India (IN)

Jurisdiction Overview

IDQuestionAnswer
471 *BO Record: Does the registration of domestic companies comprise beneficial owner's identity information? Yes, up to 10%. All companies require recording of all beneficial owners at threshold of more than any share/influence, up to 10%.
 Data Date: 2019

Notes

 
India introduced amendments to the Companies Law in 2018 and in 2019 regarding companies obligations to disclose beneficial ownership information. Although Indian law referred to beneficial ownership before these amendments, the term lacked a clear definition. The Global Forum reported in 2017: "Although the Indian authorities have indicated that the term must be interpreted as the ultimate owner in an ownership chain, absent a definition, the ownership information collected may not cover beneficial ownership information as required under the 2016 ToR. Accordingly, the requirements under the Companies Act do not ensure that beneficial ownership information as defined by the 2016 ToR are available on companies subject to the Companies Act." (GF 2017: 40). In 2018 and 2019, Section 90 of the Companies Act (which provides the requirements for significant beneficial owners in a company) was amended. According to Mondaq: "Section 90 of CA 2013 [Companies Act of 2013] provides that every 'significant beneficial owner' is required to make a declaration to the company ("Relevant Company"), specifying the nature of her interest and other particulars, in the prescribed manner.[...] As per the definition introduced in the amended Rules, a 'significant beneficial owner' is an individual, acting alone or together with others, who possesses one or more of the following rights or entitlements in the Relevant Company: holds indirectly, or together with any direct holdings, not less than 10% of the shares; holds indirectly, or together with any direct holdings, not less than 10% of the voting rights in the shares; has the right to receive or participate in not less than 10% of the total distributable dividend, or any other distribution, in a financial year through indirect holdings alone, or together with any direct holdings; has the right to exercise, or actually exercises, significant influence or control, in any manner other than through direct holdings alone" (mondaq.com).
 
Regarding registration procedures: "Every individual who is a significant beneficial owner in the Relevant Company, as on the date of commencement of the Amendment Rules, is required to file a declaration with the Relevant Company in Form BEN-1 within 90 days from such commencement [...] Once the Relevant Company receives the declaration from a significant beneficial owner, it is required to file a return in Form BEN-2 with the Registrar of Companies, within 30 days of receipt of such declaration" (mondaq.com).

Sources

http://www.mondaq.com/india/x/804156/Corporate+Commercial+Law/MCA+Introduces+Amended+Rules+For+Significant+Beneficial+Ownership
 
https://taxguru.in/company-law/analysis-disclosure-beneficial-interest-companies-act-2013.html
 
http://corporatelawreporter.com/companies_act/section-90-of-companies-act-2013-investigation-of-beneficial-ownership-of-shares-in-certain-cases/
 
Companies Act 2013, Section 90.
 
GF 2013: 26-28
 
GF 2017: 26, 40-41