noted that although ST Technologies (not CBEX) is registered with SCUML in accordance with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022, this does not authorize it to offer investment services.
The House of Representatives had warned public figures, celebrities, and influencers against promoting unregistered investment platforms in the wake of CBEX’s collapse.
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