Information

A charge is a right created by any person including a company referred to as “the borrower” on its assets and properties, present and future, in favour of a financial institution or a bank, referred to a “the lender”, which has agreed to extend financial assistance. Company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation /Modification or Satisfaction under the Companies Act, 2013. After the charge gets registered, registrar will issue certificate of registration to the person in whose favour the charge is created.We at Cokaco help you to register such charge within short time by requirements of few documents.

Documents / Information

Creation / Modification of Charge
  1. Particular of Charged Property
  2. Amount of Debt secured
  3. Details of Charge cerator
  4. Details of Charge Holder/ Joint holders
  5. Email ID
  6. PAN Instrument creation / Modification of Charge
  7. Type of Charge
  8. Whether consortium finance is involved
Satisfaction of charge
  1. Particulars of the charge holder
  2. Particulars of creation of original charge and subsequent modifications
  3. Letter of the charge holder stating that the amount has been satisfied
  4. Amount of Debt secured

Process :-

  1. Obtain particulars of property charged
  2. Prepare documents and forms
  3. Filing of Form
  4. Obtain Charge Certificate

FAQ :-

Whar is a Charge?

A charge is a right created by any person including a company referred to as “the borrower” on its assets and properties, present and future, in favour of a financial institution or a bank, referred to as “the lender”, which has agreed to extend financial assistance.

Is it mandatory to register a charge with Registrar of Companies?

No it is not mandatory to register a charge with ROC, but it is the duty of the Company to do so.

Why should a charge be registered with ROC?

It is always recommended to register a charge with ROC because if a charge is not registered with ROC it shall be void as against liquidator or any other creditor of the Company. This does not, however, mean that the charge is altogether void and the debt is not recoverable. So long as the company does not go into liquidation, the charge is good and may be enforced.

Also, if any person acquires a property, assets or undertaking for which a charge is already registered, it would be deemed that he has complete knowledge of charge from the date the charge is registered.

What is the time limit for registration of charge?

A charge should be registered / modified / satisfied with ROC within thirty days of creation / modification / satisfaction of charge.

What happens if the charge is not created / modified / satisfied within thirty days?

In case of falure to register / modify charge within thrity days, thw Company may apply for condonation of delay to the ROC within three hundred days. The ROC, on being satisfied that the Company had sufficient cause for not filing the particulars and instrument of charge, if any, within a period of thirty days of the date of creation of the charge, allow the registration of the same. If company fails to register the charge even within this period of three hundred days, it may seek extension of time from the Central Government.

Where the satisfaction of the charge is not filed within thirty days from the date on which such payment of satisfaction, the Registrar shall not register the same unless the delay is condoned by the Central Government.

What other compliances are required in this regard?

Register of charges has to be maintained in form CHG-7. The same shall be preserved permanently and the instrument creating a charge or modification thereon shall be preserved for a period of eight years from the date of satisfaction of charge by the company.

Information

A charge is a right created by any person including a company referred to as “the borrower” on its assets and properties, present and future, in favour of a financial institution or a bank, referred to a “the lender”, which has agreed to extend financial assistance. Company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation /Modification or Satisfaction under the Companies Act, 2013. After the charge gets registered, registrar will issue certificate of registration to the person in whose favour the charge is created.We at Cokaco help you to register such charge within short time by requirements of few documents.

Creation / Modification of Charge
  1. Particular of Charged Property
  2. Amount of Debt secured
  3. Details of Charge cerator
  4. Details of Charge Holder/ Joint holders
  5. Email ID
  6. PAN Instrument creation / Modification of Charge
  7. Type of Charge
  8. Whether consortium finance is involved
Satisfaction of charge
  1. Particulars of the charge holder
  2. Particulars of creation of original charge and subsequent modifications
  3. Letter of the charge holder stating that the amount has been satisfied
  4. Amount of Debt secured
  1. Obtain particulars of property charged
  2. Prepare documents and forms
  3. Filing of Form
  4. Obtain Charge Certificate
Whar is a Charge?

A charge is a right created by any person including a company referred to as “the borrower” on its assets and properties, present and future, in favour of a financial institution or a bank, referred to as “the lender”, which has agreed to extend financial assistance.

Is it mandatory to register a charge with Registrar of Companies?

No it is not mandatory to register a charge with ROC, but it is the duty of the Company to do so.

Why should a charge be registered with ROC?

It is always recommended to register a charge with ROC because if a charge is not registered with ROC it shall be void as against liquidator or any other creditor of the Company. This does not, however, mean that the charge is altogether void and the debt is not recoverable. So long as the company does not go into liquidation, the charge is good and may be enforced.

Also, if any person acquires a property, assets or undertaking for which a charge is already registered, it would be deemed that he has complete knowledge of charge from the date the charge is registered.

What is the time limit for registration of charge?

A charge should be registered / modified / satisfied with ROC within thirty days of creation / modification / satisfaction of charge.

What happens if the charge is not created / modified / satisfied within thirty days?

In case of falure to register / modify charge within thrity days, thw Company may apply for condonation of delay to the ROC within three hundred days. The ROC, on being satisfied that the Company had sufficient cause for not filing the particulars and instrument of charge, if any, within a period of thirty days of the date of creation of the charge, allow the registration of the same. If company fails to register the charge even within this period of three hundred days, it may seek extension of time from the Central Government.

Where the satisfaction of the charge is not filed within thirty days from the date on which such payment of satisfaction, the Registrar shall not register the same unless the delay is condoned by the Central Government.

What other compliances are required in this regard?

Register of charges has to be maintained in form CHG-7. The same shall be preserved permanently and the instrument creating a charge or modification thereon shall be preserved for a period of eight years from the date of satisfaction of charge by the company.