Section 90 of Companies Act 2013

Section 90 of the Companies Act 2013 is a crucial provision that deals with the identification and regulation of significant beneficial owners (SBOs) in a company. It was introduced to promote transparency in corporate ownership and ensure that those who hold significant control over a company are clearly identified. This section mandates that individuals or entities holding significant beneficial ownership, defined as directly or indirectly holding 10% or more of shares or voting rights, must declare their ownership to the company. The company, in turn, is responsible for maintaining a register of these SBOs and filing the necessary returns with the Registrar of Companies (RoC). This provision aims to prevent misuse of corporate structures for illegal purposes, such as money laundering or tax evasion, by ensuring that the true owners of a company are publicly disclosed. Compliance with Section 90 of Companies Act 2013 is critical for maintaining corporate governance standards and avoiding penalties. Understanding the intricacies of this section is essential for businesses operating in India to stay compliant with legal obligations.