The general public has been cautioned by the Corporate Affairs Commission (CAC) not to register or open firms that they do not intend to operate right away.
The counsel was provided by Mr. Justine Nidia, Director of Compliance at CAC, during a Sunday interview with the News Agency of Nigeria (NAN).
According to Nidia, the commission discourages people from registering businesses if they haven’t come up with a viable business concept.
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“Registering a company and keeping it in your briefcase is not advisable because that is detrimental to the economy,” he stated.
The director claims that these businesses are referred to as shelf companies and are not encouraged to be listed in the CAC company registration.
The rationale behind delisting companies is to avoid giving the impression that we support shelf enterprises.
“By shelf firms, we indicate inactive or redundant registered businesses. They’re not taking any action.
Thus, they are exempt from being listed on the company registration. Removing them or striking them off the register is the proper course of action, Nidia stated.
He claimed that the first list of roughly 100,000 entities to be delisted had been released by the commission.
“Those who believe they will remain in business have passed the initial 90 days to complete yearly returns in order to avoid being delisted.
Approximately 5,000 corporations filed their annual returns following the first publication, and the remaining approximately 95,000 companies were delisted.
We recently released a second publication in which we asked businesses whose names were still on the list but who had submitted their returns to contact us with supporting documentation.
Therefore, if a company files its return already, we do not delist it. Thus, we have granted an extra month, following which we will publish the final list through gazette,” Nidia stated.
(NAN)