Have you ever imagine how risky it is to give your hard earned money to a stranger in trust all in the name of daily contribution without knowing the location of their office or even if you know the location of the office, the business is not registered with Corporate Affairs Commission, it does not have the capacity to sue and be sued if something happens and they are nowhere to be found. All your money will be gone.

Dealing with unregistered entities can present several disadvantages:

1. Lack of Legal Protection: If disputes arise, you may have limited legal recourse since the entity is not recognized by the law. Which basically means that it does not have capacity to sue or be sued.
2.  Fraud Risk: Unregistered entities are more likely to engage in fraudulent activities as they are not subject to regulatory oversight. Associating with unregistered entities can harm your reputation, particularly if the entity is involved in unethical or illegal activities. Transactions with unregistered entities can be riskier, potentially leading to financial losses if the entity defaults or disappears. Working with unregistered entities can lead to non-compliance with local laws and regulations, potentially resulting in fines and other penalties.
3. Lack of Transparency: Unregistered entities often lack transparency in their operations, making it difficult to assess their credibility and stability.
4. Difficulty in Enforcing Contracts: Enforcing agreements and contracts with unregistered entities can be challenging, as they may not be bound by the same legal standards as registered entities.
5. Insurance Issues: Many insurance companies do not cover transactions with unregistered entities, leaving you unprotected in case of a loss.
6. Quality Control: Without regulatory oversight, the quality of goods or services provided by unregistered entities may be inconsistent or substandard.
7.  Limited Recourse for Intellectual Property Theft: If an unregistered entity infringes on your intellectual property, seeking legal recourse can be more difficult.
8. Lack of Accountability: Unregistered entities may not have the same accountability mechanisms in place, making it harder to hold them responsible for their actions.