Charge Under Companies Act

CHARGE REGISTRATION
UNDER
THE COMPANIES ACT, 2013
Registration of charge with RoC
• As per Section 77 of Companies Act, 2013,
Company has to create charge with the Registrar
within 30 days of creation of Charge.
• Responsibility to create charge is lies with
company.
• If company is not cooperating for registration of
charge bank can create charge unilaterally after
giving the proper 14 days notice to the borrowing
company.
• Charge Id should be feed in charge detail of
HCLM menu of CBS for particular security.
Section 77 (earlier S. 125, 132)
STAG PARTICULAR TIME PERIOD Days FEES
E
i. Registration of Within 30 days of 0+30 Normal Fees

Charge with Creation
ROC
ii. If Fails to file with within a period of 60 0+30+30 Normal Fees +

in 30, days days of such creation = 60 3 time Additional
Fees
iii. If Fails to file with Registrar may, on an 0+30+30+60 Normal Fees +

in 60, days application, allow = 120 3 time Additional
such registration to Fees
be made within a +Advalorem Fees
further period of 60
days. i.e. 120 days of
such creation
Section 82 (earlier S. 130)
• Provisions of Section 77(1) shall be mutatis
mutandis applicable to the full payment or
satisfaction of charge.
• On intimation, ROC may issue a show
cause to the Charge Holder.
• After 14 days of no objection,
memorandum of satisfaction is entered and
informed to the company.
• ROC also has the power u/s 83.
Online system of filing
• Comprehensive Form CHG 1 with attachments.
• Scanned copy All the documents executed for creation of
charge.
• Documents should be properly filled and duly executed
with proper stamp duty.
• Existing Charge ID is required for modification.
• Digital Signature of director needs to be registered.
• He should not be director of any defaulting company.
• Digital Signature of bank/FI official is mandatory.
• Digital Signature of professional is mandatory.
Online system of filing
• CS will upload this Comprehensive Form CHG 1

at MCA site, which is duly digitally sign by
borrower, banker & CS.
• CS will make applicable fee payment online by
credit card on internet banking.
• On successful submission of the eForm CHG-1,
SRN (Service Request Number) will be
generated
Registration
• Registration certificate & challan will be

generated depicting the details of the fees paid
by the user to the Ministry is generated
immediately by straight through process (STP)
from MCA.
• Certificate digitally signed by the ROC is issued.
• Communication is sent through e-mail.
Registration
• CHG 1 should be prepared Company Secretary,

preferably by bank approved panel CS.
• We give copy of documents to CS.
• Once CS filled CHG 1 then he will forward to bank
for verification.
• We need to verify all the details like sanction
amount, security detail, margin, interest rate,
repayment period form sanction letter properly
before affixing the Digital signature.
Guidelines for CHG 1
Effects of non-registration
• Charge becomes void against liquidator.
• Charge becomes void against creditor.
• Charge created later may get priority over
the unregistered charge.
• Penalty – Min Rs. 1 lac up to Rs. 10 lacs to
company and every officer in default
punishable with imprisonment up to 6
months or fine with min Rs. 25 thousand
up to Rs. 1 lac or both.
Inspection
• On the master data of MCA one can find

“index of charges”.
• Public can have access to all the form
CHG-1, CHG-4 registered with the MCA by
taking search/ inspection.
• Bank should take on record search report
prepared by a CS professional with a
reasonable interval to protect its interest.
Satisfaction of Charge
• A Company shall within a period of 30 days

from the date of payment or satisfaction in full
of any charge registered under Chapter VI,
give intimation of the same to the Registrar in
Form CHG-4.
• Registrar shall issue a certificate of
registration of satisfaction of charge in Form
CHG-5.
Satisfaction of Charge

Charge Under Companies Act

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CHARGE REGISTRATION

i. Registration of Within 30 days of 0+30 Normal Fees

ii. If Fails to file with within a period of 60 0+30+30 Normal Fees +

iii. If Fails to file with Registrar may, on an 0+30+30+60 Normal Fees +

• CS will upload this Comprehensive Form CHG 1

• Registration certificate & challan will be

• CHG 1 should be prepared Company Secretary,

• On the master data of MCA one can find

• A Company shall within a period of 30 days

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