Form CHG-1 Filing for Charge Creation in India

Form CHG-1 is filed on the MCA portal under Sections 77, 78, and 79 of the Companies Act, 2013, and Rule 3(1) of the Companies (Registration of Charges) Rules, 2014, to register the creation or modification of a charge on a company’s assets (other than debentures). It creates a transparent public record that legally protects the lender’s interest over pledged collateral. For foreign companies, Section 384(4) extends these Chapter VI provisions mutatis mutandis.

Under Section 2(16), a “charge” is any interest or lien created on a company’s property or undertakings as security, and includes a mortgage. It covers both tangible assets (land, machinery) and intangible assets (receivables, intellectual property), whether located in India or outside. A company may have multiple charges on the same asset, provided the existing charge holder gives consent.

Every company incorporated under the Companies Act, 2013, or any prior law, that creates or modifies a charge in favour of a bank or financial institution must file CHG-1 — this includes private limited, public limited, and One Person Companies. Foreign companies must file with the ROC, Delhi, as Section 384(4) extends charge registration requirements to them. The obligation applies regardless of whether the asset is situated in India or outside.

CHG-1 covers all charge creation or modification except those created specifically for the issue of debentures — it includes hypothecation, equitable mortgage, registered mortgage, pledge, lien, and SARFAESI-related ARC assignments. It also applies when a company acquires property that is already subject to a charge. For debenture-related charges, Form CHG-9 must be used instead.

Form CHG-2 is the Certificate of Registration of Charge issued by the ROC under Sections 77(1) and 78 upon successful processing of CHG-1. It assigns a unique Charge Identification Number and is definitive proof of the lender’s registered security interest and priority over pledged assets. The Charge ID in CHG-2 is also required for any future modification (CHG-1), satisfaction (CHG-4), or receiver appointment (CHG-6).

Under Section 77(1) of the Companies Act, 2013, the company must file CHG-1 with the ROC within 30 days of the charge creation or modification date. For all charges created on or after 2 November 2018, this 30-day clock starts from the date the charge instrument is formally executed.

Filing within 30 days attracts only the normal ROC fee. Filing on day 31–60 attracts an additional fee of 3× normal (Small Companies and OPCs) or 6× normal (all other companies). Filing on day 61–120 further adds an ad valorem fee of 0.025% of the charge amount (max ₹1 lakh) for Small Companies/OPCs, or 0.05% (max ₹5 lakhs) for other companies — payable on top of the normal and additional fees.

For charges created on or after 2 November 2018, the MCA instruction kit explicitly states: filing is allowed only up to T+120 day,s and condonation is not available. Beyond 120 days, the MCA portal blocks filing entirely, and the charge becomes permanently void against the liquidator and all other creditors under Section 77(3) — there is no CHG-8 remedy for post-November 2018 charges.

Yes — under Section 78, if the company fails to register within 30 days, the charge holder may file CHG-1, but only after the initial 30-day company window has expired. The ROC notifies the company within 14 days; if the company does not respond, the ROC allows registration on payment of applicable fees. The charge holder is entitled to recover all filing costs from the defaulting company.

The additional fee is a fixed multiplier of the normal ROC fee (3× for Small/OPC; 6× for others) applicable for delays of up to 30 days beyond the deadline (day 31–60 from creation). The ad valorem fee is percentage-based — 0.025% (max ₹1 lakh) for Small/OPC and 0.05% (max ₹5 lakhs) for others — and kicks in for delays beyond 60 days (day 61–120). Both charges are cumulative when filing falls in the ad valorem window.

Under the Companies (Registration of Offices and Fees) Rules, 2014, the normal fee for Indian companies ranges from ₹200 (share capital below ₹1 lakh) to ₹600 (₹1 crore or more). Companies without share capital pay ₹200 flat; foreign companies pay ₹6,000. This normal fee applies without any multiplier only when CHG-1 is filed within the 30-day window.

The ad valorem fee is calculated on the total maximum amount secured by the charge (Field 10a of CHG-1), not on the disbursed loan amount. For companies other than Small/OPC, it is 0.05% of the secured amount, capped at ₹5,00,000 — so a ₹10 crore loan attracts ₹50,000 in ad valorem fees, while a ₹100 crore loan hits the ₹5 lakh cap regardless of size.

Yes — Small Companies (as defined under Section 2(85)) and OPCs pay 3× normal (vs 6× for others) an additional fee, and 0.025% ad valorem, capped at ₹1 lakh (vs 0.05% capped at ₹5 lakhs for others). These concessions reduce the financial impact of accidental delays for eligible smaller businesses.

After submitting CHG-1, an SRN is generated. The DSC-affixed PDF must be uploaded within 15 days of SRN generation, and fees paid within 7 days of DSC upload (or filing due date + 2 days, whichever is earlier) — failing which the SRN is cancelled automatically. The company must restart the entire filing process, potentially falling into a higher-fee window or, critically, breaching the 120-day outer limit.

STP mode applies when both the company and charge holder digitally sign — the form is auto-approved without manual intervention, and there is no provision for resubmission. Non-STP mode applies when only the charge holder signs — the ROC processes it manually and seeks a response from the company. Companies should always aim for STP mode to ensure the fastest, cleanest approval.

For Indian companies, the form may be signed by a Director (DIN), Manager, CEO, CFO, or Company Secretary (membership number), or an IRP/RP/Liquidator if the company is under CIRP or liquidation. For foreign companies, an authorised representative signs. The DSC must be registered on the MCA portal against the signatory’s DIN, PAN, or membership number.

Professional certification by a practising CA, CMA, or CS is mandatory for all companies except OPCs and Small Companies, for whom it is optional. The certifying professional digitally signs the form using their valid DSC and quotes their membership or CP number. This certification safeguards the accuracy of charge particulars on the public MCA register.

All attachments must be in PDF or JPG format only. Each individual file must not exceed 2MB, and the total submission size must not exceed 10MB. The instrument of charge creation or modification is a mandatory attachment; for acquired property already subject to a charge, the acquisition instrument must also be attached. Up to five optional attachments may be added.

In Non-STP mode, if the ROC marks the form “Resubmission Required”, the company must correct and resubmit — including re-uploading the DSC-affixed PDF — within T + 15 days of the resubmission notice. After this window, a fresh filing is required. STP-mode filings have no resubmission provision; errors in auto-approved STP filings require a separate rectification process.

A Charge ID is a unique identifier assigned by the MCA upon issuance of Form CHG-2. It must be quoted for all future charge-related filings — modification (CHG-1), satisfaction (CHG-4), or receiver appointment/cessation (CHG-6). Banks and financial institutions also use it to conduct charge searches on the public MCA register before approving new credit facilities.

Yes — the Companies Act, 2013, and the MCA instruction kit confirm that multiple charges on the same asset are permitted, provided the existing charge holder consents. In such cases, CHG-1 requires disclosure of consortium financing, joint charge status, and pari passu ranking; the total extent of the charge across all holders must not exceed 100%.

Under Section 79, when a company acquires charged property, the Section 77 registration obligation applies to the acquiring company within 30 days of acquisition. CHG-1 must be filed with both the original charge instrument and the acquisition instrument attached; the existing Charge ID (Field 12(d)) and the acquisition date must also be disclosed.

CHG-1 also covers modification of charges in favour of an Asset Reconstruction Company (ARC) or assignee under the SARFAESI Act, 2002 via Field 6(a). In such cases, the ARC or assignee’s PAN must be provided, and they must digitally sign the form as an additional signatory alongside the company.

Yes. An unregistered charge is invisible on the MCA’s public Register of Charges, raising red flags during due diligence by banks and NBFCs. Future lenders may decline credit, demand higher security, or impose stricter terms. More critically, an unregistered charge is void against the liquidator and all creditors under Section 77(3), permanently stripping the lender of secured-creditor status.

Setindiabiz handles the complete CHG-1 filing process through its panel of practising Company Secretaries — from board resolution drafting and charge instrument review to MCA V3 portal submission, DSC co-ordination, ROC fee payment, and professional certification. The focus is always on STP-mode filing for faster approval, with post-filing tracking until Form CHG-2 is issued within the 30-day statutory deadline under Section 77.