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
Significant Business Owner (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.
Nature of Declaration by SBO
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.
Due Date of Filing the BEN-2 Form
The date of the BEN-2 filing depends on the availability of the form on the MCA Portal. It has been clarified by MCA that form can be filed within 30 days without any additional fee
Regular Compliance on Change in SBO
The BEN-2 has to be filed for the first time now and every time there is any change in the shareholding of the company. This is a welcome move to reduce disputes among the shareholders.