Who needs to file Beneficial Ownership?

Private Companies (PTY), Close Corporations (CC), Non-Profit Companies (NPC), State-Owned Companies (SOC), Personal Liability Companies (PLC), and Public Companies (LTD), including JSE-listed companies, must file beneficial ownership information with the CIPC.

What are the filing deadlines?

Companies must file within 30 days of their anniversary date or within 10 days after incorporation if registered after 24 May 2023. Any changes must be filed within 10 days. As of 1 July 2024, annual returns cannot be filed unless beneficial ownership has been submitted.

What happens if I don’t comply?

Non-compliance can lead to penalties, inability to file annual returns, deregistration of the company, and potential personal liability for directors or members. CIPC investigations, administrative fines, and director disqualifications can also occur.

How can Novular Innovative assist?

We assist with identifying and documenting beneficial owners, preparing and submitting the required registers to the CIPC, and ensuring all filings comply with regulatory deadlines.

Novular Innovative I Beneficial Ownership Compliance

Beneficial Ownership Compliance For Your Business

The What and Why?

Mandatory Submission to CIPC:
Under the amended Companies Act, all companies are now required to submit details about their beneficial ownership to the Companies and Intellectual Property Commission (CIPC).

Definition of Beneficial Owner:
A beneficial owner is defined as a person who, in essence, has ownership or control over a company.

Purpose of the Requirement:
This requirement aims to mitigate risks associated with financial fraud and money laundering by providing transparency in company ownership.

Deadlines for Submission:
For Existing Companies:
The information must be filed with CIPC within 30 days of the company's next anniversary date.

For New Companies (Post 24 May 2023):
Companies registered after May 24, 2023, must submit their beneficial ownership information within 10 days of incorporation.

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Easy Online Solution

For beginners

Follow these easy steps:

1. Complete the Contact Form:
Start by filling in your details below.

2. Confirm Your Instruction to us:
We will contact you and confirm your instruction to us and guide you regarding the information we require from you.

3. Receive Your Certificate:
Get your CIPC issued Beneficial Ownership Certificate.

PRICING:
All-Inclusive Price: R575.00 per entity with one beneficial owner. (Thereafter R125.00 extra per beneficial owner to be verified.)

Turnaround time: 1-2 days, typically same day!

Start Filing Now!

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Benefits

For beginners

Effortless Documentation:
We prepare all your Beneficial Ownership documents:

Seamless CIPC Submissions:
We manage the entire submission process on your behalf!

Transparent, All-Inclusive Pricing:
One-time fee with no hidden costs or ongoing monthly charges.

FREE Fully updated Statutory Registers for your business.

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What our clients say..

"Quick, efficient service, with the theoretical knowledge and experience to back it."

Mike Terblanche
Blue Bay Investments
Port Elizabeth

"Novular Innovative stood up to it's name and corporate identity as a reliable company that delivers in an ever evolving world of corporate compliance especially with regards to CIPC applications.

Thank you Novular for being attentive and reliable, Danie is principled."

Kabelo Tshepe
Maiden Cardinal Asset Management GroupSandton

"Danie helped me within a few hours of enquiring, and absolutely went the extra mile to assist me with my company's CIPC matters!

He followed up and made sure everything was in order to the last detail!

Thank you so much!"

Marina Fourie
InquratedPretoria

"Thank you for your service. Very correct and fast."

Willem and Thandie Kielen
Bushbaby Lodge & CampingHluhluwe KZN

Beneficial Ownership Explained

Beneficial Ownership is a regulatory initiative aiming to promote transparency and eliminate hidden interests in business structures. It addresses the need for clear identification of individuals who ultimately own or control a company.

The Companies and Intellectual Property Commission (CIPC) has taken steps to ensure that South African businesses are held accountable in this aspect. By October 2023, all companies operating in the region were required to disclose specific details about their beneficial ownership to the CIPC.

The deadline for filing beneficial ownership to CIPC is within 30 days of the company's next anniversary date (similar to annual returns) or within 10 days of incorporation if they were registered after 24 May 2023.

What is Beneficial Ownership?

A beneficial owner is an individual who directly or indirectly owns or controls 5% or more of a company’s shares or voting rights.

This control can also be exerted through other means such as influencing management decisions or holding interests in company securities.

In essence, the beneficial owners are typically shareholders or members who own a significant stake in the company.

Who Needs to File?

The following entities are required to 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), including those listed on the Johannesburg Stock Exchange (JSE).

Filing Deadlines and Enforcement

The CIPC initially set the deadline for beneficial ownership filings to be 1 October 2023, but the current rule requires filing:

a) Within 30 days of a company’s anniversary date (similar to the annual return deadline), or

b) Within 10 days after incorporation for companies registered after 24 May 2023.

Furthermore, companies must file any changes to their beneficial ownership within 10 days of the change occurring.

As of 1 July 2024, a hard-stop functionality was introduced, which prevents companies from filing their annual returns unless beneficial ownership for the calendar year has been submitted.

Legal Requirements and Purpose

The legal requirement to file beneficial ownership information was introduced to reduce the risk of financial crimes such as money laundering and terrorist financing, while also enhancing transparency in company structures.

The CIPC maintains a register of beneficial ownership, which is used to:

a) Establish a public record of individuals who ultimately own or control legal entities.

b) Assist law enforcement by identifying the ultimate owners of entities under investigation.

c) Address concerns identified in the Financial Action Task Force (FATF) national risk assessment, which flagged legal persons as vehicles vulnerable to abuse for illicit activities.

Consequences of Non-Compliance

Failure to comply with these regulations will lead to penalties, including:

a) Inability to file annual returns, which could lead to deregistration of the company.

Once deregistered, the company ceases to exist, and directors or members could be held personally liable for the debts of the company or close corporation.

b) CIPC investigations and sanctions, including compliance notices, administrative fines, and the disqualification of directors.

How We Can Assist

Our Company can assist with all aspects of the beneficial ownership filing process, including:

a) Identifying and documenting beneficial owners.

b) Preparing and submitting the required registers and supporting documents to the CIPC.

c) Ensuring all filings comply with the regulatory deadlines.

If you would like assistance with the process or have any questions, please do not hesitate to contact us.