How to create a beneficial ownership diagram
Creating a beneficial ownership diagram allows you to view ownership structures, organograms and missing information before submitting to CIPC. This article explains what a beneficial ownership diagram is, when it’s needed, and how to create it.
A beneficial ownership diagram is a visual representation of a company’s full ownership and control structure. It traces the relationships between individuals, companies, and trusts to reveal the natural persons who ultimately own or control 5% or more of the company.
These diagrams are often required for compliance, due diligence, and when submitting beneficial ownership information to the Companies and Intellectual Property Commission (CIPC).
In terms of the Companies Act 71 of 2008, as amended by the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022, all non-listed companies must identify and submit information on their beneficial owners to the CIPC.
CIPC Guidance Note 2 of 2023 encourages entities to disclose indirect and complex ownership structures in a visual format to ensure transparency.
A beneficial owner is any natural person who directly or indirectly owns or controls 5% or more of a company.
Step 1: Place the company at the bottom of the diagram as the starting point. This is the entity whose beneficial owners you’re identifying.
Step 2: Include all individuals, companies, or trusts that hold shares in the company and label their percentage of ownership.
Step 3: For juristic entities (e.g. companies or trusts), continue upward through the structure until you reach the natural persons with ultimate ownership or control.
Step 4: Clearly indicate the natural persons who own or control 5% or more, whether directly or indirectly.
Step 5: Label all entities, use consistent shapes or colours, and update the diagram whenever shareholding or control changes.
Jane Doe owns 50% of The InfoDocs Demo Company. The other 50% is held by the John Smith Family Trust. Since John Smith is the trustee and ultimate decision-maker of the trust, he is also a beneficial owner. In this case, the beneficial ownership diagram would show:
The InfoDocs Demo Company at the bottom
Two branches above it: Jane Doe and the John Smith Family Trust
A final branch linking the trust to John Smith
This diagram visually confirms that Jane and John each meet the 5% threshold and must be listed in the register of beneficial owners.
InfoDocs automatically generates a beneficial ownership diagram based on your company’s shareholding and structure, helping you visualise relationships and identify all qualifying beneficial owners.
Get started with InfoDocs today
What Is a Beneficial Ownership Diagram?
A beneficial ownership diagram is a visual representation of a company’s full ownership and control structure. It traces the relationships between individuals, companies, and trusts to reveal the natural persons who ultimately own or control 5% or more of the company.
These diagrams are often required for compliance, due diligence, and when submitting beneficial ownership information to the Companies and Intellectual Property Commission (CIPC).
Legal Requirements
In terms of the Companies Act 71 of 2008, as amended by the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022, all non-listed companies must identify and submit information on their beneficial owners to the CIPC.
CIPC Guidance Note 2 of 2023 encourages entities to disclose indirect and complex ownership structures in a visual format to ensure transparency.
A beneficial owner is any natural person who directly or indirectly owns or controls 5% or more of a company.
Tips on How to Create a Beneficial Ownership Diagram
Step 1: Place the company at the bottom of the diagram as the starting point. This is the entity whose beneficial owners you’re identifying.
Step 2: Include all individuals, companies, or trusts that hold shares in the company and label their percentage of ownership.
Step 3: For juristic entities (e.g. companies or trusts), continue upward through the structure until you reach the natural persons with ultimate ownership or control.
Step 4: Clearly indicate the natural persons who own or control 5% or more, whether directly or indirectly.
Step 5: Label all entities, use consistent shapes or colours, and update the diagram whenever shareholding or control changes.
Practical Example
Jane Doe owns 50% of The InfoDocs Demo Company. The other 50% is held by the John Smith Family Trust. Since John Smith is the trustee and ultimate decision-maker of the trust, he is also a beneficial owner. In this case, the beneficial ownership diagram would show:
The InfoDocs Demo Company at the bottom
Two branches above it: Jane Doe and the John Smith Family Trust
A final branch linking the trust to John Smith
This diagram visually confirms that Jane and John each meet the 5% threshold and must be listed in the register of beneficial owners.
How InfoDocs Helps?
InfoDocs automatically generates a beneficial ownership diagram based on your company’s shareholding and structure, helping you visualise relationships and identify all qualifying beneficial owners.
Get started with InfoDocs today
Updated on: 17/05/2025
Thank you!