Register of Charges

A charge refers to the security interest taken by a creditor to secure the repayment of loans issued by the debtor. 

In most business operations, there are times when a company would seek loans from banks or other financial institutions. In such a case, the creditor can issue a charge upon the “charged asset(s)” of the debtor, and if the debtor defaults on the repayment of the loans, the creditor is entitled to proceed with the sale of the asset and repay the debts owed from the sale. 

Types Of Charges 

1. Fixed Charge – These are charges made of fixed assets or properties such as land, vehicle, ships, shares, etc.
2. Floating Charge – This type of charge ‘floats’ over the secured assets and can be converted to fixed assets. Floating charges are not explicitly stated; they may be in any form or be anything non-tangible but have value. Examples are stock, book debts, inventory, undertakings, etc.

Registration of Charges

Once 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 has been given was issued within Singapore. However, if the charge was created outside Singapore, the parties have to register the charge within thirty-seven days. 

Charges that Must be Registered

1. A charge incurred to secure any issue of debentures;
2. A charge on the uncalled share capital of a company;
3. A charge on shares of a subsidiary owned by the company;
4. A charge created or evidenced by an instrument which, if executed by an individual, would require registration as a bill of sale;
5. A charge on land irrespective of where it’s situated and any interest within;
6. A charge on book debts of the company;
7. A floating charge on the undertaking or property of a company;
8. A charge on calls made but not paid;
9. A charge on or share in a ship or aircraft; and
10. A charge on goodwill, patent, trademark, copyright or any other intellectual property.

To get the complete list of charges that need to be filed in the register of charges, check out Division 8 of the Company Act. 

This regulation applies to all local and foreign companies registered in Singapore.

How to Register A Charge

You can register a charge in Singapore by;

1. Submitting an application online to ACRA with your SingPass and through Bizfile+. This comes at a fee and should be done by the Company’s director or any authorised company officer. Or;
2. By using a registered filing agent, such a person can submit the filing online on the company’s behalf. 

An email notification would be sent upon confirmation of the registered charge. Late registration of the charge or failure to register it can lead to the commission of an offence in which affected parties can be liable to a fine or can render the charge void upon non-compliance.