The MR01 form is the form that notifies Companies House that the company filling out this form has granted a charge in favour of other creditors or the bank.
What are Charges?
A charge is some sort of a security provided by a corporation for a loan, such as a mortgage.
There are 3 kinds of charges:
- A fixed fee, which sometimes happens when a business borrows for property such as a house or a vehicle. Consequently, the corporation cannot sell this without the consent of the lender and must repay the obligation under the lending arrangement.
- A floating fee covering the total assets of the enterprise. Thus, when the assets are sold, the lender can recover funds. The lender, though, is behind all borrowers, including salaries and all previous prescribed creditors.
- A debenture that is usually used by banks or other financial entities is both a combination of flat and fixed charges. A fixed fee is levied on properties not used or disposed of in the normal course of operations, while a floating fee is levied on the other assets of the corporation.
The details of nearly all charges shall be reported at Companies House within 21 days of the charges being created in accordance with the Companies Act (Amendment to Part 25) Regulations 2013.
In case of liquidation of a corporation, this is to ensure its safety.
Registering Particulars of a Charge
Any interested party can file a fee and an organization itself does not need to register a bill. Usually the payment is recorded by the lender or the agent of the lender. The method used to record the charge details is Form MR01, in which the charge is formed by or shown by a tool. Whether one or more enterprises charge the charging instrument, for a charging business individual the MR01 should used(NB Separate certified copies of the charging instrument should be sent with each form).
The filled in MR01 form should be submitted electronically and/or postal with a certified copy of any related debenture or mortgage instruments attached. You must be vigilant to ensure, since errors lead to a refusal, that knowledge about the instrument is correctly represented on the form. You can miss the mandatory 21-day deadline, which means that the charge must be recorded by a court order.
The approved copy remains on the public ledger at Companies House, so make sure that the original documents are not forwarded. Although the instrument is still in records of the corporation, the instrument(s) can be deleted or compiled from those personal data, including:
- Any personal data about an individual
- The bank/securities account number/identifier
- And a signature.
Related Forms To MR01
If you have no creation or evidence of a charge, you can instead present either MR08, which includes mortgage or the standard security, or the MR09 for a charge registered under Article859A of the Companies Act 2006, which applies to circumstances where the company has bought or bought property that is a company registered in accordance with Article859 C of the Companies Act 2006. It is important to remember that these forms can only be sent per post and are not available for company House web filling.
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MR01 Form Charge
Filing MR01 via online costs £15 and £23 to file a paper form.
MR01 Form Processing Time
There is no precise timeline for Companies House processing this form however postal applications take longer than usual.
Address for MR01 Form
You can send form MR01to any Companies House address, but for expediency, we recommend sending it to the address listed on the forms.
MR01 – Register Particulars of a Charge – Expanded
Things to remember when filing form MR01
Completing the MR01 form is reasonably simple, but you should be careful not to make any errors or discrepancies. The details provided on the form must be exactly the same as on the tool used to generate or prove the charge to prevent refusal.
Section 1 (Company details): You will need to mention the full name and number of the company.
Section 2 (Charge creation date): Here, you will have to enter the charge creation date. This must correspond to the record at Companies House and usually to the date on which the charge is incurred. Particular attention should be paid to the date because the 21-day legislative time period for the registration of a fee is important to calculate.
Section 3 (Name of persons, security agents or trustees entitled to the charge): In this section, you will need to provide the name of the individual(s) that is entitled to the said charge. Note that name(s) must reflect what’s in the written instrument. If there are more than four names, you must tick the declaration to validate the charge to over four individuals, security officers or trustees. Again, make sure that the names on the form are the same as on the charging instruments and the mistake causes Companies House to be refused in advance, which could lead to the statutory deadline being missed.
Section 4 (Description): A brief summary of the charged ground, buildings, vessels, aircraft and/or intellectual property must my entered here. The definition needs only to be straightforward and if you have more than one charge object, you only need to name a few. You can then add a paragraph that reads, “Please refer to the attached instrument for more information on charged ground, ship, aircraft or intellectual property.” If necessary you can also use the continuation page.
Section 5 (Charge or fixed security): This part here is a basic ticking box to see if any other costs or fixed securities of anything other than those covered by Section 4 are included in the instrument.
Sections 6 and 7 (Floating charge and Negative Pledge): These sections are relatively simple boxes for floating charges and negative commitments. If a floating charge is written in the instrument, you have to tick the correct box. If there are terms prohibiting the charger from making an additional security in the written instrument, ticking the correct box is a must.
Section 8 (Trustee statement): This section here, will ask you to check a box to determine if the charger acts as a trustee or not. If a charger acts as a trustee, House Companies shall be told by form MR06 at a later date.
Section 9 (Signature): This section requires an individual with interest in the charge to sign. Companies House has indicated that it is broad enough to involve either a business lawyer or an accused party agent.
It is then necessary to submit information to whom Companies House will return an acknowledgement letter and a certificate.
Submitting Form MR01 Properly
A completed MR01, in the big sealed envelope labelled ‘Companies house – Time critical,” should be submitted to Companies house.
The envelope should include:
- The correctly completed MR01 form
- Two copies of the covering letter, one will be used by the Companies House to acknowledge receipt in
- A certified copy of an instrument establishing the protection,
- A stamped envelope and is addressed to the firm
- and a £ 23 filing fee.
For protection, it is important to write the name and contact information of the person preparing the form at the back of the certified copy of the charging instrument should the form and instrument be separated.
Do not forget to copy and file all documents that you submit to Companies House and mention both the date when you sent the form and the date when you received acknowledgement (this will typically take two business days for Companies House to acknowledge receipt).
A certificate of registration from Companies House, which you can make and file accordingly, will normally take around 5 business days after.
A company may register a charge vie online using their company’s authentication code (which is also the online signature of the company officer when submitting an online application), so be careful not to have long delay in applying for the code in view of the legislative time limit.
You must automatically file an informal correction paper if you notice errors on the form prior to your charge being registered or denied. If there are mistakes on the form, the Registrar at Companies House will refuse the claim, which could have a major effect on the contractual deadline for the registration of a fee. You may make an informal clarification after rejection, but this is a long procedure since the mandatory period of 21 days is a difficult and easy law that cannot be bypassed.
Companies House has right to return forms that have been filled out incorrectly or that are missing details. So make sure to check the following:
- Make sure that the company name and the number matches the data held on the public register.
- Make sure that you have included a certified copy of the instrument
- Make sure that you have entered the date on which the charge was created
- Make sure that you have given the names of persons entitled to the charge.
- Make sure to tick any correct boxes in Sections 3, 5, 6, 7 & 8.
- Make sure that you have given a summary in Section 4.
- Do not forget to sign the form.
- Do not forget to enclose the correct fee.
- Only certified copies of the instrument are to be sent, not the original ones.
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