CAC’s Six-Week Business Registration Deadline: Compliance, Process, and Implications
ABUJA, Nigeria – April 29, 2025
The Corporate Affairs Commission (CAC) has issued a six-week compliance deadline for all unregistered businesses in Nigeria, warning of prosecution, fines, and imprisonment under the Companies and Allied Matters Act (CAMA) 2020. The directive follows the collapse of the CBEX cryptocurrency scheme, which defrauded Nigerians of over ₦1.3 trillion, exposing regulatory gaps in business oversight.
Key Directives and Legal Penalties
- Deadline: Unregistered businesses must comply by mid-June 2025.
- Legal Offences:
- Section 863 (CAMA 2020): Operating an unregistered business name, company, or partnership risks two years’ imprisonment and daily fines.
- Section 729: Businesses must display registration numbers prominently at all locations and on publications.
- Scope: Applies to sole proprietorships, partnerships, and companies, including online ventures and informal enterprises.
Registration Process and Requirements
- Name Availability Check:
- Use the CAC online portal (www.cac.gov.ng) to verify name uniqueness.
- Submit two proposed names to avoid delays.
- Documentation:
- Pre-registration form (CAC-BNo1) with business details.
- Upload government-issued ID (NIN, passport) and passport photograph.
- Payment:
- Fees: ₦700 (name reservation) + ₦11,000 (registration) + bank charges (totaling ~₦11,700).
- Methods: Online via debit card (recommended) or bank transfer.
- Verification:
- Use the CAC public search portal (www.cac.gov.ng) to confirm registration status post-approval
Context: CBEX Scandal and Regulatory Crackdown
The CBEX cryptocurrency platform, operated by ST Technologies International Limited, collapsed in early 2025 after defrauding investors. While registered with the CAC, it lacked approval from the Securities and Exchange Commission (SEC) to offer investment services. The scam highlighted the need for stricter compliance to prevent fraud and protect investors.
Stakeholder Reactions and Compliance Challenges
- CAC Statement: “Non-compliance will result in prosecution and closure of operations”.
- Entrepreneurs: Concerns over rushed compliance, but acknowledgment of long-term benefits like access to loans, grants, and government contracts.
- Legal Experts: Warn that many small businesses, especially in rural areas, lack awareness of the deadline and digital tools for compliance.
Step-by-Step Guides and Resources
- YouTube Tutorials: Detailed CAC registration walkthroughs, including document uploads and fee payments5.
- Assistance: Platforms like Oluboba and ICA.ng offer registration support, charging additional fees for error-free submissions.
- Post-Registration: Businesses must file annual returns by June 30, 2025, or face ₦5,000 penalties for late submissions.
