This article aims to give you, S R Auditor’s esteemed client, an overview of your obligation to file with BRELA, information on beneficial ownership of shares. The deadline for the same is 31 Dec 2021 as per BRELA’s press release.
This is in accordance to the THE COMPANIES (BENEFICIAL OWNERSHIP) REGULATIONS, 2021 (click to download)
Under section 3, the above regulations read:
A company incorporated or registered under the Companies Act, shall submit to the Registrar particulars of its beneficial owners in form No. 14b prescribed in the Companies (Forms)
Rules.
The relevant forms that may be required to be filled and filed are:
- Form 14b PARTICULARS OF BENEFICIAL OWNERS (Download Form)
- Form 14c NOTICE OF CEASING TO BE A BENEFICIAL OWNER (Download Form)
- Form 14d DECLARATION BY THE REGISTERED OWNER OF SHARES BUT WHO DOES NOT HOLD THE BENEFICIAL INTEREST IN SUCH SHARES (Download Form)
- Form 14e DECLARATION BY THE BENEFICIAL OWNER WHO HOLDS OR ACQUIRES BENEFICIAL INTEREST IN SHARES BUT WHOSE NAME IS NOT ENTERED IN THE REGISTER OF MEMBERS (Download Form)
- Form 14f CHANGE OF BENEFICIAL OWNERS PARTICULARS (Download Form)
Who is a beneficial owner?
A beneficial owner is a natural person who either owns, controls or is entitled to a substantial economic interest, whether directly or indirectly, over a company. A person who exercises significant control over another person related to a company is also considered as a beneficial owner.
Who should file Beneficial ownership?
A Director
A Secretary
Where can I file Beneficial ownership?
At the Beneficial Ownership Portal
Are there any fines for missing the deadline?
As per section 10 of the above regulations:
A person who-
(a) fails to keep record of beneficial owners;
(b) fails to provide information to the Registrar about a
change in beneficial ownership of a company;
(c) fails to provide the Registrar with a declaration
containing information on the beneficial owners of the
company; or
(d) contravenes any provision of these Regulations,
commits an offence and shall be liable to a fine of not less than five million shillings but not exceeding ten million shillings.
DISCLAIMER
As always, anything on this site should not be relied upon in place of appropriate professional advice. Laws may change from time to time.
For professional tax advice, Connect with us.