What does it mean for a company to be struck off by CAC? In Nigeria, when a company is “struck off” by the Corporate Affairs Commission (CAC), it means the company has been removed from the register of active companies. Legally, the company ceases to exist. Invariably when you search for the name of such company on the CAC portal it won’t be found.

Many Nigerian business owners don’t know this can happen until they try to open a bank account or bid for a contract and are told “Your company has been delisted.”

What happens when a company’s name is struck off by CAC?

• Your company loses legal personality meaning that it can’t sue or be sued.
• All company operations are considered illegal under the law.
• Contracts signed under the company name may become unenforceable.
• You may lose corporate assets, and directors and shareholders may be held personally liable.

Read:Company Registration (Limited Liability Company)

Why Does CAC Strike Off Company name?

Under CAMA 2020, CAC can remove your company from its register if:

1. You fail to file Annual Returns for years. This is the main reason most companies are struck off.
2. The company appears to be inactive or no longer in operation.
3. The company was registered fraudulently or using false information.
4. Voluntary strike-off application by the company (very rare).

How do you Prevent Your Company from Being Struck Off?

Here are practical steps to keep your company compliant and safe:

1. File Your Annual Returns Promptly: this is a mandatory yearly report you file with CAC, showing your company is still active. For companies it is filed within 42 days after each anniversary of incorporation and for Business Names, it is filed every year before June 30. There is Penalty for late filing which is a sum plus the actual annual return fees and the risk of strike-off.
2. Keep Your Company Records Updated: Ensure all director and shareholder changes are filed with CAC. Your registered office address is current and all resolutions (AGMs, appointments, etc.) are properly documented and filed when required.
3. Check Your Company Status Regularly: You can search your company name on the CAC portal: https://search.cac.gov.ng, If it says “INACTIVE” or “STRUCK OFF”, take immediate legal steps to restore it.
4. Avoid Dormancy: If your company isn’t doing business, file a “Notice of Dormancy” with CAC. This informs them you’re temporarily inactive — and avoids assumptions of abandonment.

Read also: Trademark Registration in Nigeria

 What do you do if your Company has already been struck off?

You can apply to CAC to have your company re-listed in their register, but this is Time-consuming, expensive and it requires court order and proof of genuine operation.

In conclusion, a company’s name being struck off can kill business opportunities, especially if the company wants to raise funds or apply for loans or bid for government or corporate contracts or open corporate bank accounts or attract foreign investors.

Protect your company, use a Corporate Lawyer or CAC Accredited Agent to file your annual returns regularly, monitor CAC updates and correct any non-compliance issues regularly.

Read: HOW TO START AN OIL AND GAS BUSINESS IN NIGERIA

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