Many companies assume that once their Beneficial Ownership (BO) Register is submitted to the Companies and Intellectual Property Commission (CIPC), the job is done. However, compliance with BO regulations is not a once-off event — it’s an ongoing responsibility.
When Should You Update Your BO Register?
According to CIPC guidelines and best practices, your BO Register must be updated whenever there is a change in control, ownership, or influence within the company. Specific events that require an update include:
- Changes in shareholders, especially if a new person surpasses the 5% threshold
- Transfers or issuance of shares that shift ownership percentages
- Appointment of directors who now exercise significant control over company decisions
- Trusts acquiring or disposing of shares
- Restructuring of the business, including mergers, acquisitions, or holding company changes
Failure to update your register can result in an inaccurate or outdated filing, which is effectively non-compliance.
Why Is This Important?
Authorities and third parties use your BO Register to assess who truly controls your business. If your records are outdated:
- The CIPC may impose administrative fines
- Banks may reject your FICA documentation
- Investors and auditors may flag your company as non-compliant
- Your company could be seen as concealing information, even if unintentionally
Non-compliance is treated seriously, especially as part of broader efforts to combat money laundering and fraud.
Best Practice: Periodic Reviews
Even if no obvious changes have occurred, you are obligated to submit your BO Register at the end of each financial year. This ensures that any unnoticed shifts — such as new trusts, indirect control arrangements, or hidden influence — are picked up early.
Let Us Keep You Compliant
At Company Files, we not only help you file your initial BO Register, but also offer ongoing support to update and maintain it as your business evolves. Updates are handled promptly, starting from just R625.00 excl VAT.
Stay compliant. Stay current. Partner with professionals who understand your obligations.
