Significant Beneficial Owner (SBO) declaration in BEN-1

 Reporting Company can follow the below mention steps in order to ascertain, whether any SBO exist or not:

1. Check whether you have shareholders in form of Body Corporate/HUF/Partnership/LLP/Trust/PIV (“Indirect Entities”)?

2. If answer is no, then no reporting required.

3. If answer to (1) is Yes, check whether they hold 10% or more?

4. If yes, you need SBO reporting.

5. If answer to (3) is No, then no SBO reporting required unless:

1. an individual is holding shares directly, also holds indirectly through various entities mentioned in (1), aggregating to 10% or more

2. an individual is holding shares indirectly through various entities mentioned in (1), aggregating to 10% or more

Note: Identification of SBO based out of step-5 is difficult for a company, therefore

6. Also check whether you are subsidiary company in chain of subsidiary company? If Yes, no reporting required for shares held by Holding Company.

7. Check whether an individual exercise significant influence or control? If yes, SBO reporting required.