Since 2023, South African companies must identify and report their beneficial owners to CIPC. A beneficial owner is a natural person who ultimately owns or controls 5% or more of a company, either directly or indirectly. This rule is part of South Africa's anti-money-laundering and corporate transparency obligations.
Who is a beneficial owner?
A beneficial owner is a human being, not a company or trust. The test looks through layers of ownership to find the person who ultimately benefits from the company's shares or voting rights. Common examples include:
- A shareholder who holds 5% or more of the shares directly
- A person who controls a holding company that owns shares
- Someone who exercises control through voting agreements or veto rights
What CIPC requires
Companies must keep a beneficial ownership register at their registered office and file changes with CIPC within 5 business days. The register must include each beneficial owner's full name, ID number, address, and the nature and extent of their ownership or control.
5% is the threshold. Anyone who directly or indirectly holds 5% or more of the shares or voting rights must be recorded.
How AccPro Lite helps
- Beneficial ownership register linked to each company record
- Automatic calculation of total ownership percentages
- Reminders when a change must be filed within 5 business days
- Export of the register and CIPC filing fields
- Secure storage of ID and address documents
Keep your beneficial ownership register compliant
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