Disclosure of Significant Beneficial Ownership

Updated: Jun 24

As per Section 90 of the Companies Act, 2013 and notified Companies (Significant Beneficial Owners) Rules 2013, every Reporting Company having shareholder that is a company or partnership firm or trust (“the Member“) has to mandatorily procure a declaration in Form BEN-1 from the ultimate beneficial owner (“the Individual Shareholder”) of all Members holding more than 10% of shareholding/control in the Reporting Company on or before September 10, 2018. The Form BEN-1 received from the Individual Shareholder is required to be filed in E-form BEN-2 within 30 days of receipt of declaration from the Individual Shareholder.

What do you have to do?

If the above mentioned Rules are applicable to your Company, request you to approach your Individual Shareholder for providing us the below mentioned details to enable us to assist you with the filing of E-form BEN-2:

  • Self-attested scanned copy of identity proof for resident individual i.e. PAN;

  • Self-attested scanned copy of identity proof for non-resident individual i.e. Passport;

  • Residential address;

  • Nationality;

  • Occupation;

  • Percentage of voting rights in the company; and

  • Date of acquisition of shares (if available).

How can LexStart Help?

  • Prepare and file Form BEN-1 i.e. Declaration by Individual Shareholder;

  • Prepare and file E-form BEN-2 i.e. Return to the Registrar; and

  • Prepare and maintain the Register of Beneficial Owner.   

₹ 9,499 /- ONWARDS

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Penalty for non-compliance by Individual Shareholder?

  • Fine up to INR 1,00,000/- and a continuing penalty of INR 1,000/- per day.

  • The defaulter may be charged with fraud under Section 447 of the Companies Act, 2013.

  • National Company Law Tribunal (“NCLT”) may impose restrictions on the transfer of shares.

  • NCLT may suspension all rights attached to shares example voting rights, dividends, etc.

If you need any information or clarification, please do not hesitate to contact us.

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