What is the Register of Charges in business?
The Register of Charges is a formal record of all the charges against a company. This includes any charges that have been filed with the court, as well as any unpaid debts. This is basically a public record, so anyone can access it. These Charges are used by creditors to determine whether or not a company is a good risk. If a company has a lot of unpaid debts, it may be difficult for them to get new financing.
In many businesses, there are times when a company will seek loans from banks or other financial institutions. In such an instance, the creditor can issue a charge on the charged assets of the debtor, and if the debtor defaults on the repayment of the loan, the creditor is entitled to proceed with the sale of that asset and repay the debts owed to the lender from the sale.
Ragistration of Charges
As soon as the charge has been created on the debtor’s assets and the loan has been given to the debtor, both parties have thirty days to register the charge with the Accounting and Corporate Regulatory Authority (ACRA) if the charge was given issued within Singapore. If the charge was created outside Singapore, the parties have to register the charge within thirty days.
What can be the charges to be registered?
Charges can be registered in some cases: When the charge is incurred to secure any of the issued debentures and it is on the uncalled share capital of that company. It can be paid for shares of a subsidiary that is owned by the firm. Also, a charge required by an instrument to be executed, by an individual, as a bill of sale; a charge on land irrespective of where it’s situated; or such a charge.
A mandatory charge can be registered on a company’s debts. In some other situations such as on a project or property of a company or on calls that are unpaid. The charges can be formed on shares in a ship or aircraft and on goodwill, trademark, copyright, or any other intellectual property.
The process to Register a Charge
It is possible to register a charge in Singapore online through ACRA with a SingPass through Bizfile+. There is a fee for this and should be performed by the managing director or an official Dalhousie officer, or it can be accomplished with the services of a registered notary.
An email notification is sent when a customer has confirmed their registered credit card charge. Failure to confirm the charge beforehand or for the charge to be registered before the payment date can lead to the commission of an infraction committed by the registrant.
So, the Register of Charges is a beneficial tool for businesses and their customers. It allows businesses to keep track of their expenses and customers to see where their money is going. The Register of Charges is also a good way to keep track of customer complaints and business expenses.
