As a new start up, one can find that their capital is limited after they just begin starting a business in Singapore. Therefore, it is not uncommon to look into relief opportunities to improve business growth. But in addition to schemes and benefits, one can also apply for loans from credible institutions and banks for further aid.
There are different types of charges a business owner can consider undertaking after their singapore company incorporation process is successful and they are approved to commence business operations. Most of these charges can be further categorised as either floating charges or fixed charges.
Fixed charges are charges that are secured on fixed assets like land, shares, intellectual property and other items. Floating charges, on the other hand, are described as charges that are secured on assets that are non-specific. Floating charges essentially ‘float’ over secured assets, and will only be converted into fixed charges if the corporation fails to repay loans.
By requirement, all local and foreign companies that are starting a business in Singapore are obligated to register charges. To ensure that this can be done in a timely basis, business owners are given a maximum of 30 days from the day of its creation to register. To successfully register a charge, businesses can engage a local registered filing agent to submit the application on their behalf.
They will then know the outcome of their registration through email within 2 working days after they have submitted their application. Business owners are advised to keep this in mind since this can essentially be used as conclusive evidence in the event that they need to show that they have been compliant with all requirements.
It is also prudent to understand that failure to register charges is an offence in Singapore. In cases of conviction, company officers may face a fine of up to $1000. What’s more, non-compliance to charge registering may also mean that the charge is now voided.
Businesses are highly encouraged to apply for charge registration on time. If one is able to predict that they are unable to do so within the given time frame, business owners can actually take the liberty to apply for a time extension. For more information of the businesses ACRA grants time extension to and the find out more about the application, business owners are advised to read up on S137 of the Companies Act.
Instrument charges that are locally created are given within 30 days for the registration process while instruments that are created from outside are given 37. If time extensions are approved, business owners typically receive an extension of up to 3 months for charge registering. Failure to do so will result in the company having to go through the added trouble of getting a court order and then registering the charge.
Once the charges have been completely paid or paid partially, company owners will also be required to inform ACRA by accessing BizFile once again. The charge will then be wiped clean.