What is Ultimate Beneficial Owner (UBO)?

What is Ultimate Beneficial Owner (UBO)?

A UBO is a person/entity that ultimately has direct or indirect control over an organisation. A UBO, or Ultimate Beneficial Owner, is an individual or group of people who owns or controls a company or organization. This means that they are the individual who ultimately benefits from the company’s activities, even if they don’t have direct control over the day-to-day operations. Identifying the UBO is crucial for compliance with AML (anti-money laundering) regulations and reducing the risk of financial crimes.

Type of Client

Criteria for Beneficial Ownership


Company (Public or Private)

  • Natural person(s) with more than 10% of shares, capital, or profits.
  • Person(s) exercising control through management or policy decisions (e.g., appointing majority directors, shareholder agreements, etc.).

Partnership Firm/LLP

  • A natural person(s) owning more than 10% of capital or profits.
  • Person(s) exercising control through management or policy decisions.

Unincorporated Association or Body of Individuals (AOP/BOI)

  • Natural person(s) owning more than 15% of property, capital, or profits.


Trust

  • Identification of:-
    1. Author of the trust.
    2. Trustees.
    3. Beneficiaries with 10% or more interest in the trust,
    4. Settlor and Protector.
    5. Any other person exercising ultimate effective control through ownership or chain of control.


Public/ Listed Entity or Subsidiary

  • Exempted if:
    1. Entity is listed on a recognized stock exchange in India
    2. Entity resides in a Central Government-notified jurisdiction with stock exchange listing.
    3. Entity is a subsidiary of such listed entities