ACCFIN COMPANY LAW
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  (c) Company name, 2024

16.7 BENEFICIAL OWNERSHIP FILING TO THE CIPC

Explain the steps in order to file beneficial ownership with the CIPC. SPECIFY the rules and how to do.
Filing beneficial ownership information with the Companies and Intellectual Property Commission (CIPC) is a mandatory process for South African companies and close corporations. This procedure ensures transparency by identifying individuals who directly or indirectly own or control a company. Non-compliance can lead to significant penalties, including administrative fines of up to 10% of the company's turnover or R1 million, whichever is greater.
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Steps to File Beneficial Ownership with CIPC:
1. Register as a CIPC Customer:
  • Ensure you have a valid CIPC customer code and password. If not, register on the CIPC website.
    2. Access the e-Services Portal:
  • Navigate to the CIPC e-Services portal: https://eservices.cipc.co.za/.
  • Log in using your customer code and password.
    3. Initiate Beneficial Ownership Filing:
  • After logging in, select "Transact" and then choose "Beneficial Ownership" from the list of services.
  • Agree to the declaration information to proceed.
    4. Select the Relevant Entity:
  • A list of entities associated with your customer profile will appear.
  • Select the entity for which you wish to file beneficial ownership information.
  • If the entity is not listed, use the search function to locate it.
    5. Upload the Mandate:
  • Upload a written mandate authorizing you to file on behalf of the entity. This mandate should be on the company's letterhead and signed by the majority of directors or all members in the case of a close corporation.
    CIPC
    6. Enter Beneficial Ownership Details:
  • Provide information about each beneficial owner, including:
  • Full name and surname.
  • Date of birth.
  • South African ID number or passport number (for foreign nationals).
  • Contact details (email and mobile number).
  • Physical and postal addresses.
  • Nature and percentage of ownership or control.
  • For South African citizens, the ID number will be verified against the Department of Home Affairs database.
    7. Upload Supporting Documents:
  • Certified copies of IDs or passports of beneficial owners (dated within the last three months).
  • The company's securities register or beneficial interest register.
  • If applicable, a disclosure form illustrating the ownership structure, especially for complex structures involving trusts or multiple layers of ownership.
    CIPC
    8. Review and Submit:
  • Review all entered information for accuracy.
  • Submit the filing.
  • You will receive a One-Time Pin (OTP) via SMS and email for verification.
  • Enter the OTPs to confirm and finalize the submission.
    9. Confirmation:
  • Upon successful submission, a Beneficial Ownership Confirmation Certificate will be emailed to you.
  • The certificate can also be downloaded from the e-Services portal under "Completed Applications."
Important Considerations:
  • Threshold for Declaration:
  • Only individuals with more than 5% beneficial ownership or control need to be declared. Ownership or control below this threshold is exempt from declaration.
    FWB Law
  • Affected vs. Non-Affected Companies:
  • An "Affected Company" includes public companies and certain regulated entities. Different filing requirements may apply based on this classification. Ensure you select the correct company type during the filing process.
    Tenderkom
  • Deadlines:
  • For companies incorporated before 24 May 2023, beneficial ownership information should be filed as part of the annual returns process.
  • Companies incorporated on or after 24 May 2023 must file within 10 business days of incorporation.
  • Any changes in beneficial ownership must be reported within 10 business days of the change.
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  • Penalties for Non-Compliance:
  • Failure to file beneficial ownership information constitutes non-compliance and may result in administrative fines of up to 10% of the company's turnover or R1 million, whichever is greater.
    Company Partners
For detailed guidance, refer to the CIPC's step-by-step guides available on their official website. These guides provide comprehensive instructions tailored to different company structures.
By following these steps and adhering to the specified rules, you can ensure compliance with the CIPC's beneficial ownership filing requirements.
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