Every Company needs funds to operate, diversify and expand its business for which it can raise funds by issuing securities or borrowing money from Banks, NBFCs and other financial institutions. Each and every project of the Company couldn’t be financed by issuing securities; alternatively, it can be financed by borrowing money from banks and financial institutions. To get the surety that that their funds are safe and would be repaid along with the principal amount & interest Banks/Financial Institutions resort to securitize the loans by creating rights over the assets of the borrowing Company by way of creating charges.
A Charge means an interest or lien created on the property and assets of the Company or any of its undertakings or both as security and includes mortgage.
DUTY OF REGISTRATION OF THE CHARGE
- As per Section 77 of the Companies Act, 2013 It shall be the duty of every company creating a charge over its properties to register it by filing form with the Registrar within thirty days of its creation
- As per Section 78 of the Companies Act, 2013 where a company fails to register the charge within the above mentioned period the person in whose favour the charge is created may apply to the Registrar for registration of the charge.
WHY TO REGISTER A CHARGE:
- In case the charge is not created or registered with the ROC and a certificate of registration is not issued by the Registrar of Companies, then such charge shall not be taken into account by the liquidator or any other Creditor
- To offer a public notice towards those who contemplate giving credit to the company to know the extent of the property of the company which is encumbered.
- To avoid fine and punishments levied under Companies Act, 2013 and other applicable laws.
SERVICES PROVIDED BY US:
Our team provides following services in relation to management of charge:
- Conducting the search of the records of the Company (which proposes to take loan) as maintained by the respective Registrar of Companies having jurisdiction over the registered office of the Company;
- Preparing, Certification and filing of creation and modification of charge form in respect to all type of assets whether tangible or non-tangible with the respective ROC.
- Preparing, Certification and filing of satisfaction of charge form with the respective ROC;
- Filing petition for Condonation of Delay in filing Charge Forms
THE J&P ADVANTAGE:
Our CS Team at J&P handles the whole process with utmost due diligence. From documents compiling to the completion of the process our team works with utmost care leaving no potential loopholes. J&P is known for keeping its clients in a constant loop of the forth coming action of any kind so that the potential client is aware about its standing in the corporate sector.