Beneficial Ownership
Register at CIPC

The following entity types are required to file Beneficial Ownership information, if applicable:

• Profit companies
• Non-profit companies
• External companies
• Close Corporations
• Trusts

Beneficial ownership registration made simple for companies and trusts, call us toll free today!

Companies are required to update their beneficial ownership information in the register whenever there are changes to the details of the beneficial owners, within atleast 10 days. This ensures that the register is always current and reflects the true ownership structure.

In South Africa, transparency in business operations is paramount. Registering your beneficial ownership with the CIPC not only ensures you’re adhering to local regulations but also builds trust with stakeholders. It’s a proactive step that showcases your commitment to ethical business practices and positions you favourably in the market.

Also learn more about the latest updates to the Central Supplier Database requirements regarding Beneficial Ownership in 2024.

Starting on the right foot is essential. By understanding and registering your BO details early on, you’re setting a foundation of transparency and compliance. It’s not just about avoiding penalties; it’s about establishing a reputation of trustworthiness from the outset, which can be invaluable as your business grows.

You can read more about beneficial ownership at CIPC in our detailed explaination here.

At Company Partners, we believe in making complex processes straightforward. Our team of experts will guide you through the intricacies of BO, ensuring you’re not only compliant but also confident in your understanding. From initial registration to any necessary updates, we’re your dedicated partner in navigating this essential aspect of business in South Africa.

Indeed, there are. South African regulations are stringent about BO, and non-compliance can lead to substantial fines. But it’s not just about avoiding penalties; accurate registration ensures you’re operating with integrity, which can have long-term benefits for your business reputation and relationships.

BO in trusts can be a bit complex. Essentially, they refer to situations where one individual or entity holds assets on behalf of another. It’s a way to manage and protect assets, but like all forms of ownership, it’s crucial that these trusts are transparent and correctly registered to ensure all parties involved are protected and compliant.

‘beneficial owner’, in respect of the provisions of a trust instrument, means—

• a natural person who directly or indirectly ultimately owns the relevant trust property;
• a natural person who exercises effective control of the administra- tion of the trust arrangements that are established pursuant to a trust instrument.

To obtain a beneficial ownership certificate, you  need to submit information and documentation regarding beneficial owners to the CIPC in South Africa. The official step-by-step guide on how to get your beneficial ownership certificate can be found here.

As of 1 July 2024, the Companies and Intellectual Property Commission (CIPC) mandates all South African companies and close corporations to submit a Beneficial Ownership Declaration alongside their Annual Returns.

This requirement aims to ensure transparency and prevent financial misconduct, aligning with the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act.

You can read more about the above here: CIPC Beneficial Ownership and Annual Returns.

Certain holdings are exempt from being declared under beneficial ownership regulations. These include:

1. Ownership below the threshold: Beneficial owners with less than 5% ownership in a company are not required to be declared in South Africa.
2. Intermediary structures: If the structure is not controlled or influenced by a natural person, it may not need to be reported.
3. Publicly listed companies: Shareholders of publicly listed companies on stock exchanges with sufficient transparency standards are typically exempt from disclosure.

If you’re unsure whether your structure qualifies for exemption, Company Partners can assist with clarity and compliance.

• Ownership refers to the legal holding of shares or rights in a company. This will be captured / recorded in a company’s shareholders agreement. This means the person or entity officially listed as the shareholder or owner in the share register. 
• Beneficial ownership goes beyond legal ownership and identifies the natural person(s) who ultimately enjoy the benefits or control of the company. Beneficial owners can influence decisions, even if their names don’t appear in the share register.

For instance, if a trust owns shares in a company, the trustee is the legal owner, but the trust beneficiaries may be the beneficial owners.

All companies registered in South Africa are required to submit beneficial ownership information to the Companies and Intellectual Property Commission (CIPC). This includes:

1. Companies registered before 24 May 2023: They must file beneficial ownership details as part of their annual returns.
2. Newly registered companies: These must report their beneficial ownership information at the time of incorporation.

Updates to the beneficial ownership register must be submitted within five business days of any changes. Non-compliance can result in fines or sanctions.

At Company Partners, we simplify the process, ensuring you meet all CIPC requirements accurately and on time.