Companies Act · Beneficial Ownership

Significant Beneficial Owner Under Section 90: BEN-2 Risk Checklist

Finin2min Compliance Desk·June 2026·7 min readSBO

SBO compliance is where simple cap tables often fail. Section 90 looks through direct ownership to significant beneficial ownership, including acting alone, together, through persons, trusts or foreign structures.

Section 90 base

Section 90 requires every individual who, acting alone or together, or through one or more persons or trust, including persons resident outside India, holds significant beneficial interests, to make declaration to the company, and the company maintains register and filing controls.

SBO review table

StructureReview question
Individual holds shares through company/LLPWho ultimately controls or benefits?
Foreign holding structureAre resident-outside-India persons part of beneficial chain?
Trust / nominee arrangementWho has beneficial interest or control?
Investor rights / poolingAre persons acting together?
Change in ownership/controlDoes fresh declaration and filing trigger arise?

Company evidence file

Finin2min warning

Cap table is not the same as beneficial ownership. Look through layers before filing annual or investment-related records.
💼
Build your MCA compliance folderSave approvals, registers, attachments, SRNs and challans in one year-wise folder before due dates.
Explore Compliance Guides →

Official sources used

This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.

FAQs

Which section covers SBO?

Section 90 covers register of significant beneficial owners in a company.

Does SBO cover indirect ownership?

Yes. Section 90 refers to persons acting alone/together or through persons/trusts, including persons outside India.

Should startups review SBO after funding?

Yes. Funding rounds can change indirect ownership/control and trigger review.