Explanation
Significant Beneficial Ownership (Section 90 of Companies Act 2013): every company with assets or turnover > ₹10 crore or listed company must identify individuals who are ultimate beneficial owners — directly or indirectly holding ≥10% shares/voting rights/profit interest, or exercising significant influence. The SBO files BEN-1 with the company; the company files BEN-2 with the ROC within 30 days. Annual disclosure in financial statements required. This is aimed at preventing shell companies and tax evasion. Non-compliance: penalty of ₹1,000/day up to ₹10 lakh on company, ₹1,000/day on officer. Verify on the MCA V3 portal.