Charge Creation Filing
Register a lender’s security over company assets within the thirty-day window the Act allows.
When a company borrows against its assets, the security the lender takes is a charge, and it must be registered with the Registrar of Companies. Registration is what makes the charge effective against a liquidator and against other creditors.
The deadline is short and the consequence of missing it is severe. An unregistered charge is void against the liquidator and other creditors in a winding up, which means the lender loses its security and ranks as an unsecured creditor.
What this costs
Charge Setup
₹4,654 plus GST
+ ₹600 government fee, payable at actuals
- MCA Form preparation
- Charge Creation Certificate
The thirty-day rule and what follows it
- Form CHG-1 must be filed within thirty days of creating the charge
- The Registrar may allow a further thirty days on payment of additional fees
- Beyond that, a further sixty days is possible on payment of ad valorem fees
- These extended windows apply to charges created on or after the commencement of the relevant provisions
- Once the outer limit passes, registration requires an application for condonation of delay
What has to be registered
- Charges on immovable property, wherever situated
- Charges on movable property, including plant and machinery
- Floating charges on the undertaking or any of its property
- Charges on book debts
- Charges on intangible assets such as goodwill, patents and trademarks
- Charges on calls made but not paid
Whose duty it is
The primary obligation rests on the company. But if the company does not file, the Act permits the charge holder to register it and recover the fees from the company.
In practice lenders monitor this closely, because it is their security at stake. Where a lender discovers a charge unregistered, they will usually file it themselves rather than rely on the borrower.
How we handle it
- 1 Reviewing the security We examine the instrument to identify what is being charged and on what terms, since the form must reflect it accurately.
- 2 Checking authorisation We confirm the board and, where borrowing limits are exceeded, the shareholders have authorised it.
- 3 Preparing CHG-1 The form is prepared with the particulars of the charge and the property.
- 4 Filing within thirty days The form is filed with the instrument attached and signed by the company and the charge holder.
- 5 Certificate of registration The Registrar issues the certificate in Form CHG-2, which is the lender’s evidence of a registered charge.
- 6 Register of charges The company’s own register of charges is updated, which the Act separately requires.
Frequently asked questions
What happens if a charge is not registered?
It is void against the liquidator and other creditors in a winding up. The lender loses its priority and ranks as an unsecured creditor, which is why lenders watch this closely.
Who is responsible for filing?
The company primarily. If it fails to, the charge holder may register the charge itself and recover the fees from the company.
What if the thirty days have passed?
Extended windows are available on payment of additional and then ad valorem fees. Beyond those, an application for condonation of delay is required, which is discretionary.
Does a change in the charge terms need filing?
Yes. Modification of a registered charge is filed in Form CHG-1 in the same way, within the same timelines.
What happens when the loan is repaid?
File Form CHG-4 for satisfaction of the charge within thirty days of repayment, so the charge is released from the company’s index. Leaving it on record obstructs future borrowing.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about Charge Creation Filing
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
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