What is Charges ?
Creation, modification or satisfaction of Charge
“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.
A charge is created when a company puts forward its assets as security on any amounts loaned to it. Further modification of charge is when the terms of the charge are changed.
The different types of charges as per Section 77, which are to be registered with ROC are:
1.Within or outside India,
2.on its property or assets or any of its undertakings,
3.whether tangible or otherwise, and
4.situated in or outside India
Process for registration or modification of charge is:
1.Convening of Board meeting for approving creation or modification of charge.
2.Filing of particulars of charge in form CHG-1 or CHG-9 (for Debentures), within 30 days from the date of the instrument for creating or modification of charge.
Documents required with CHG-1:
1.Certified true copy of Resolution, approving creation of charge.
2.A Certified copy of the instrument or deed by which the charge is created.
3.In case of Joint charge, particulars of all joint charge holders
4.Any other document, as applicable
Documents required with CHG-9:
1.Certified true copy of resolution authorizing the issue of the debenture.
2.Instrument containing details of the charge created or modified is mandatory in all cases.
3.Any other document, as applicable
Taxcellent will help you in reporting of the charge, with the Registrar of Companies.