Charge Creation & Satisfaction
Companies Act, 2013 defines “charge” as an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. Hence, charge is a type of security created on some property of the company to secure company lent. Charge can be fixed if it’s attached to a specific item of property (for example land); a floating charge is created when charge is created over changing assets (for example cash, receivables). It is the duty of every company to register with the Registrar of Companies specific charges created by the company on its assets. The purpose of registration of charge is to provide public notice to those who contemplate giving credit to the company on how far the property of the company is encumbered.
As per Companies Act, companies are required to file particulars of a charge within 30 days of the creation thereof, otherwise the charge is void against the liquidators and the creditors of the company.
CatEye is the leading business services platform in India, offering a variety of services like charge creation, company registration, trademark filing, GST registration, income tax filing and more. CatEye can help you register charges with the Registrar of Companies. 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. Get a free consultation on procedure for charge creation by scheduling an appointment with an CatEye Advisor.