How to create a beneficial ownership diagram

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