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MEANING OF CHARGE:

According to section 2(16) of the Companies act 2013, charge means 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.

REGISTRATION OF CHARGE UNDER COMPANIES ACT 2013

1. According to section 77(1) of the Companies Act, 2013 and Rule 3 of Companies (Registration of charges) rules, 2014: every Company creating or modifying the charge, whether in India or outside, shall register the particulars of charge signed by the company and the charge holder within 30 days of the creation or modification of the charge.

2. The following are the forms for creation/modification of charge:

a) Form No. CHG-1 for charges other than debentures

b) Form No. CHG-9 for debentures including modifications.

However, the Registrar may allow the company to register the charge after the abovementioned period on receiving the application by the Company.

a) charges created before the commencement of the Companies (Amendment) Ordinance, 2019, within a period of three hundred days of such creation (270 days more after the expiry of 30 days).

b) charges created on or after the commencement of the Companies (Amendment) Ordinance, 2019, within a period of sixty days of such creation, on payment of such additional fees as may be prescribed i.e. additional 30 days.

Provided further that if registration is not made within the prescribed time period, then:

  • The registration of the charges shall be made within six months from the date of commencement of the Companies (Amendment) Ordinance, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of Companies
  • The Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such ad valorem fees as may be prescribed.
  • After 60 days, the company may file an application to CG for extension and if approved, register the charge on payment of ad valorem fees.

3. Registrar shall issue a certificate as follows:

  • Form No. CHG-2 for registration of charge
  • Form No. CHG-3 for modification of charge

Also Read: Brief notes on ROC forms for Registration of Charges

REGISTER OF CHARGES:

Register of charges is to be maintained by the Company in Form No. CHG-7 and shall be kept at the registered office of the company and be preserved for a period of 8 years.

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3 Comments

  1. Santosh says:

    Condonation of delay is an unnecessary not so value added procedure which the Govt should preferably abolish by taking fee based on number of days delay. I feel this will be better.

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