Beneficial Ownership

URGENT UPDATE FROM CIPC AND REMINDER:

If you have already advised us on proceeding with filing of beneficial ownership you can ignore.

IMPORTANT ANNOUNCEMENT FROM THE CIPC 

The Companies and Intellectual Property Commission (CIPC) introduced a voluntary beneficial ownership register from April 1, 2023. However, effective May 24, 2023, the filing of beneficial ownership and securities registers became mandatory following the promulgation of the Amended Companies Regulations. Entities incorporated after this date must file beneficial ownership information within 10 business days of incorporation, with the same timeline for updates in case of changes. 

Pre-existing entities with anniversaries after the promulgation must also file. 

A hard-stop functionality preventing non-compliant entities from filing annual returns will be implemented from April 1, 2024. 

Non-compliant entities will face enforcement actions, and all entities must file beneficial ownership information by May 24, 2024, as mandated by the amended regulations. 

FILING BENEFICIAL OWNERSHIP AT CIPC FOR COMPANIES & CLOSE CORPORATIONS

CIPC have implemented a new regulatory requirement to file beneficial ownership of all companies and close corporations. 

A beneficial owner means the individual (or individuals) who, directly or indirectly, ultimately own or exercise effective control of a company or close corporation. 

This requirement appears to be one that needs to be implemented to get out of the grey -listing.

We are also concerned that non-compliance at CIPC may result in CIPC not allowing company changes to be effected on their system.

Consequences of non-compliance

Should companies fail to correctly disclose the beneficial ownership, the company may risk possible business restrictions and non-compliance with the Companies Act, which may cause serious damage to a company's reputation and the ability to conduct business.

Required Documents

The following documents are required to declare the beneficial ownership at CIPC.We have certain of these documents already but will, if necessary, contact you for any missing documents

1. Company Registration Certificate (Cor14.3 or Disclosure Certificate)

2. Certified ID copies of all directors and shareholders-not older than 3 months

3. Notarised Passport copies (mandatory for foreigners)

4. Letter of Authority (where a trust is the shareholder) & Representing Trustee`s full name

5. Contact number and Email address for all directors and shareholders

6. Share Register and Share certificates

7. Organogram

Fees

Our fees include:

1. Declaration of Beneficial Ownership at CIPC

2. Drafting and submission of company Organogram  

We understand that we are all not pleased with the increasing number of rules companies are required to adhere with and the costs involved to be compliant. Unfortunately, there is no option but to comply.