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Ben-1 declaration

NISHA AGARWAL (Chartered Accountant) (454 Points)

03 September 2019

What is the declaration to be filed by subsidiary company if its holding company is required to file Form BEN-2?

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Chirag (Professional) (1979 Points)
Replied 04 September 2019

If the Holding Company have Identified SBO, then first get BEN-1 From "Reporting Holding Company "[BEN-1 Which is Recieved By Holding Company] as an attachment to BEN-2 by Subsidiary company,and In BEN-2 give details of Holding Reporting company....

So, Declaration Received by Holding Reporting company shall be used by subsidiary company also in BEN-2

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NISHA AGARWAL (Chartered Accountant) (454 Points)
Replied 20 September 2019

A Private Limited company is a subsidiary of a public limited company and a holding company of a pvt ltd company. How is the BEN form to be filed in this case?

Chirag (Professional) (1979 Points)
Replied 20 September 2019

Assume as per your query, Three companies ABC PVT LTD, ABC LTD &XYZ PVT LTD, Now For XYZ PVT LTD ---ABC PVT LTD is holding Company and ABC LTD is Ultimate Holding Company, In this case you need to check who is majority stakeholder Of more than 51% in ABC LTD, here XYZ & ABC PVT LTD both will File BEN-2 with attachment of BEN-1 Received by ABC LTD (ultimate holding company) .....

Example - Mr. A is a promoter of ABC limited, He holds 51% Stake in ABC limited ,Now ABC Ltd holds 51% Stake in ABC Pvt Ltd. and in turn ABC pvt ltd holds 51% Stake in XYZ pvt ltd, here the situation of SBO's are as followed :-

Reporting Entity. SBO
ABC LTD. MR. A
ABC PVT LTD. ABC LTD
XYZ PVT LTD. ABC PVT LTD

Now, ABC ltd will not file any BEN -2 because MR. A has direct holding, ABC PVT LTD being a reporting holding company will file BEN -1 with details of MR. A(Hodling majority stake in ABC LTD) & XYZ PVT LTD will also use same BEN-1 which is recieved to it by ABC PVT LTD.

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NISHA AGARWAL (Chartered Accountant) (454 Points)
Replied 20 September 2019

Originally posted by : Chirag
	Assume as per your query, Three companies ABC PVT LTD, ABC LTD &XYZ PVT LTD, Now For XYZ PVT LTD ---ABC PVT LTD is holding Company and ABC LTD is Ultimate Holding Company, In this case you need to check who is majority stakeholder Of more than 51% in ABC LTD, here XYZ & ABC PVT LTD both will File BEN-2 with attachment of BEN-1 Received by ABC LTD (ultimate holding company) .....Example - Mr. A is a promoter of ABC limited, He holds 51% Stake in ABC limited ,Now ABC Ltd holds 51% Stake in ABC Pvt Ltd. and in turn ABC pvt ltd holds 51% Stake in XYZ pvt ltd, here the situation of SBO's are as followed :-Reporting Entity. SBOABC LTD. MR. A ABC PVT LTD. ABC LTD XYZ PVT LTD. ABC PVT LTD Now, ABC ltd will not file any BEN -2 because MR. A has direct holding, ABC PVT LTD being a reporting holding company will file BEN -1 with details of MR. A(Hodling majority stake in ABC LTD) & XYZ PVT LTD will also use same BEN-1 which is recieved to it by ABC PVT LTD.

THANK U SO MUCH..

Chirag (Professional) (1979 Points)
Replied 20 September 2019

Welcome... however, I forgot to mention in my reply that Indirect Holding Of MR. A in ABC Pvt ltd is (His holding In ABC LTD x ABC Ltd holding in ABC PVT LTD ),which is 51%x 51% comes to 26.01% and Holding In XYZ pvt ltd is 26.01%x51% which will be 13.27% ( ie. More than Prescribed limit of 10% Indirect holding)