CHARGE CREATION, MODIFICATION AND SATISFACTION
Charge is a type of security created on the property of the company. It can be fixed charge that is on immovable property of the Company or a floating charge over changing assets like stock-in-trade. It is the duty of every company to register the charges with the Registrar of Companies. The rationale of registration of charge is to make aware, whoever is intending to deal with the company financially, commercially or in any other capacity, about the burden of fixed financial charges on the assets of the Company.
As per Companies Act, 2013, the Companies are required to file particulars of a charge within 30 days of the creation or modification thereof.
LEGALRAJ can assist you to register charges with the ROC. The average time taken to file for registration of charges is about 5-11 working days, subject to government processing time and client document submission.
Creation and Satisfaction of Charges
1. Register of Charges: It is mandatory to keep and maintain Register of Charges in the format prescribed.
2. Certificate of Registration: When a charge is created and filed with the Registrar, the Registrar of Companies would issue a Certificate of Registration of the said charge to the person in whose favor the charge is created.
3. Charge Modification: 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 intimate ROC by complying the provisions related to modification of charge.
4. Non-Registration: Non-registration of charge is a compoundable offence. As per Companies Act, 2013, non-registration of a charge makes the company and officers of the company liable for fines and punishment.
5. Charge Satisfaction: When the charge created on a property or asset of a company is satisfied in full, the company must give intimation to the Registrar on satisfaction of the charge.
How we help with Charge Creation, Modification and Satisfaction
1. Consultation: We will review loan documentation and the Articles of Association to understand the provisions related to charges and as per the complexities involved, we can assist you with the procedure for charge registration, modification or satisfaction.
2. Form preparation and co-ordination: Then we will provide timelines, forms and do the compliances for you.
3. Filing: We will timely file applicable returns, documents and other formalities with the Ministry of Corporate Affairs to effectuate charge registration, modification or satisfaction.