04
Jun2018

DISCLOSURE OF REAL BENEFICIAL OWNER

Section 90 of the Companies Act,2013 along with Companies (Significant Beneficial Owners) Rules, 2018 (“SBO Rules”) has been amended by MCA.

As per the latest amendment, Every individual shall hold an ultimate beneficial interest, by holding 10% or more; or exercise any right of significant influence in a company, but whose name is not entered in the register of members of company (Significant Beneficial Owners) is required to disclose necessary details to the Company.

The objective of aforementioned disclosure is to identify the true individual owners of a company. In case of complex layered structure, one has to go beyond at the top of the structure to identify the true owner.

IMMEDIATE DISCLOSURE WITHIN 90 DAYS

  1. An individual who is a significant beneficial owner shall make a declaration within 90 days i.e. till 12th September 2018in form BEN-1 to the Company.
  2. Company on receiving the aforesaid declaration shall
    • file a return with the Registrar of Companies within 30 daysfrom the date of receipt of such declaration in form BEN-2 and
    • Maintain a register of the interest declared by individuals as aforesaid in form BEN-3 and such register shall be open for inspection by any member of the company.

CONTINUOUS DECLARATION IN 30 DAYS

  1. Any individual becoming a significant beneficial owner after 13th June 2018 shall make a declaration within 30 days from the date of acquisition in form BEN-1 to the Company.
  2. Any change in the significant beneficial ownership shall be filed within 30 days from the date of such change in form BEN-1.

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