Please feel free to contact our offices if after reading this article, you are still unsure as to whether you or your child will qualify as a beneficial owner. You can mail your query to admin@axiaconsulting.co.za
What is a beneficial owner?
The first step in this process is understanding what a beneficial owner of a company is. According to the CIPC (Companies and Intellectual Properties Commission), a beneficial owner is someone who directly or indirectly owns part of a company or exercises effective control over a company even if they don’t officially own part of that company.
The CIPC implemented a beneficial ownership register from 1 April 2023. At the time it was on a voluntary basis. As of 24 May 2023, the filing of beneficial ownership and securities/beneficial interest registers became mandatory. This was upon the promulgation of the Amended Companies Regulations to give full effect to the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022.
There will be enforcement of beneficial ownership filings and securities registers effective from 01 October 2023.
Why the need for a Beneficial Ownership Register?
The potential anonymous ownership of a company leaves the door wide open for money laundering and tax evasion and other financial crimes as individuals ‘hide’ behind companies. Even though companies are seen as legal entities, it is important to know who the people are that are pulling the strings of the company to avoid these financial crimes taking place.
Beneficial ownership registers can be very useful to help authorities prevent, detect, and counter financial crime.
So how do you know for sure that you are a beneficial owner of a Company? Well, if you fit into any of the categories below then you are a beneficial owner and need to register with the CIPC.
Types of beneficial ownership / effective control:
Anyone with more than 5% beneficial ownership of a company or close corporation must capture their beneficial ownership details on the CIPC website with the exception of minors. Here is the link that will take you to the correct page.
The following entity types are required to file beneficial ownership information with the CIPC:
- Profit companies
- Non-profit companies
- External companies
- Close Corporations
Documents we will need to assist you with when filing with CIPC:
- A mandate needs to be uploaded to the CIPC with the details of the person/people who have permission to upload beneficial ownership information
- A correctly certified ID / passport copy (no older than 3 months) for each beneficial owner saved
- A securities register, also called the share register, indicating all current and past shares issued together with the information pertaining to the shareholders
- A beneficial interest register. We can assist all entities compiling their beneficial interest register for the first time.
- A beneficial ownership disclosure form which is like an organigram providing clarity on complex ownership structures
Whenever there are changes in beneficial ownership, a company must update its Beneficial Ownership Register within 10 days of the change and file with CIPC.
Trusts have not been excluded from the change in legislation. To read more about beneficial ownership in relation to Trusts, you can read our previous blog post here.
This process can feel overwhelming but we are more than capable and willing to assist you. You can reach out to your aXia Consulting Account Manager or for new clients, you can contact us at admin@axiaconsulting.co.za
Content created by Brand Narrative
Afrikaans 
English