Indian units of more MNCs under beneficial ownership glare
₹27 lakh on LinkedIn Technology Information Pvt. Ltd. set up in India, Microsoft Corp.
chief executive Satya Nadella, LinkedIn CEO Ryan Roslansky and seven other individuals for alleged violation of SBO reporting norms. One of the persons cited above said India is adding about 150,000 new businesses every year, including companies and limited liability partnerships (LLPs), and would soon be reaching the level of some of the developed countries in Europe. “In such a scenario, unless the quality of enforcement is good, it can cause problems in future," the person said on condition of anonymity.
Regulatory action against alleged non-disclosure of beneficial owners is part of a larger effort to enhance the quality of enquiries by RoCs, who have been proactive in the last few years in removing defunct companies from the official registry and in detecting shell companies. “It is a fact that bigger companies create complex structures. Not all of them are for wrongful purpose and in many cases, it may be for efficiency in taxation or in organizing business.
Be that as it may, who is controlling the business should not be hidden. It is the duty of the company to identify and report its beneficial owners," said the person quoted above. “Companies have to come clean on who is owning them.
It is like an internal know your customer (KYC) for them," the person said. Emails sent to the ministry of corporate affairs and to the RoCs on 18 June and to Samsung and Linkedin on Friday seeking comments for the story remained unanswered at the time of publishing. A second person, who also spoke on condition of anonymity, said that the emphasis on enforcement of provisions on significant beneficial ownership comes in the context of a country
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