New Penalty Norms for Delay in Filing Charge Documents

MCA on April 30, 2019 has amended the Companies (Registration Offices and Fees) Rules, 2014. A new sub-item “E. Fees for filing charge documents” has been inserted, which sets out the quantum of fees, which is payable by a company for not filing the charge documents with the ROC within the period, as prescribed in Section 77 of the Companies Act, 2013.

The issuer company is required to file charge forms with the ROC within thirty (30) days of its creation/ modification. Such filings can be extended up to three hundred (300) days of its creation/ modification provided requisite permission is obtained from the ROC in this regard. If the ROC gives the aforementioned permission, the issuer company can make such delayed filings on payment of the below mentioned penalty.

  • Penalty for delayed filing for charges created or modified before November 2, 2018:
  • Sl. No. Period of Delay Additional Fee applicable
    1. Up to 30 days 2 times of normal fees
    2. More than 30 days and up to 60 days 4 times of normal fees
    3. More than 60 days and up to 90 days 6 times of normal fees
    4. More than 90 days and up to 180 days 10 times of normal fees
    5. More than 180 days 12 times of normal fees

  • Penalty for delayed filing charges created or modified after  November 02, 2018:
    • The following fees shall be payable up to July 31, 2019:
    • Sl. No. Period of delay Additional Fee applicable
      1. Up to 30 days 2 times of normal fees
      2. More than 30 days and up to 60 days 4 times of normal fees
      3. More than 60 days and up to 90 days 6 times of normal fees

    • The following fees shall be payable with effect from August 01, 2019:
    • Sl. No. Period of delay Small Companies and One Person Company Other than Small Companies and One Person Company
      1. Up to 30 days 3 times of normal fees 6 times of normal fees
      2. More than 30 days and up to 90 days 3 times of normal fees plus an ad valorem fee of 0.025 per cent. of the amount secured by the charge, subject to the maximum of one lakh rupees. 6 times of normal fees, plus an ad valorem fee of 0.05 per cent. of the amount secured by the charge, subject to the maximum of five lakh rupees”.