There is an obligation for all the companies to furnish the details of the registration of the charges made or revised within the particular duration to the related registrar of the companies. Every charge made by the company would need to get filed in Form CHG 1. The charges could be made on several kinds of assets located in or outside of India and might generate in favour of lenders like financial institutions or banks. We see the form of CHG 1 in depth.
Submit Query for CHG-1 Filing Software
Form CHG1 Using Date
Form CHG-1 has been migrated to the MCA V3 portal from January onwards.
Governing Laws for Form CHG 1
The form CHG 1 needs to be filed pursuant to Sections 77, 78, 79, and Section 384 of the Companies Act, 2013, and Rule 3(1) of the Companies Rules, 2014.
Read Also: New 3 MCA Amendments for Stakeholders Under Companies Act
MCA Companies Act of Section 77
Section 77 of the companies act mentioned that all companies have the obligation who make a charge on their property or assets or any of its undertakings to enrol the details of the charge in a specified format. These charges would need to be reported to the registrar within 30 days of their generation.
Filing Due Date of the Form CHG 1
Post to 30 days from the generation date of the charges, the company or the charge holder could furnish the form CHG 1.
Fee Information of Form CHG 1 Charge
Below is the information on the fee for the creation & modification of the charge via the company to the registrar. Under the Companies (Registration of offices and Fees) Rules 2014, the rate of the fee is given as.
Fee Regarding Having Share Capital of Companies
| S.N | Nominal Share Capital | Fee Applicable |
|---|---|---|
| 1 | Less than 1,00,000 | Rs.200 |
| 2 | 1,00,000 to 4,99,999 | Rs.300 |
| 3 | 5,00,000 to 24,99,999 | Rs.400 |
| 4 | 25,00,000 to 99,99,999 | Rs.500 |
| 5 | 1,00,00,000 or more | Rs.600 |
Fee Regarding Not Having Share Capital of Companies
When the company does not secure the share capital, then the fee for modification of the charge through the company to the Registrar is Rs.200 per document.
Fees for creation & modification of a charge in case of Foreign Company is Rs.6000.
Information of the Additional Fee Details
| Period of delay | Small Companies and One Person Company | Other than Small Companies and One Person Company |
|---|---|---|
| Up to 30 days | Three times normal fee | Three times the normal fee |
| More than 30 days and up to 90 days | In addition to a) and b), an ad valorem fee of 0.025 percent of the amount secured by the charge, subject to the maximum of INR One lakh. | In addition to a) and b), an ad valorem fee of 0.05 percent of the amount secured by the charge, subject to the maximum of INR Five lakhs. |
Documents Needed for the Form CHG 1
The documents mentioned below are required to be attached to the Form CHG 1:
- The modification of charges like Sanction letters or Loan agreements
- The details of all the joint charge holders
- Document creating or modifying the charge, such as a mortgage deed, hypothecation agreement, or loan agreement
The Process of Application for the Form CHG 1
Fill in all the information in the form CHG 1 specified above, including all the documents.
The Essential Information Needed to File the Form CHG 1
- Charge ID (Only in case of a transformation/modification of charge)
- Nature, description, and brief details of the instruments forming or changing the charge.
- The information on whether the charge was made in India or outside.
- The kind of charge
- The information of the charge holder is like Category, Name, Address, Email ID, and PAN.
- The amount made by the charge under the instrument of charge.
- The precise information of the principal terms and conditions, the charge’s extent and function.
- Interest rate
- Repayment term in months
- Terms of repayment
- Nature of utility
- Date of disbursement
- Margin
- Extent and operation of the charge
- Particulars of the property charged
Obtain the form digitally signed by the directors and post to that patch the DSC of the charge holder as declaration and practising the profession for the verification. Now file form CHG 1 to the registrar of the companies.
The registrar would provide the certificate of the registration of the same revision in Form CHG 2 (creation) and Form CHG 3 (modification).
We are failed to file CHG-1 before 120 days due to error in DSC updation in V3 Portal.
So we try to file Form CG-1. Its also failed . The reason is the form version that you are using is not latest. Please file fresh form and Submit it. As per this we submit fresh form but still its failed.
Pls share your comments for solving this problem.