LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Form BEN-2 query

NISHA AGARWAL (Chartered Accountant) (454 Points)

04 December 2019

Is Form BEN-2 a one time form? Or is it required to be filed whenever beneficial interest gets changed?

Reply
Follow
Share

4 Replies

achuth menon (274 Points)
Replied 04 December 2019

Two step needs to be checked in identification of SBO
first does any body corporate hold 10% or more of the shares or voting rights or share in dividend or other distributions or acquires control or significant influence
if yes we have to see the individual holding majority stake in the body corporate or in the ultimate company holding company or body corporate
BEN - 2 needs to filed to declare the individual holding majority stake
when ever there is a change by way of increase breaching the threshold of 10% or
when ever there is an increase in majority stake

1 Like

NISHA AGARWAL (Chartered Accountant) (454 Points)
Replied 07 December 2019

Originally posted by : achuth menon
	Two step needs to be checked in identification of SBOfirst does any body corporate hold 10% or more of the shares or voting rights or share in dividend or other distributions or acquires control or significant influence if yes we have to see the individual holding majority stake in the body corporate or in the ultimate company holding company or body corporate BEN - 2 needs to filed to declare the individual holding majority stake when ever there is a change by way of increase breaching the threshold of 10% orwhen ever there is an increase in majority stake

Thank You so much for the response.

The percentage of shares held has reduced to 8.5% from 15.6%. The form nowhere mentions to report the change in percentage. What is to be done in this case?

achuth menon (274 Points)
Replied 09 December 2019

The intention of law is to identify individuals in case the body corporate holds 10% or more the change in this regard means The change that would qualify to identify whether any declaration is required ot not in this case the shareholding has gone below 10% so change need not be reported

1 Like

Jatin Bajaj (CS) (2928 Points)
Replied 10 December 2019

As per the latest rules of the significant Benificial owner rules, if there is any body corporate holding 10 percent or more of the shares or voting rights in the Company and if any individuals in that body corporate holds majority of shares in that body corporate or holding Company, then Company has to file form BEN-2 for the individuals who indirectly holds majority of shares in the body corporate or if they holds through trust then they should hold at least 10 percent or more of the shares in that trust. Whenever there is change in the shareholding and individual if indirectly holds majority of shares in that body corporate or holding company or holds more than 10 percent of the shares either through trust or otherwise, Company needs to declare those details in form BEN- 2