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Understanding Beneficial Ownership in South Africa

As of April 1, 2023, South African companies have been mandated to report their beneficial ownership to the CIPC.


Here's what you need to know:


1. Mandatory Requirement for Annual Returns:

Companies must now include their Beneficial Ownership information when filing their Annual Returns at the CIPC. This rule came into effect on December 11, 2023, as outlined in Notice 67 of 2023 by the CIPC.


2. Why it Matters: 

Failure to comply may lead to the deregistration of your company. Ensuring your Beneficial Ownership information is up-to-date safeguards your business against such risks. This requirement will gradually become mandatory for all annual return submissions, with full implementation set for April 1, 2024.


3. Understanding the Legalities:

The amendments to the Companies Act 71 of 2008, effective from April 1, 2023, require companies to maintain a register of beneficial owners and submit this information to the CIPC regularly. These measures aim to combat money laundering,financial crimes, and safeguard corporate integrity.


4. Who Needs to Report Beneficial Ownership:

The following company types must file beneficial ownership information with the CIPC:

  • Private Companies (PTY)

  • Close Corporations (CC)

  • Non-Profit Companies (NPC)

  • State-Owned Companies (SOC)

  • Personal Liability Companies (PLC)

  • Public Companies (LTD)

However, Primary Co-Operatives (co-op) are exempt from this requirement.


5. Understanding Beneficial Ownership:

Beneficial ownership registration is a legal mandate aimed at disclosing individuals who hold more than a specified percentage of a company’s shares or voting rights. This initiative, overseen by the CIPC, aims to enhance corporate transparency and prevent financial fraud.


6. Who Are Beneficial Owners:

Beneficial owners are individuals who directly or indirectly own or control a company, typically shareholders or members holding a 5% or more beneficial interest. The register maintained by the CIPC helps prevent financial fraud by ensuring transparency about the true owners of a company.


7. Filing Deadlines:

The original deadline for filing beneficial ownership was October 1, 2023, but it has been revised. Now, companies must submit this information within 30 days of their anniversary date or within 10 days of incorporation for new registrations.


8. Consequences of Non-Compliance:

Failure to comply with filing requirements may result in administrative fines or even deregistration.


How We Can Help:

Our team specializes in assisting companies with Beneficial Ownership registration at minimal cost. We handle the process efficiently, ensuring compliance with all legal requirements.


Required Documents for Filing:

  1. Certified ID/Passports of beneficial owners

  2. Company/CC documents

  3. Share certificates/shareholding percentage

  4. Directors' residential addresses

  5. Directors' contact details

Once filed, we will send you the disclosure certificate from CIPC.


All information listed above must be emailed to info@hmaccounting.online

Turnaround time: 1-3 working days


Contact Us.

For all your company compliance, accounting, and tax service needs, reach out to us on any of the following channels:


Whatsapp : click here

For a Quotation : Click here

To book your free Business Finance Consultation : Click here


Ensuring compliance with Beneficial Ownership requirements is crucial for safeguarding your business in South Africa's evolving regulatory landscape. Let us simplify the process for you.


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