Sec 77 and sec 87 of the Companies Act, 2013 deals with charges. “Charge” is defined as-
“Interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. Charge is created on assets of the Company and such assets are defined in Schedule III of the Companies Act, 2013. All companies need to file CHG 1 for creation of Charge with ROC with in Due date. In this article we explained about Charge creation & Procedure to Filing CHG-1
Thus when a company borrows secured loan from any financial institution like banks in lieu of mortgage of Assets of the Company like pledging of shares or any property of company whether movable or immovable then the same shall needs to be intimated to Registrar of Companies (ROC). The Company shall intimate to ROC within 30 days from the date of creation of Charge.
Form CHG-1 shall be filed within 30 days from the date of creation of charge.
The ROC shall modified form CHG-1 wef 1st August, 2019. New forms can be accessed from www.mca.gov.in then go to MCA Services, Download Company forms. Below is detail procedure for Filing of Form CHG 1 with ROC for Charge Creation.
When any company borrows secured loan from any bank or financial institutions, a board meeting needs to be conducted by directors of Company for Intimating the same to ROC within 30 days from the date of creation of charge.
Form CHG-1 needs to be filed with ROC along with following documents-
Following information is required to be filled in form CHG-1
The fees for creation of Charge CHG-1 are provided as per the companies (Registration of offices and Fees) Rules, 2014
|Nominal Share Capital||Fees applicable|
|Less than 1,00,000||Rs 200|
|1,00,000 to 4,99,999||Rs 300|
|5,00,000 to 24,99,999||Rs 400|
|25,00,000 to 99,99,999||Rs 500|
|1,00,00,000 or more||Rs 600|
In case company not having a share capital, the fee for intimating the Creation or Modification of Charge by the company to the Registrar is Rs.200 per document.
|Period of Delay||Fees Applicable|
|Up to 30 days||2 times of normal fee|
|More than 30 days and up to 60 days||4 times of normal fee|
|More than 60 days and up to 90 days||6 times of normal fee|
|More than 90 days and up to 180 days||10 times of normal fee|
|More than 180 days||12 times of normal fee|
Where any charge form CHG-1 is not filled within 300 days (30 days Plus 270 days as per sec 441 of the Companies Act, 2013) from the date of its creation or modification the Registrar shall not register the same unless the delay is condoned by the Central Government. Without Condonation of delay charge cannot be registered with ROC.