Company · Debt & charges
We took a loan against company assets — what's this CHG-1 the bank wants?
The short answer
When a company borrows against its assets, the security interest — the 'charge' — must be registered with the ROC in CHG-1 within 30 days of creation. This is one of the hardest deadlines in company law: an unregistered charge is void against the liquidator and other creditors, which is why lenders chase it. Late? A condonation window with escalating fees exists, and beyond it you're at the Regional Director's door with CHG-8.
What gets filed with MCA
Within 30 days of creation or modification. Condonable up to 60 days with additional fee; up to 120 days with a further fee under Section 77(1).
Section 77, Companies Act 2013; Rule 3, Companies (Registration of Charges) Rules 2014
Filed when the 120-day condonable period under Section 77(1) has lapsed. NCLT has discretion on timeline.
Section 87, Companies Act 2013
Within 30 days of the creation of the debenture trust deed or charge.
Section 77(3), Companies Act 2013
The paperwork nobody tells you about
Statutory formats that never touch the MCA portal — but an ROC inspection or due diligence will ask for every one of them.
Company's own register of charges, maintained at the registered office
Section 85, Companies Act 2013 read with Rule 10, Companies (Registration of Charges) Rules, 2014
Resolution approving the borrowing and creation of security
Section 179(3), Companies Act 2013
The sequence
- 1Board resolution approving the borrowing and security
- 2Execute the loan/security documents with the lender
- 3File CHG-1 within 30 days of creating the charge (CHG-9 for debentures)
- 4Update the CHG-7 register; give the lender the registration certificate
Do it with us — or check it yourself first
Questions founders actually ask
What if 30 days pass?
The Registrar can allow registration on payment of additional fees within the statutory condonation window; beyond that the company needs the Regional Director's condonation through CHG-8. The longer the delay, the more expensive and discretionary it gets.
Does a vehicle loan or equipment lease need CHG-1?
Any security interest on company property or assets created to secure borrowing is registrable — hypothecation of vehicles and machinery included. Pure unsecured borrowing creates no charge.
Why does the bank care more than the ROC?
Because an unregistered charge is void against the liquidator and other creditors — the lender loses priority, not the company. That's why disbursal often waits for the CHG-1 SRN.
Last verified 2026-08-24 against MCA V3 records and ICSI reference material. Form-level deadlines and penalties live on the linked form pages and update there.