The UK company law requires company to register the security they given for their loan or borrowing with Companies House within 21 days. The purpose of the registration is to ensure its security in the event of liquidation. Companies House refers the security for a loan as a charge or mortgage.
The registration of a charge or mortgage can be by the company itself or the lender or the lender's agent.
When registering a charge or a mortgage, the relevant Companies House Charges and Mortgages Forms together with the original document for proof of the security must be delivered to Companies House. There are consequences for failed to register the security within the 21 days registration limit.
Charges must be registered with Companies House
Companies incorporated in England, Wales and Northern Ireland must register the following charges with Companies House.
- A charge on land or any interest in land, other than a charge for any rent or other periodical sum issuing out of land
- A charge created or evidenced by an instrument which, if executed by an individual, would require registration as a bill of sale
- A charge for the purposes of securing any issue of debentures
- A charge on uncalled share capital of the company
- A charge on calls made but not paid
- A charge on book debts of the company
- A floating charge on the company's property or undertaking
- A charge on a ship or aircraft, or any share in a ship
- A charge on goodwill or on any intellectual property
The registration of charges for Scottish companies are not exactly the same.
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