Understanding the LLP Significant Beneficial Owners Rules 2023

Understanding the LLP Significant Beneficial Owners Rules 2023

Safeguarding Investments: Navigating Restriction on the Transfer of Promoters Shares

The Ministry of Corporate Affairs on November 9, 2023, has notified the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023 (“SBO Rules”). These SBO Rules now obligate LLP’s to ascertain whether an individual qualifies as an SBO.

Up until now, only companies were subjected to regulatory requirements concerning SBOs, but through this notification, the SBO Rules extend the compliance obligations to LLPs as well and they are now required to send notice to individuals to seek declarations and maintain records of SBOs, accessible for inspection to meet compliance standards.

Entities such as (i) Central Government or State Government or Local Authorities; (ii) Reporting LLPs or corporations or entities controlled by Central or State Governments; (iii) Investment vehicles registered and regulated by the Securities and Exchange Board of India; and (iv) Investment vehicles regulated by the Reserve Bank of India, or the Insurance Regulatory and Development Authority of India, or the Pension Fund Regulatory and Development Authority, are however exempted from the requirements under these SBO Rules.

Categories

Contact Us

    burgeon law white logo

    Disclaimer

    As per the rules of the Bar Council of India, law firms are not permitted to solicit work and advertise.

    By clicking the “Agree” button and accessing the website www.burgeon.co.in, the visitor fully understands and accepts that the contents herein are solely for informational purposes and should not be interpreted as solicitation or advertisement. The firm is not liable, in any manner, for the consequences of any action taken by a visitor relying on materials/ information provided on the website. The firm urges visitors to seek independent legal advice for any legal issues.