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Company Law

Charges Filing on MCA (Form CHG-1 / CHG-4)

Registration of charges created on a company's assets for secured borrowings — Form CHG-1 for creation or modification, CHG-4 for satisfaction, and CHG-8 for condonation of delay, under ss.77–82 of the Companies Act 2013.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Discuss with usTypical timelineCharges Filing

Charge registration under ss.77-82 Companies Act 2013: CHG-1 within 30 days of creation/modification, CHG-4 for satisfaction within 30 days, CHG-8 for condonation — or the charge is void against the liquidator and other creditors.

What is included
  • • Charge identification — creation, modification, or satisfaction from the loan/sanction documents
  • • CHG-1 preparation and filing with instrument copies and the charge-holder's details
  • • CHG-4 preparation and filing with the charge-holder's no-objection
  • • CHG-8 condonation application where the 30/60-day window has lapsed
  • • Stamp-duty assessment on the charge instrument (state-specific)
  • • ROC charge-register verification and certificate follow-up
Documents required
  • • Loan/sanction letter and the charge instrument (mortgage/deed of hypothecation)
  • • Charge-holder (lender) details — name, PAN, address, registration/incorporation
  • • Board resolution authorising the borrowing
  • • Company incorporation certificate and CIN
  • • NOC from the charge-holder (for CHG-4 satisfaction)
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Section 77 of the Companies Act 2013 (registration of charges)
  • • Section 78 of the Companies Act 2013 (application for registration)
  • • Section 82 of the Companies Act 2013 (satisfaction of charge)
  • • Rule 3 of the Companies (Registration of Charges) Rules 2014
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Assess

Identify the charge

We review the loan and security documents to identify the charge — creation, modification, or satisfaction — and the exact property/assets covered.

Step 2Draft

Prepare the instrument set

We assemble the charge instrument, board resolution, and charge-holder details, and compute the stamp duty on the amount secured.

Step 3File

File CHG-1 on MCA21

We file Form CHG-1 on the MCA21 portal within the window (30 days; 60 days with additional fee) and track the SRN.

Step 4Register

Obtain the registration certificate

We follow up with the ROC for the charge-registration certificate and confirm the entry in the ROC charge register.

Step 5Satisfaction

Close the file on satisfaction

When the loan is repaid, we file CHG-4 with the lender's NOC within 30 days of satisfaction and keep the register clean.

AEO summary

When a Private Limited company borrows against its assets, the charge must be registered with the ROC under s.77 Companies Act 2013 — Form CHG-1 within 30 days of creation (60 days with additional fee, or condonation via CHG-8). Satisfaction is filed in CHG-4 within 30 days. An unregistered charge is void against the liquidator and other creditors — the lender's security disappears.

What counts as a registrable charge

Section 77 of the Companies Act 2013 covers every charge on a company's property or assets — mortgages on immovable property, hypothecation of stock and receivables, pledges of movable assets, and floating charges. The registration obligation applies from the moment the charge is created, not from when the money is drawn. Modification of an existing charge (a changed limit, tenor, or asset pool) is also a registrable event requiring a fresh CHG-1.

The instrument and the filing are separate documents. The mortgage or hypothecation deed carries the stamp duty (state-specific, on the amount secured); the CHG-1 filing carries the MCA fee under the Companies (Registration Offices and Fees) Rules 2014 and the instrument must be attached. The ROC issues a certificate of registration that the lender and any future creditor rely on.

  • • Registrable — mortgages, hypothecation, pledge, floating charges (s.77)
  • • Window — CHG-1 within 30 days (s.77), extendable to 60 with additional fee, condonation beyond 120 days under s.87
  • • Instrument — attached to the filing, stamp duty state-specific
  • • Modification — a changed limit/tenor/asset pool is a fresh CHG-1
  • • Public register — the ROC charge register is what lenders and investors check

Why the register matters beyond the filing

The ROC charge register is the first thing a prospective lender checks: it shows what is already secured and in what order, and an unregistered charge silently puts the new lender ahead of the old one — which is exactly why s.77(3) makes the unregistered charge void against the liquidator and other creditors. In an insolvency, an unregistered secured lender becomes an unsecured creditor, and its recovery drops to the unsecured pool.

For the company, the cost of the missing filing shows up twice: at drawdown (the lender's lawyers flag it and the facility stalls) and at exit (investors discount the company because the security picture is unclear). The satisfaction filing matters equally — a repaid loan with a live CHG-1 entry makes the register lie, and the company looks over-leveraged. CHG-4 keeps the register true.

  • • Unregistered charge — void against liquidator/creditors (s.77(3))
  • • Lender check — charge register read before every drawdown
  • • Investor check — security picture is part of diligence
  • • Satisfaction — CHG-4 within 30 days of repayment keeps the register true

Government fees

Fee breakdown

ItemFeeNotes
CHG-1 / CHG-4 filing feePer Rule 12(1), Companies (Registration Offices and Fees) Rules 2014 fee tableFee varies with the amount secured by the charge.
Delay fee (past 30 days)Additional fee under s.403 (₹100/day) plus progressive ad-valorem fees per the fee table — no cap until filedFiling within 60 days is possible with the additional fee; beyond that, CHG-8 condonation.
Stamp duty on charge instrumentPer the state Stamp Act applicable to the charge (varies by state)Assessed on the amount secured, varies by state.

Timeline

Typical turnaround

Typical timeline usually means a 1–5 working days per form turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

MCA fees per the Companies (Registration Offices and Fees) Rules 2014; delay fees are progressive.

Related services

Keep the company moving

Satisfaction of charge

CHG-4 due within 30 days of the loan being repaid — keeps the ROC charge register true.

Company Compliance

Ongoing company compliance — annual ROC filings, statutory registers, and event-based MCA filings.

NCD / Debenture Issue

NCD issuance creates a debenture charge — the CHG-1 filing is part of the closing checklist.

Bank Credit / CMA

Bank credit facilities secured by charges — CMA preparation and the connected charge registration.

Company Law Advisory

Company-law advisory across the Companies Act 2013 — borrowings, charges, and board governance.

FAQ

Frequently asked questions

What is a charge and when must it be registered?
A charge is a security interest created by a company over its assets (movable or immovable) for a borrowing — a mortgage, hypothecation, or pledge. Under s.77 of the Companies Act 2013, every charge created by a company must be registered with the ROC within 30 days of creation (60 days with the additional fee), in Form CHG-1 under Rule 3 of the Companies (Registration of Charges) Rules 2014. The register of charges is public — lenders check it before lending, and investors check it during diligence.
What happens if a charge is not registered in time?
An unregistered charge is void against the liquidator and other creditors under s.77(3) of the Companies Act 2013 — meaning the lender's security silently disappears in an insolvency, and the lender's dues rank as unsecured. The company also faces penalty exposure for the default. The practical consequence: the lender's own legal team catches the missing registration at disbursal review, and the facility stalls. Condonation through CHG-8 is possible for genuine delay, but it costs more and takes longer than filing inside the window.
What is the difference between CHG-1 and CHG-4?
CHG-1 is the return of creation or modification of a charge — filed within 30 days of the charge being created (or modified) under s.77 read with s.78 of the Companies Act 2013. CHG-4 is the return of satisfaction — filed within 30 days of the charge being satisfied, i.e. the loan repaid and the security released — under s.82(1), with a no-objection from the charge-holder (the lender). Both entries live in the public ROC charge register.
What is CHG-8 and when is it needed?
CHG-8 is the application for condonation of delay in registering a charge — filed where the 30-day (or 60-day with fee) window has passed, under the Companies (Registration of Charges) Rules 2014. The ROC condones the delay on being satisfied that the delay was accidental or due to inadvertence or some other sufficient cause. Condonation is discretionary, takes longer than a normal filing, and carries the full additional fee — so it is a remedy, not a plan.
What is the timeline to register a charge?
Form CHG-1 must be filed within 30 days of the charge creation under s.77 read with s.125(1) of the Companies Act 2013; a further 30 days (total 60) is available on payment of the additional fee, and beyond 120 days condonation is obtained from the ROC/Central Government under s.87. Satisfaction in CHG-4 is due within 30 days of the charge being satisfied, with the lender's NOC. Once registered, the ROC issues a certificate and the charge appears on the public register — which is what lenders and investors verify.
Does a charge on a bank loan need separate filing from the loan agreement?
Yes — the loan agreement creates the debt, but the security (the charge over assets) is a separate legal event that triggers s.77 of the Companies Act 2013. A bank's sanction letter, mortgage, or hypothecation deed is the instrument; the CHG-1 filing with the ROC is what makes the charge enforceable against third parties. This is why the charge registration is a standard closing item in every secured loan drawdown.

Canonical reference: https://www.pvtltd.co/services/charges-filing-mca

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