A charge is a right or an interest obtained by a creditor or a lender in the property of the company as a security for the debt provided to the company. Such charges are required to be updated with Registrar of Companies at time of creating, or if there are changes, as well as when the charges are satisfied.
Creation of charge
Whenever there is a facility provided by a bank or a financial institution or a lender, they usually take a security in form of charges being created and such charges must be lodged with ACRA via bizfile.
Variation of Charge
If there are any changes in the terms of arrangement of such created charge, the same needs to be notified to ACRA as well.
Satisfaction of Charge
Once the debts have been paid off or facility has been closed, such satisfaction or closure of arrangement needs also to be compulsorily filed with ACRA .
Important things to note about Charge Filings
- Only an authorized Corporate Services Provider is allowed to lodge creation of charges with ACRA. Directors can not use their Singpass for this filing with ACRA
- Charges must be filed within prescribed time (30 days for local and 37 days for overseas created charge) failing which a court order is required
- Normally lenders are very prompt in filing creation and variation of charges however they always ignore the filings for satisfaction of charges
- Therefore you must be very prompt in arranging for filing of Discharge of Charges. A statement of satisfaction of charges signed by bank and a board resolution from company shall be required prior to such filing for satisfaction of charges with ACRA.
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