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Ministry of Corporate Affairs (MCA) issued a notification on 30th April 2019 amending the Charge filing fees for registration of “Charge Created” and “Charge Modified”. MCA has notified Companies (Registration Offices and Fees) Third Amendment Rules, 2019. Earlier on 2nd November 2018, MCA also issued certain amendments on the provisions relating to charge, i.e., section 77, 86 and 87 of Companies Act, 2013.
Table of Contents
A charge is defined under Section 2(16) of Companies Act, 2013.
It means an Interest or lien created on the property or assets of a Company or
any of its undertaking or both, as a security and includes a mortgage. In case
of creation of charge, it needs to get registered and it is the duty of every
Company creating charge should get it registered with Registrar within 30 days
of creation. In case of delay over 30 days, Registrar may allow getting it
registered within three hundred days by the payment of additional fees.
Every large and small Company need
funds to carry on its operations and day to day activities, thus the companies
rely on share capital or borrowed funds to meet their needs of financing their
projects. Borrowed capital consists of funds raised by issuing debentures,
either secured debentures or unsecured debentures. Companies also obtain
financial assistance from Financial Institutions or Banks.
Financial Institutions lend the money only after getting assured about being repaid in full along with all the interest. Banks make sure their funds are safe and they would be repaid as per agreement. Thus to secure their loans, Banks creates rights in the Assets & Properties of the borrowing companies. Such a creation of rights is termed as the charge on the assets. Such charge on the assets is created as per loan agreements, hypothecation agreements, mortgage deeds, etc, which is executed by Borrowing Companies in the favor of lending Institutions or banks.
Suggested Read: Creation of Charge in India
Normal Fee Structure
Normal Government fees for filing
registration of charge vary as per the Nominal Share Capital of the company:
Charge Created or Modified before 2nd November 2018
The charge created or modified after 2nd November 2018.
company will be able to file till 30th April 2019 on the payment of
following additional fees:
Additional / AD VALOREM Fees
The following additional fees are applicable and shall be payable with effect from 1st August 2019:
Is there is any requirement to apply for the registrar
for condonation of delay in case of delay beyond 300 days?
application is now not required to be filed with the registrar to condone the
delay for omission to file the form for creation or modification of charge.
Who has to file the registration of creation or
modification of charge?
It shall be
the duty of every company creating a charge on its asset to file for the
registration in form CHG-1 or CHG-9 within 30 days.
What is the filing fee for CHG-1 in the case of a company is a foreign company?
for registration of creation or modification of Charge by the foreign company
is Rs. 6000/- per charge.
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