New legislation was passed during May 2023 that allows the CIPC to keep a register of beneficial ownership (BO) for companies and close corporations. The register to be kept is for the applicable companies and close corporations to submit any beneficial ownership information relating to that entity. Anyone with more than 5% beneficial ownership of a company or close corporation must submit (file) with the CIPC, the requisite information.
The following entity types are required to file BO-information, if applicable:
• Close Corporations
• Profit companies
• Non-profit companies
• External companies
Entities with types of statuses, such as active, business rescue and deregistration process, may proceed to file.
Entities with the following statuses cannot file BO-information:
• Final de-registration (whether voluntary or AR)
• Voluntary de-registration process (not AR)
• Final Liquidation
• Voluntary liquidation
• Provisional liquidation
• Suspended
• Conversion from CO/CC or CC/CO
• Dissolved.
It remains the responsibility of the directors of companies and members of close corporations as part of their due diligence and governance duties to ensure BO-filing (as and when applicable) is facilitated. Therefore, when providing a mandate to any person to file beneficial ownership information on behalf of the entity, directors and members must ensure that the information is correct and valid.
From 1 July 2024, it is no longer possible to submit your Annual return to CIPC if your Beneficial Ownership has not been declared.
If there were any changes to your company or close corporation, for example, share transfers, director changes, member changes, etc. a new BO must be submitted within 10 days after the changes are made.
CMV Group can help you to submit these documents and reports accurately and professionally.
Should you need help with this process, please contact us as soon as possible.