Who is a Significant Beneficial Owner (SBO)?

MCA has notified the revamped section 90 of the Companies Act, 2013 along with Companies (Significant Beneficial Owners) Rules, 2018 (“SBO Rules”).

Now every individual holding ultimate beneficial interest by way of holding10 % or more or exercise any right of significant influence or control in a company but whose name is not entered in the register of members of company (Significant Beneficial Owners) is required to disclose necessary details to the Company.

The objective of aforesaid disclosure is to identify the true individual owners of a company. In case of complex layered structure, one has to go beyond at the top of the structure to identify the true owner