Summary
- The introduction of Form BEN-2 under Section 90 of the Companies Act, 2013 mandates Indian companies to report details of Significant Beneficial Owners (SBOs) to the Registrar of Companies (ROC) within 30 days of receiving declarations in Form BEN-1.
- This framework aims to enhance transparency by identifying individuals who ultimately own or control a company, even through complex ownership structures.
- Companies must maintain accurate records and comply with SBO requirements to avoid penalties, which can reach ₹1,00,000 plus ₹1,000 per day for ongoing defaults.
- The implementation of BEN-2 is crucial for improving corporate governance and preventing misuse of corporate structures in India.
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