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.
- 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.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 charge through the company to the Registrar is Rs.200 per document.
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 below-mentioned documents are required to get attached to 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 the Instruction Kit of MCA CHG-1 Form
