Cessation of Business Operations in Nigeria – How to Properly Close or Deregister Your BN, Limited Company, or Incorporated Trustee

Shutting down a business is just as important as setting it up. Whether you operate a Business Name (BN), a Limited Liability Company (LLC/LTD), or an Incorporated Trustee (NGO/Association), the Corporate Affairs Commission (CAC) requires you to formally notify them when the organisation ceases operations.

Properly filing cessation documents protects you from:

• Future tax liabilities

• Regulatory penalties

• Illegal use of your business identity

• Claims tied to a business you no longer operate

Our service ensures your closure process is handled cleanly, legally, and fully compliant.

What Is Cessation of Business?

Cessation of business is the official process of notifying the CAC that your business or organisation has stopped operating. This may be voluntary or due to insolvency, restructuring, or inactivity.

Once approved, CAC updates its public database and marks the entity as “ceased” or “inactive,” preventing future obligations.

Who Can Apply for Cessation?

1. Business Names (BN)

Owners may apply when:

• The business has stopped operations

• The owner wants to avoid annual return fines

• A new company structure replaces the BN

2. Limited Companies (LLC/LTD)

Cessation may be required when:

• The company becomes insolvent

• Directors mutually agree to close

• A merger or restructuring occurs

• Operations stop permanently

Note: Companies may require additional steps such as liquidation reports.

3. Incorporated Trustees (NGOs, Churches, Associations)

Trustees may file cessation when:

• The organisation is inactive

• It is merging with another NGO

• Funding has stopped

• Trustees decide to dissolve the association

Documents Required for Cessation (According to CAC Requirements)

For Business Name (BN)

• Letter of application stating cessation

• Valid means of identification of proprietor(s)

• Evidence of filing up-to-date annual returns

• Affidavit (sometimes required)

For Limited Liability Company (LLC/LTD)

• Board resolution approving cessation/dissolution

• Statement of affairs

• Liquidator’s report (if applicable)

• Updated annual returns

• CAC application for dissolution/cessation

For Incorporated Trustees

• Resolution by the Board of Trustees

• Meeting minutes approving dissolution

• Updated annual filings

• Evidence of publication (if required)

• Application letter to CAC

We guide you through every required document, prepare them where needed, and submit your filings professionally.

Why File Cessation Properly?

Filing cessation with CAC ensures:

• ✔ No future tax obligations tied to an inactive entity

• ✔ Protection from penalties for failure to file annual returns

• ✔ Your business name cannot be used without permission

• ✔ Your organisation is legally closed and removed from active records

• ✔ You avoid being flagged for non-compliance by regulatory bodies

Skipping the process can lead to fines and complications in future business registrations.

Our Cessation Filing Service Includes:

• Preparation of all required documents

• Drafting of board resolutions or trustee resolutions

• Filing cessation on the CAC portal

• Following up until approval is granted

• Handling additional steps such as liquidation (for companies)

• Providing post-cessation compliance advice

We ensure the closure process is stress-free and legally sound.

When Should You File a Cessation Notice?

You should notify CAC when your organisation:

• Has stopped operations for more than 6 months

• Cannot continue due to financial difficulty

• Has rebranded into another entity

• Has merged or been acquired

• No longer serves its intended purpose

Frequently Asked Questions (FAQ)

1. What happens if I don't file cessation with CAC?

You may continue to accumulate annual return penalties and appear non-compliant in CAC public records.

2. Can a business name be restored after cessation?

Yes, but only through a formal CAC restoration process.

3. Do I need a lawyer or consultant to file?

Not mandatory—but highly recommended due to documentation and procedural steps.

4. How long does the cessation process take?

Typically 1–4 weeks, depending on the entity type and documentation accuracy.

5. Can NGOs file cessation?

Yes. Incorporated Trustees can formally dissolve through CAC.

Close Your Business the Right Way — Let Us Handle It

Properly closing a business protects you legally and financially.
We can manage the entire CAC cessation filing for:

• Business Names

• Limited Liability Companies

• Incorporated Trustees (NGOs/Associations)