16 January 2025
Editor: ET
In Singapore, registering a charge is a critical legal requirement under the Companies Act. It ensures transparency, protects creditors, and upholds the integrity of the business environment.
Understanding who must register a charge is essential for maintaining compliance and avoiding legal repercussions.
Further Reading: How Corporate Secretaries Support Business Growth in Singapore
Who Must Register a Charge?
1. Singapore-Registered Local CompaniesAny company incorporated in Singapore, regardless of its size or industry, must register a charge if it creates one to secure a loan or other financial obligation. This includes:
Private limited companies (Pte Ltd)
Public companies limited by shares
Companies limited by guarantee
Local companies must ensure that charges are registered promptly to avoid invalidation against liquidators or other creditors.
2. Singapore-Registered Foreign CompaniesForeign companies operating in Singapore are also required to register charges. This applies to charges created on their Singapore-based assets or for loans obtained to fund their Singapore operations.
Examples of Foreign Companies That Must Register Charges:
Branch offices of overseas companies
Subsidiaries incorporated in Singapore but controlled by foreign entities
Why Is Registering a Charge Important?
Failing to register a charge can result in severe consequences, such as:
The charge becoming void against the company’s liquidators or other creditors.
Potential legal disputes during insolvency or restructuring.
Loss of credibility and trust with stakeholders and financial institutions.
How to Register a Charge
Determine ResponsibilityThe responsibility for registering a charge typically lies with the company’s directors or the appointed corporate secretary.
File via BizFile+Submit the charge registration through the BizFile+ portal within 30 days of creating the charge. Ensure all necessary documents are included.
Seek Professional AssistanceEngaging a corporate secretarial service, such as Expede Tech Pte. Ltd., ensures the process is handled accurately and efficiently.
How Expede Tech Can Help
Expede Tech offers expert corporate secretarial services tailored to Singapore businesses. From ensuring timely charge registration to maintaining compliance with ACRA requirements, we are committed to helping your business succeed.
Further Reading: Registering a New Charge for Companies in Singapore
Registering a charge applies to all Singapore-registered local and foreign companies. Compliance is not just a legal requirement—it safeguards your company’s financial standing and reputation. By understanding your obligations and seeking professional guidance, you can focus on growing your business with confidence.
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