> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://support.infodocs.co.za/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# 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.

### 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.

 ![Beneficial Ownership Diagram](https://storage.crisp.chat/users/helpdesk/website/-/d/5/b/9/d5b93bf079ae8000/screenshot-2025-05-17-at-21581_mn86qe.png =1085x784)

### 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](http://www.infodocs.co.za/)