Creation/Modification of Charge – Form CHG 1
Form CHG 1 – Creation/Modification of Charge
All the companies need to file particulars for registration of charges created or modified within the specified period to concerned Registrar of Companies. Every charge that is created by the company is required to be filed in Form CHG-1. The charges can be created on various types of assets situated in or outside of India and may create in favour of lenders such as Banks or Financial assistance. In this article, we will look at the form of CHG-1 in detail.
Latest form to be used – update on 30th April 2019
With effect from 1st August 2019, the latest form to be used. The latest form can be accessed here (Pages 3 to 8).
Laws Governing the Form
The form CHG 1 is required to be filed pursuant to Section 77, 78, 79 and Section 384 of Companies Act, 2013 and Rule 3(1) of the Companies Rules, 2014.
Section 77 of the Companies Act
The section 77 of companies act states that it is the duty of every company creating a charge on its property or assets or any of its undertakings, to register the particulars of the charge in a prescribed format. Such charges have to be reported to the Registrar within thirty days of its creation.
The company or charge holder can file the form CHG 1 only after 30 days from the date of creation of charges.
- In case the form CHG 1 is filed by the charge holder beyond 30 and within 300 days from the date of charge creations or modification of delay is required to be filed in the Form CHG-8 after filing this eForm and this Form will be processed by the ROC office after the order of Central Government for approval for condonation of delay in Form INC.28 has been filed.
- In case the form CHG 1 is filled by the company or the charge holder beyond 300 days from the date of charge modification or creation, then the application to Government for condonation of delay need to be filed in the Form CHG 8 after filing this eForm and this Form will be processed by the ROC after order of Central Government for approval for condonation of delay in the Form INC.28 has been filed.
The fee details for intimating the Creation or Modification of Charge by the company to the Registrar is tabulated here. The fee rates are provided as per the companies (Registration of offices and Fees) Rules, 2014
Fee for Companies having Share Capital
|Sl.No||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 for Company not having Share Capital
In case company not having a share capital, the fee for intimating the Creation or Modification of Charge by the company to the Registrar is Rs.200 per document.
Additional Fee Details
|Sl.No||Period of Delays||Fee Applicable|
|1||Up to 30 days||2 times of normal fee|
|3||More than 30 days and up to 60 days||4 times of normal fee|
|4||More than 60 days and up to 90 days||6 times of normal fee|
|5||More than 90 days and up to 180 days||10 times of normal fee|
|6||More than 180 days||12 times of normal fee|
The following documents have to be attached with the Form CHG 1:
- Instruments of creation or modification of charges such as Sanction letter or Loan agreement
- Particulars of all joint charge holders
Fill all the details in the form CHG 1 mentioned above along with the documents
Details required for filing the Form CHG 1
- Charge ID (Only in case of a modification of charge)
- Nature, description and brief particulars of the instruments creating or modifying the charge
- Details of whether the charge created in India or outside
- Type of charge
- Details of charge holders such as Category, Name, Address, Email ID and PAN
- Amount secured by the charge as per the instrument of charge
- Detailed particulars of the principal terms and conditions and extent and operation of the charge
- Rate of interest
- Repayment term in moths
- Terms of repayment
- Nature of facility
- Date of disbursement
- Extent and operation of the charge
- Particulars of the property charged
Get the form digitally signed from Directors and thereafter attach DSC of the Charge Hoder as declaration and practising profession for verification.
File form CHG 1 to the registrar of companies
The registrar will grant the certificate of registration of such change in Form CHG 2 (Creation) and Form CHG 3 (modification)