About the Service
To operate, diversify and expand, a company needs funds. It may finance the various projects through its share capital and borrowed funds. The borrowed capital can be raised by the issue of debentures or by obtaining financial assistance from the Bank or even other Financial Institutions that have NBFC registration. For securing their funds they resort to creating rights on the assets of the borrowing companies, which is known charge creation on assets.
Documents required from your end
Signed resolution of Board of Directors
- Certificate of Registration of Charge
- Entries in Register of Charges
- DSC to be affixed of director and bank representative
and UComply shall file Form CHG-1
Timeline of service
The form is approved within 7 days of filing the form and making the payment.
1. What is the duration for filing for Creation of Charge?
Within 30 days: The Application has to be filed within 30 days of the Creation of Charge in Form CHG-1.
·Between 30-300 days: The Application needs to be filed before the expiry of 300 days from the Creation of Charge in Form CHG-10 attached to Form CHG-1.
·After 300 days: The Application for condonation of Delay to Regional Director in Form CHG-8.
2. What is the penalty for non-filing?
If a company is found to be violating any provision of this Section, it shall be punishable with a fine of not be less than Rs. 1 lakh and which may extend up to Rs 10 lakh. Furthermore, every officer in default shall be punishable with a fine of not less than Rs. 25,000 and may extend up to Rs. 1 lakh, or with imprisonment for up to 6 months, or both.