When CAC “strikes off” your company, it simply means your business name or incorporated company is removed from the official register of active businesses in Nigeria. What Does It Mean When CAC Strikes Off a Company
Practically, this means:
- Your company loses its legal status.
- You cannot legally do business under that company name.
- Your contracts, bank accounts, and agreements may become invalid.
- You may face legal or financial penalties if you continue operating.
Think of it like being “blacklisted”, the company still exists in reality, but in the eyes of the law, it’s no longer recognized.
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⚖️ Reasons Why CAC Strikes Off Companies in Nigeria
Here are the main reasons:
- Failure to File Annual Returns
Many business owners think once they’ve registered, they’re done. But CAC requires you to file annual returns to confirm your business is still active. If you fail to do this for several years, CAC can strike you off. - Dormant or Inactive Companies
If your company hasn’t been doing business for a long period, CAC may remove it from the register to keep its database clean. - Non-Compliance with Regulations
Businesses that ignore CAC notices, fail to update their records (e.g., changes in directors, shareholding, or address), or operate illegally risk being struck off. - Court Orders or Fraudulent Activities
If your company is linked to fraud, illegal dealings, or a court directs it, CAC can cancel the registration.
A Quick Case Study:
Let’s take Chioma’s fashion business.
Chioma registered “Chichi Styles Ltd” with CAC in 2019. Business was booming, but she didn’t bother to file her annual returns for 3 years.
One day, she tried to open a corporate account to secure a loan. The bank officer searched CAC’s portal and found her company had been struck off.
Result?
- She lost credibility with the bank.
- She had to pay penalties, restore the company, and re-file returns.
- She missed out on a funding opportunity that could have grown her brand.
This could happen to any Nigerian business owner who ignores CAC compliance.
How to Avoid Your Company Being Struck Off
- File your annual returns every year (even if your company didn’t make a profit).
- Keep your company records updated with CAC.
- Respond promptly to CAC notices.
- Hire a compliance consultant (like Rexobe Consult ) to manage your filings.
Conclusion:
Having your company struck off by the CAC is not just an inconvenience; it can ruin your business reputation, lead to lost deals, and cost you more in penalties than it would have to stay compliant.
The good news? You can always restore a struck-off company, but it’s cheaper and easier to stay compliant from the beginning.
At Rexobe Consult, we help Nigerian business owners stay compliant with CAC requirements, from annual returns to corporate filings.
Need help filing your annual returns or checking your CAC status? Contact us today.
