Article by: Fourways Accountant: Annja Louca
What is Beneficial Ownership? Failure to register, if you should, will be seen as a breach of the Companies Act and could result in fines being levied. Let’s explain what it all means.
Beneficial Ownership Transparency (BOT)
BOT is all about making it clear who actually owns, controls and benefits from a company’s (or legal entity’s) activities. This is a continent-wide strategy to ensure that those who benefit from owning or controlling a company are not doing so to further activities such as money laundering or terrorism.
If you fancy a longer read on this subject, you can see what TaxJustice.net has written on the subject here.
The functionality provides for corporate vehicles (companies and close corporations) to submit to the Companies and Intellectual Property Commission (CIPC) details regarding their beneficial ownership status (5% and above) in terms of the mentioned corporate vehicles.
CIPC has an explanation on their website to help you better understand what is required and legal basis for doing so.
Some terms explained
We’ll try and clarify exactly what is needed and what is meant by some of the terms used and answer some basic questions.
What is Beneficial Ownership?
In respect of a company, means an individual who, directly or indirectly, ultimately owns that company or exercises effective control of that company.
Who is a Beneficial Owner?
An individual/natural person who, directly or indirectly, ultimately owns 5% and more of a company or exercises effective control of a company.
Can a company/Trust be a Beneficial Owner?
No, only a natural person can be considered a beneficial owner.
What is the Minimum Threshold before a person can be considered a Beneficial Owner?
5% (five percent)
Which entities are required to submit?
Documentary requirements under BOTS
The following documents are now mandatory for the Beneficial Ownership submission:
Non-affected company with beneficial ownership to declare.
Affected companies (with or without BO-information).
Non-affected companies with no beneficial ownership to declare.
If this new requirement affects you, or if you’re unsure exactly how it affects you, please get in touch and we’ll do our best to explain what’s required and how Anlo can help you ensure your compliance with these new requirements.
For more information, please visit our website www.anlo.co.za or give us a call on 0116581324.
