Unnikrishnan B (Forex In Charge) (740 Points)
18 March 2016Sir,
is there any difference between creation of charge and registration of charge
what is the procedure for creation of charge?
what are the procedure for registration of charge ?
thanking you,
Megha Choudhary
(Management Trainee)
(541 Points)
Replied 18 March 2016
yes there is a difference
cz all charges created may not be registered
compliance requirement:
eform CHG-1 for creation of charge for securities other than debentures alongwith instruments creating charge and for debentures it is CHG-9
Entry in register of charge in form CHG-7
IN CASE OF DELAY OF DOING THIS AFTER 30 DAYS BUT BEFORE 300 DAYS
eform GNL-2 for filing form CHG-10 for application for delay
declaration by company
CA Prateek Garg
(CA in Practice)
(1447 Points)
Replied 18 March 2016
CHARGE CREATION
Whenever a company obtains any Debt/Loan/Debenture from public/bank etc. it provides any of its asset/property as security to the lender. This process of securing the lender by offering its properties as securities is said 'charge creation'. It is generally done by executing a instrument or agreement between company and lender.
CHARGE REGISTRATION
Now whenever a company secures any of its debt/loan/debenture by creating a charge on any of its asset/property, it is required u/s 77 of companies act 2013 to register the particulars of such charge with ROC.
Company is required to file FORM CHG 1 (For Other then debenture) or FORM CHG 9 (for Debenture) along with the instrument (i.e. agreement) of charge creation
guttikonda harish
(institute)
(32 Points)
Replied 16 December 2018
CAclubindia
