Beneficial Ownership compliance is still relatively new for many South African businesses, and as a result, misinformation is widespread. Let’s unpack and debunk some of the most common myths.
Myth 1: “Only large companies need to file BO information.”
Reality: This is false. Every registered company in South Africa — whether large or small, active or dormant — is required to submit a Beneficial Ownership Register, unless explicitly exempt. This includes private companies with a single shareholder.
Myth 2: “My accountant already handles that.”
Reality: While your accountant may manage your financial reporting, most are not equipped to handle BO disclosures. The process requires knowledge of company law, CIPC systems, and complex ownership structures. You need a service provider like Company Files that specialises in this compliance area.
Myth 3: “I’m the only owner, so I don’t need to do anything.”
Reality: Even if you are the sole owner, you are still required to declare yourself as the beneficial owner through a formal submission. Self-ownership doesn’t exempt you from disclosure.
Myth 4: “The CIPC won’t check or enforce this.”
Reality: The CIPC has already begun enforcement and has issued notices and penalties for non-compliance. Banks are also refusing to open accounts without BO submissions — enforcement is real and growing.
Avoid These Pitfalls With Expert Help
At Company Files, we help you avoid missteps by ensuring your BO filings are correct, up-to-date, and submitted professionally. From just R625.00 excl VAT, we provide peace of mind and compliance confidence.
