Effective from 1 July 2024, the Companies and Intellectual Property Commission (CIPC) has mandated the filing of Beneficial Ownership Declarations along with the Annual Returns for all companies and close corporations. This new requirement stems from the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act, 22 of 2022, which introduced significant changes to the Companies Act, 2008 (“the Act”).
New Filing Requirements
Starting from 24 May 2023, with the implementation of relevant regulations, every company and close corporation must file their Annual Returns with CIPC within 30 business days after their anniversary date.
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This filing must now include:
- The Beneficial Ownership Declaration
- The security register or beneficial interest register (as applicable)
While there was initially an option to defer the filing of Beneficial Ownership information, this is no longer allowed as of 1 July 2024. The new hard-stop functionality implemented by CIPC ensures that Annual Returns cannot be submitted via any electronic platforms unless the Beneficial Ownership Declaration is also filed and up to date.
Additionally, the Act mandates that Beneficial Ownership Declarations, Annual Financial Statements, and Financial Accountability Supplements be filed with the Annual Return.
What does this mean for the clients of FHBC?
As a loyal client of FHBC, if we are responsible for notifying you about your mandatory annual return filing with CIPC, you will receive an email from our office during your company’s anniversary month.
This email will include:
- A quotation for the filing of the mandatory annual return with CIPC.
- Relevant supporting documents needed for the annual return filing.
- A quotation for the filing of the mandatory beneficial ownership with CIPC.
- A Power of Attorney to be signed by the directors/members of the company/close corporation, authorizing FHBC to file the beneficial ownership register on your behalf.
- A summary of the current share/ownership structure of the entity and confirmation required in this regard.
It is crucial to note that FHBC will only be able to file your entity’s annual return for the calendar year once the entity’s beneficial ownership register has been filed.
We kindly request our clients to provide the necessary supporting documents promptly to avoid any penalties for late submission.
If you have any uncertainties or questions regarding the filing of beneficial ownership and annual return processes with CIPC, please contact our FHBC (Wellington) office at 021 864 5180 or email Arné Bester at arne@fhbc.co.za.