The Ministry of Corporate Affairs recently introduced the Companies (Significant Beneficial Owners) Rules, 2018 with the intention of identification of Significant Beneficial Owners who is required to comply with certain formalities.
As per these provisions, the “significant beneficial owner” holding ultimate beneficial interest of not less than 10% in the share capital of the Company but whose name is not entered in the register of members of the Company as the holder of such shares shall make a declaration to the company in Form No. BEN-1 on or before 10th September 2018.
Definition of Significant Beneficial Owner:
i) Where the shareholder is a company, the significant beneficial owner is the natural person, who, whether acting alone or together with other natural persons, or through one or more other persons or trusts, holds not less than ten per cent. Of share capital of the company or who exercises significant influence or control in the company through other means;
ii) Where no natural person is identified, the significant beneficial owner is the relevant natural person who holds the position of senior managing official;
Where BEN-1 is received by the company, the Company shall file a return in Form No. BEN-2 with ROC in respect of such declaration, within a period of thirty days from the date of receipt of declaration by it along with a fee as prescribed.