Creation and Registration of Charge with Registrar of Companies (ROC)

• September 4, 2019
• CA Chandan Agarwal's Office

This Article is as per THE COMPANIES (AMENDMENT) ACT, 2019, hereinafter referred to as the Act.

When a company requires funds, financial assistance, working capital finance as loan or debt, or to raise capital for financing large scale projects and expanding its business they certainly approach the banks and the financial institution for the same. On the other hand the banks and the financial institution requires security (i.e., property, vehicle, etc.,) for the loan / fund provided.

If a proper security is created over the assets of the company, then the bank or financial institution can take possession of the assets secured and conduct sale, to repay the loan. The Companies Act, 2013 requires all companies to file the requisite particulars with the ROC for all security created over the assets of the company. The process of creating a security over assets of the company is referred to as creation or registration of charges. In this article, we look at all aspects of charge registration in a company.

Read more on: https://taxguru.in/company-law/creation-registration-charge-registrar-companies.html