Beneficial Ownership

Written on 12/12/2023
MJ Minter Inc

CIPC (Companies and Intellectual Property Commission) is an agency that regulates the registration and compliance of companies and intellectual property. One of its functions is to keep a register of beneficial ownership (BO) for companies and close corporations.

A beneficial owner is a natural person who ultimately owns or controls a legal entity, such as a company or a close corporation. The CIPC requires any person with more than 5% beneficial ownership of a company or close corporation to file their BO information with the CIPC.

 CIPC has implemented a beneficial ownership interface with effect from 11 December 2023, which means that clients have to file their BO information before filing their annual returns. The interface also validates whether the BO information is up to date and provides a warning message and a link to the BO register if not.

The purpose of the BO interface is to improve transparency and accountability in the corporate sector, and to assist law enforcement agencies in combating money laundering, tax evasion, and other financial crime.

Should you require professional advice in this regard please do not hesitate to contact us.