Almost all the large and small companies depend upon share capital and borrowed capital for getting money for their projects. Borrowed capital may be by way of funds raised by issuing debentures, which may be secured or unsecured, or by getting money from financial institutions or banks. A charge means an interest or right which a lender or creditor obtains in the property of the company by way of security that the company will pay back the debt.
What are the charges that need to be registered with RoC?
- Immovable property: A charge on any immovable property, wherever situated, or any interest therein also needs to be registered. For example Land, buildings, plants and equipments etc. are immovable property and charge should be created on these properties.
- Movable property: A charge, on any movable property of the company must be registered with RoC. However, it should not be a pledge. For example car, gold, shares, goods etc. charge should be created on such movable assets.
- Intangible assets: A charge on intangible assets such as goodwill, patents, a license under a patent, trademark, copyright or a license under a copyright, mining rights, franchise etc. needs to be created.
A charge must be registered with the Registrar within 30 days of its creation However, the Registrar may allow the registration of Charge within 300 days on payment of additional fees. If the ROC is satisfied with the application, then a certificate of registration of charge would be issued by the ROC. The charge created on the assets of the company can be viewed online on the MCA website.
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