Considering that all the other compliances have now been completed and reported to the MCA, the MCA has now pulled up its socks on the reporting requirements of Significant Beneficial Ownership by the Companies.

MCA, on July 1, 2019, issued Companies (Significant Beneficial Owners) Second Amendment Rules, 2019 thereby notifying e Form BEN-2 required to be submitted by companies.

Earlier, the MCA, vide notification dated 8 February 2019, amended the erstwhile Companies (Significant Beneficial Owners) Rules, 2018 by introducing the Companies (Significant Beneficial Owners) Rules, 2019. It had further introduced Rule 2A which bestowed responsibility upon the Reporting Company to find out about the SBO, identify the individual and cause such individual to make a declaration to the Reporting Company in Form No. BEN-1. This form shall be filed by the individual who is the SBO to the Reporting Company within 90 days from the commencement of these Rules (i.e., by 10th May, 2019) and for subsequent changes or acquiring the status of SBO within 30 days of such change or acquiring the SBO.

In order to find out about the SBO, the Company shall send notice in Form No. BEN-4 to all its members(other than individuals) and call for such information of the SBO.

Upon receipt of declaration in Form BEN-1, the reporting company shall file a return in Form No. BEN-2 with the Registrar in respect of such declaration, within a period of thirty days from the date of receipt of such declaration by it, along with requisite fees. Further, register of beneficial owners holding significant beneficial interest is required to be maintained in Form no. BEN 3. 

Since the Form BEN 2 has now been deployed on 1 July 2019 by the MCA on the portal, the Companies will have to compile all the required details for filing this Form with the MCA. The sequence which is ideal to be followed should be as under:

1. Issue of notice in Form BEN 4

2. Obtaining declaration in Form BEN 1 from SBO

3. Reporting to MCA in Form BEN 2

4. Entering the relevant details of SBO in Form BEN 3

Certain further FAQs and clarifications are expected on the same to be issued by the MCA on the subject.

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Company: Wadhwa & Shah, Chartered accountants
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