CAC Announces Plan to Strike Off Inactive Companies
Details of the Notice
The notice highlights the CAC’s commitment to maintaining an accurate and up-to-date database of registered companies in Nigeria. As part of this initiative, the CAC has published a list of at-risk companies on its website, www.cac.gov.ng. These companies have 90 days from the publication date to comply with CAC regulations by filing all outstanding annual returns.
Failure to take these steps within the specified 90-day period will result in the company’s dissolution and it is illegal to carry in business under the name of a delisted company is illegal because the entity is no longer legally recognized
Steps for Affected Companies
To avoid being struck off the register, affected companies should:
- File Outstanding Annual Returns: Submit all pending returns to demonstrate continued operation and regulatory compliance.
- Notify the CAC: After filing the returns, send an email to activation@cac.gov.ng to confirm the filing and request removal from the strike-off list.
Companies must act within the 90-day period to avoid dissolution and the loss of legal status. Operating under the name of a delisted company is illegal.
Striking a company off the register eliminates its legal existence. This action triggers severe legal and operational consequences.
When a company loses its legal status, it cannot engage in contracts, such as leasing office space or signing new client agreements. It also can’t initiate lawsuits or be sued, which means it cannot defend itself in legal disputes or claim damages. Additionally, the government may seize the company’s assets, including property and funds, like company-owned buildings or money in business accounts.
As a result, the company can no longer conduct business activities under its name.
Ensuring Compliance and Avoiding Strike-Off
It is crucial for companies to act fast to meet CAC requirements and avoid the legal implications. Moreover, in addition to maintaining the integrity of Nigeria’s business environment, these steps also significantly enhance the reputation of companies in Nigeria, therefore, staying up to date with annual returns ensures that companies remain in good standing and signals reliability and commitment to stakeholders.
By being proactive, businesses can secure their future and contribute to a more robust and transparent corporate landscape in Nigeria.
How Mycornerlink Can Help?
MycornerLink specializes in helping businesses stay compliant with CAC regulations. Our expert team will assess your company’s filing history and handle outstanding annual returns to keep your business in good standing. Partner with us to streamline your compliance process and avoid potential penalties.
Final Thoughts
The CAC is updating its records. This is a big deal! It is a clear sign that all businesses must stay on top of their paperwork. To avoid legal trouble or even losing your business, make sure you are filing and updating your information regularly.
Are you ready to get started? Contact us today!
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