CIPC and Beneficial Ownership
Filing Beneficial Ownership (BO) information is an important part of corporate compliance. This is especially true under the Companies Act.
This process aims to make things clearer and stop illegal activities like money laundering and funding terrorism. It does this by finding out who really owns or controls a company.
Key Points and Requirements
- Timeline and Filing Requirements: Entities formed before 24 May 2023 must file their Beneficial Interest Register records. This is part of their Annual Returns process, starting on 24 May 2023.
- Entities Incorporated After 24 May 2023: These entities must include their records of beneficial ownership in their annual return filings from the start.
- Deadline: There is no specific deadline for submitting beneficial ownership information. However, all companies must submit their declarations within 30 business days. This is due on their anniversary date, along with their annual return submissions.
- Validation and Penalties Validation: Starting on December 11, 2023, the Annual Return service will check the Beneficial Ownership Filing. It will ensure that the filing is up to date. If it is not, the service will redirect to the appropriate service for updates. This validation, which began on 11 December 2023, serves as a compliance reminder to entities. Starting on April 15, 2024, entities must follow the beneficial ownership filing rules. If they do not, they will not be able to submit their annual returns.
- Penalties: Not following these requirements is an offense. It may lead to compliance notices and administrative penalties.
Defining Beneficial Owners
A "beneficial owner" is a person who owns or controls 5% or more of a company. This can be done directly or indirectly. They may also have a strong influence on how the company is managed in different ways, including:
- Ownership or control of company securities.
- Exercise of voting rights or control over such rights.
- The power to appoint or remove board members.
- Ownership or control chains involving holding companies or other legal entities.
Required Information for Each Beneficial Owner
For effective compliance, entities must collect and file the following information for each beneficial owner:
- Full names and identification details (ID number, passport number with date of birth, or registration number).
- Business or residential addresses, and email addresses.
- Details on the extent and nature of the beneficial interest. This information must be collected in a register. It should allow easy access to data for each person. We must ensure confidentiality and protect against unauthorized access or data breaches.
Register Maintenance and Submission
- Confidentiality: The register must remain confidential. We need to have measures to stop unauthorized access or changes.
- Updating: You must report any changes in beneficial ownership to the CIPC within 10 business days of the change.
- Filing Process: You must file the register and a list of supporting documents online with the CIPC. This is explained in the guide. You also need to submit an updated register with each Annual Return.
Conclusion
Having an up-to-date Beneficial Ownership register is important for transparency and accountability in business. Companies need to understand these requirements. They should follow them on time to avoid penalties. Companies should learn these requirements and comply on time to avoid possible penalties.
Do you need a Quote for our Tax and Accounting Services?
Contact our team via any of the following channels to get a proposal for your accounting and tax services:
Subscribe to our newsletters.
Purchase Contract TEMPLATES and BUSINESS STATIONERY at www.ZEELIEONLINE.com
Disclaimer:
The views or opinions expressed on this site are solely those of the original authors and other contributors.
The material and information contained on this website is for general information purposes only.
This information is for general purposes only. Don't use this information for making business, legal and tax decisions without consulting a professional.
We do not make any express or implied representation, as to the completeness or accuracy of the information published.
Tax law regularly changes, so any tax information on this site could become outdated.
We are not responsible for any other websites that you may access through links on our website.
ZPA accepts no liability for any loss or damage arising from the use of any material on this site.
