Security on loan

UK company law requires limited company to register the security they given for their loan and borrowing with Companies House.

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 your company or your lender or your lender’s agent.

When registering a charge or a mortgage, your company is required to complete the relevant Companies House Charges and Mortgages Forms. Your company must submit the completed form together with the original document for proof of the security to Companies House.

There are consequences for failed to register the security within the 21 days.

Charges must be registered with Companies House

limited company incorporated in England, Wales and Northern Ireland must register the following charges with Companies House. Therefore, you must register a charge on or for:

  • On land or any interest in land, other than a charge for any rent or other periodical sum issuing out of land.
  • 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.
  • Uncalled share capital of the company.
  • Calls made but not paid.
  • A charge on book debts of your company.
  • A floating charge on the company’s property or undertaking.
  • A ship or aircraft, or any share in a ship.
  • A charge on goodwill or on any intellectual property.

Registration of charges for Scottish limited company is not exactly the same.

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