Beneficial ownership filing is a relatively new obligation, and many South African companies still do not know it applies to them.
Why it exists
South Africa introduced beneficial ownership registers as part of anti money laundering reforms, following the country’s greylisting by the Financial Action Task Force. The aim is transparency about who actually controls companies, as opposed to who appears on paper.
Who a beneficial owner is
A natural person who ultimately owns or exercises effective control over the company. That may be through shareholding, voting rights, the right to appoint directors, or control exercised by other means.
It is always a human being. Where a company is owned by another company, you trace through until you reach people.
What you must file
- Full names and identity or passport numbers
- Date of birth and nationality
- Residential address
- Nature and extent of the beneficial interest
- Supporting documents such as a securities register
When
Beneficial ownership information must be filed and kept current, and it is linked to the annual return process. Changes in ownership must be updated rather than left until the next annual cycle.
What happens if you do not file
Non-compliance can block your annual return from being processed, which in turn puts the company on the path to deregistration. Penalties and compliance notices are also possible.
For businesses bidding on tenders, a company that cannot show CIPC compliance is a company that cannot be awarded work.
Single-owner companies
If you own 100 percent of your company, you are the beneficial owner and you still have to file. Simplicity of structure does not exempt you from the obligation.
Need this filed without the admin?
Annual returns, beneficial ownership, director and address changes, registrations and reinstatements. Filed online, from R199.
General information, not legal or accounting advice. CIPC fees and requirements change. Confirm current details with CIPC before acting.