So many people are confused by this. So, here it is in as simple terms as the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act of 2022 will allow.

Beneficial Ownership of Companies

Every company, whether active or dormant, is required (correctly) to submit a BO return to CIPC within 10 days of any change of beneficial ownership. CIPC are also insisting (incorrectly) that this be done annually, before the submission of the normal Annual Return.

The beneficial owners of a company that is owned by natural persons are:

• The shareholders
• Anybody else who has control over the company.

The beneficial owners of a company that is owned by a holding company which has natural persons as shareholders are:

• The shareholders of the holding company
• Anybody else who has control over the company or the holding company.

The beneficial owners of a company that is owned by a trust or another company that is, in turn, owned by a trust are:

• The founder of the trust
• The trustees
• All named beneficiaries of the trust
• Anybody else who has control over the company, the holding company or the trust.

The return to CIPC is to disclose this information.

Beneficial Ownership of Trusts

Every trust, whether active or dormant, is required to submit a BO return to the Master of the High Court. This is a once only requirement unless there is a change of beneficial owner.

The beneficial owners of a trust are:

• The founder of the trust
• The trustees
• All named beneficiaries of the trust
• Anybody else who has control over the trust.

The return to the Master is to disclose this information.