CIPC Beneficial Ownership requirements have become more stringent, with increased scrutiny of Beneficial Ownership (BO) submissions. If your organogram does not include all the required ownership information, your submission may be rejected. Here’s what has changed, what the CIPC expects, and how CompanyRegisters helps you stay compliant.
What has changed to the CIPC Beneficial Ownership requirements?
The Companies and Intellectual Property Commission (CIPC) has recently increased its scrutiny of Beneficial Ownership (BO) submissions, with reports of submissions being rejected where the organogram does not clearly indicate the percentage or size of interest held by each Beneficial Owner or Beneficiary, as well as the effective date on which that ownership or membership commenced.
To help you remain CIPC compliant and avoid unnecessary submission delays, we’ve outlined these important requirements below. Keep reading for the latest CompanyRegisters updates and guidance to ensure your Beneficial Ownership submissions meet the CIPC’s current requirements.
You may receive a message similar to the below upon rejection:
“The Percentage/size of interest of individual Beneficiaries/Beneficial Owners and the date of membership must be completed in the Organogram.”
These updated CIPC Beneficial Ownership requirements are intended to improve transparency regarding ownership and control of companies and trusts.
One user obtained guidance from the CIPC regarding this requirement:
“The whole point of beneficial ownership declarations relate to beneficial ownership transparency – which includes the indication of the extent of ownership or control as well as from which date.
It forms part of the integral data requirements of beneficial ownership declarations and is required to be captured on the BO-declaration platform. It follows that where a disclosure form has been submitted, the same information must be contained therein. There is extensive guidance on BO-declarations available.” (BO guidance from the CIPC)
Meeting the CIPC Beneficial Ownership requirements
It is your responsibility as a compliance agent to accurately declare the Beneficial Ownership in the Organogram and Interest Register. Lucky for you, CompanyRegisters has all of these fields covered!
To comply with the CIPC Beneficial Ownership requirements, ensure your Organogram and Interest Register include the following information:
1. The full name of each Beneficial Owner or Beneficiary.
2. The percentage or size of the ownership interest or voting/control rights held.
3. The effective date from which the individual became a Beneficial Owner, Beneficiary, shareholder, member, or otherwise acquired the relevant ownership or control.
(Displayed on the organogram):
4. The ownership and control structure linking the entity to each Beneficial Owner.
CompanyRegisters makes it easier to comply with the latest CIPC Beneficial Ownership requirements by ensuring all mandatory information is captured before submission. For more information on Beneficial Ownership in CompanyRegisters, check out these tutorials!
Beneficial Ownership for Companies and CC’s
Beneficial Ownership for Trusts
As always, our team is here to help! Contact us via email on support@companyregisters.co.za, or submit a support ticket at mycompanyregisters.co.za/support