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Nominee Compliance (OPC) – Expertvuw
Ownership Disclosure

Nominee Shareholding Declarations — MGT-4, MGT-5 and MGT-6

Last updated: 2 October 2026

Where shares are held in one person’s name for the benefit of another — common in wholly owned subsidiaries and family holdings — the Companies Act requires declarations from both and a filing by the company. Our team prepares the declarations and files Form MGT-6.

Overview

How nominee holdings are declared

Section 89 of the Companies Act, 2013 applies when the person whose name is in the register of members (the registered holder) does not hold the beneficial interest in the shares.

  • The registered holder declares this to the company in Form MGT-4, within 30 days.
  • The person holding the beneficial interest declares it in Form MGT-5, within 30 days.
  • The company records the declarations in its register of members and files Form MGT-6 with the ROC within 30 days of receiving them.

The most common case is a wholly owned subsidiary, where a nominee holds one share for the parent company to meet the minimum-shareholder rule. Nominee holdings also feed into the significant beneficial owner (SBO) analysis.

Based on section 89 of the Companies Act, 2013 and the Companies (Management and Administration) Rules, 2014. Last updated: 27 September 2026.

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What This Service Covers

What our nominee compliance service covers

1

Identifying nominee arrangements in your shareholding

2

Nominee agreement or declaration of trust, where needed

3

MGT-4 and MGT-5 declarations

4

MGT-6 filing with the ROC within 30 days

5

Register of members and SBO records updated

Key facts at a glance

Section 89

Provision on declaration of beneficial interest

MGT-4

Declaration by the registered holder

MGT-5

Declaration by the beneficial owner

MGT-6

Company’s return to the ROC

30 days

Time limit for each declaration and the filing

Nominee

Common in wholly owned subsidiaries

Common Issues

Where nominee compliance commonly goes wrong

Nominee shares are often set up once and forgotten.

No declarations

A nominee holds a share for years without MGT-4 or MGT-5.

Nominee changes

A new nominee is appointed but the declarations are not refreshed.

SBO not linked

The beneficial owner is not reflected in SBO filings.

Related Services

Related services

Nominee holdings connect to other ownership disclosures.

SBO Compliance

Significant beneficial owners.

Indian Subsidiary

Foreign parent with a nominee.

Share Transfer

Changing the nominee.

Statutory Registers

Register of members.

Documents Required

Documents we need from you

Shareholding Documents

Party Documents

Our Process

How we handle nominee declarations

1

Review

We identify nominee arrangements in your shareholding.

2

Agreement

Nominee agreement prepared or reviewed.

3

Declarations

MGT-4 and MGT-5 signed by the parties.

4

Board noting

Declarations noted by the board.

5

Filing

MGT-6 filed with the ROC within 30 days.

6

Records

Register of members and SBO records updated.

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Changes

When the arrangement changes

Fresh declarations are needed whenever the arrangement changes.

New nominee

Fresh MGT-4, MGT-5 and MGT-6 when the nominee changes.

Ending the arrangement

Declarations when the beneficial owner takes the shares directly.

SBO update

Check whether BEN-2 needs updating.

Penalties

Penalties apply to parties who fail to declare.

Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    What is Form MGT-4?

    The declaration by a registered shareholder who does not hold the beneficial interest in the shares, filed with the company within 30 days.

    The declaration by the person who holds the beneficial interest in shares registered in another person’s name.

    Within 30 days of receiving the MGT-4 or MGT-5 declaration.

    A private company needs at least two members, so a nominee usually holds one share on behalf of the parent.

    No. Nomination decides who receives shares on death; a nominee shareholder holds shares for another person during their life.

    About Expertvuw

    Who handles your case

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    This work is handled by Expertvuw’s team, with filings made on the MCA portal. Certifications and audits required by law are issued by independent practising professionals engaged for your case.

    Expertvuw Management Pvt Ltd