Registration of Charge
A charge is a security given for securing loans or debentures by way of a mortgage on the assets of the company.The process of creating a security over assets of the company is referred to as registration of charges or creation of charges. Once a charge is created, it becomes the responsibility of the company to register those charges with the Registrar of Companies, along with the documents, that create a charge over the company within 30days of creation og charge otherwise the charge is void against the liquidators and the creditors of the company.
In case the terms, conditions, extend or operation of a charge created on a company and filed with the Registrar is changed, then the company must file for modification of the charge.
Step wise process to complete the Registration of Charge
- Gathering requisite information/ documents (Document creating charge. For e.g. Deed of Mortgage, Term Loan Agreement, etc)
- Preparation of Secretarial Documents as required
- Preparation and filling of required Form for registering the Charge with the Registrar of Companies
- Filing the application with Registrar.
- Obtaining Certificate of Registration of Charge from the Registrar.
When the charge created on a property or asset of a company is satisfied in fully, the company must give intimation to the Registrar on satisfaction of the charge. The Satisfaction of charge to be filed within 30 days of satisfaction with the Registrar of Companies.