Identification of SBO
The first step in filing the BEN-2 is to identify the Significant Business Owners of the company, as per rule every person holding 10% or more equity in the company is a Significant Business Owner (SBO)
Register of SBO of the Company
After identification of the SBO, the company must prepare and maintain a Register of Beneficial Owners holding Significant Beneficial Interest in the company in the prescribed Form No - BEN-3
Declaration by the SBO in BEN-1
The company needs to send an intimation letter (Form BEN-4) to each and every SBO seeking their information and particulars in the prescribed form BEN-1, the form is designed to capture all investments of the SBO in the company or elsewhere.
Filing of BEN-2 (Return of SBO)
The last step is to file the return of Beneficial Interest in the Company in Form BEN-2 in respect of all the declarations received from the SBO
The SBO is a person who holds 10% or more beneficial interest in the company which may be by virtue of equity shareholding or by in any other manner resulting in the voting rights of 10% or more.
The SBO has to furnish a very detailed declaration of investment in all kinds of business like, HUF, Proprietorship, partnership concerns or other any other companies, irrespective of the size and quantum of such investment.