TaxTMI 
TaxTMI 
TaxTMI 
The Ministry of Corporate Affairs, vide its Notification dated 13.06.2018 introduced the Companies (Significant Beneficial Owners) Rules 2018.
In nutshell, a Beneficial owner of shares, holding the ultimate beneficial interest of not less than 10% in a Company and whose name is not entered in the register of members of the Company is required to comply with certain formalities as per the above-mentioned rule.
Example:
H-Holding Company; S-Subsidiary Company
In 'H'-Mr. A holds 10%
-Mr. B holds 20%
-Mr. C holds 30%.
Accordingly, in Company'S' Mr.A, Mr.B & Mr.C are 'Ultimate Beneficial Owners'
FORMS AND RETURNS TO BE FILED
S. No. | Form/Return | Purpose |
1 | BEN-1 | Every Significant Beneficial Owner shall file a declaration in Form No. BEN-I to the Company in which he holds the Significant Beneficial Ownership on the date of commencement of these rules within ninety days from such commencement and within thirty days in case of any change in his Significant Beneficial Ownership |
2 | BEN-2 | Company shall file Form No. BEN-2 with the Registrar in respect of declaration, within a period of thirty days from the date of receipt of declaration BEN-1, along with the fees as prescribed in companies (Registration offices and fees) Rules, 2014 |
3 | BEN-3 | The company shall maintain a register of significant beneficial owners in Form No. BEN-3. |
4 | BEN-4 | Company shall give notice seeking information in Form No. BEN-4. |
Note: The instruments in the form of global depository receipts, compulsorily convertible preference shares or compulsorily convertible debentures shall be treated as ‘shares’ for the purpose of determination of significant beneficial ownership.