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THINGS TO KNOW BEFORE YOU REGISTER- REGISTRATION OF CHARGE

Whenever Company takes loan by creating charge on its assets. Company is required to register the charge by filing form to ROC within 30 days of creation of charge. We at 1Stop.in helps our clients to comply with the procedure of same.

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introduction

INTRODUCTION

As per Companies Act 2013, Charge means a lien or interest created on asset or property of a company or any of its undertaking as security and includes mortgage. Earliar in Companies Act 1956, the word mortgage was not mentioned. It is mandatory for all companies creating charge to register particulars of charge with RoC within 30 days of its creation. Particulars of Charge that has to be filed with RoC:-
1. Date and description of instrument creating charge.
2. Total amount secured by the charge .
3. Date of resolution authorising the creation of charge.
4. General description of the property charged.
5. A copy of the document evidencing creation of charge to be enclosed.
6. List of the terms and condition of the loan.
7. Name and address of the charge holder.

Advantages

Registration of Charges:-

It the responsibility of the compny to register charges with registrar of companies along with the documents that create a charge over them. As per the provisions of The Companies Act 2013, following charges created on the company must be registered with RoC within 30 days of creation:-

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Kinds of Charge:-

FAQ

Most frequent questions and answers
faq

As per section 77(3), if a charge is not registered by the company and RoC not issue the certificate of registration than in that case charge shall not be taken into account by any liquidator or any other creditor.

No, personnel guarantee of promoters are not asset of the company. Therefore there is no need to create charge on personnel guarantee of promoter

FDR given to bank as security for a loan, amount to pledge of movable property and under Companies Act 2013 it is required to create charge on pledge. So it need to be registered as charge.

Company cannot create security on future assets as they are not part of assets side of company’s balance sheet. Therfore no need to create charge on future assets of company

As per rule 10(1) registers shall be kept at the registered office of the company. Company can’t maintain register of charge at any other place.

It shall be authenticated by director or company secretary of company or any other person authorized by the board for this purpose.

Any member or creditor of the company without fees and on payment of fees any other person can inspect the register of charge of company.

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