Registering a New Charge for Companies in Singapore

10 January 2025

Editor: ET

When a company in Singapore creates a charge to secure a loan or debt, it is legally required to register the charge with the Accounting and Corporate Regulatory Authority (ACRA).

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This process ensures that the charge is legally enforceable and compliant with the Companies Act.

Which Charges Must Be Registered?

Here is a list of charges that require registration with ACRA:

1. A charge to secure any issue of debentures

2. A charge on 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 that would require registration as a bill of sale if executed by an individual

5. A charge on land or any interest therein

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 a ship, aircraft, or any share in a ship or aircraft

10. A charge on goodwill, patents, trade marks, copyrights, or licenses under them

Steps to Register a Charge

1. Prepare the DocumentsGather all relevant documents detailing the charge and the secured assets.

2. File the Charge with ACRASubmit the details of the charge via the BizFile+ portal within 30 days of the charge’s creation.

3. Verify RegistrationEnsure that the registration has been completed successfully and complies with Sections 131 to 141 of the Companies Act.

Further Reading:Why Accurate Financial Records Are Crucial for ACRA Compliance

Why Timely Registration Matters

Failure to register a charge within the prescribed time frame can render the charge void against a liquidator or other creditors, leading to financial and legal complications.

Stay compliant and protect your company’s financial interests by adhering to ACRA’s registration requirements.