Easy Guide to File Form CHG 1 Charge Creation/Modification

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.

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    Form CHG1 Using Date

    With effect from 1st August 2019, the latest form would be utilised.

    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.

    • When the form CHG 1 gets furnished via the charge holder above 30 and within 300 days from the date of charge creation, or late revision would need to get filled in the Form CHG-8 post to furnishing the same e-form and the same form would be processed via ROC office after the order of the central government for the approval for the condonation of late in Form INC.28 would get furnished.
    • For the condition when the form CHG 1 would get furnished via the company or the charge holder above 300 days from the date of charge transformation, the application to the Government for condonation of delay requires to be filed in Form CHG 8 post-filing the same eForm and the identical Form shall get processed via ROC post to the order of Central Government for permission for condonation of delay in the Form INC.28 has been filed.

    Fee Information of Form CHG 1 Charge

    Below mentioned is the information on the fee for the 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 been given as.

    Fee Regarding Having Share Capital of Companies

    S.NNominal Share CapitalFee Applicable
    1Less than 1,00,000Rs.200
    21,00,000 to 4,99,999Rs.300
    35,00,000 to 24,99,999Rs.400
    425,00,000 to 99,99,999Rs.500
    51,00,00,000 or moreRs.600

    Fee Regarding Not Having Share Capital of Companies

    When the company does not secure the share capital then the fee for modification of charge through the company to the Registrar is Rs.200 per document.

    Information of the Additional Fee Details

    S.NPeriod of DelaysFee Applicable
    1Up to 30 days2 times of normal fee
    2More than 30 days and up to 60 days4 times of normal fee
    3More than 60 days and up to 90 days6 times of normal fee
    4More than 90 days and up to 180 days10 times of normal fee
    5More than 180 days12 times of normal fee

    Documents Needed for the Form CHG 1

    The below-mentioned documents are required to get attached with the Form CHG 1:

    • The modification of charges like Sanction letters or Loan agreement
    • The details of all the joint charge holders

    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 of charge)
    • Nature, description, and brief details of the instruments forming or changing the charge.
    • The information if 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 and 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).

    Download Instruction Kit of MCA CHG-1 Form

    Download MCA CHG-1 Form in PDF Format

    Comments ( 1 )
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    • PADMA PREETHA A

      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.