Every company is required to intimate ROC whenever the company creates charge on its properties for getting funds from public financial institutions/banks. This intimation needs to be provided to ROC through filing of FORM CHG-1. This form is called “REGISTRATION OF CHARGES”.
Form CHG-1 is a mandatory statutory submitting required under the Companies Act, 2013, for registering the introduction or change of costs on employer property. Companies must file this form with the Registrar of Companies within 30 days of fee creation or change. The form applies to costs on various assets inclusive of belongings, machinery, and stock, created in favor of banks, monetary establishments, or different lenders. Proper submitting guarantees legal reputation of security interests and compliance with company regulations, shielding both business enterprise and creditor interests effectively.
CHG is basically an abbreviation of charge. A company may get the funds form banks or public financial institution by mortgaging certain assets of company. In such situation, a company must file form CHG-1 to intimate the ROC about such charges created on companies assets by filing form CHG-1. A company must execute mortgage deed while mortgaging property with bank.
CHG -1 form is Application for registration of creation, modification of charge (other than those related to debentures). This form needs to be filed when company avails the loan from banks or public financial institution by mortgaging its property.
When submitting Form CHG-1, the following details must be provided:
Form CHG 1 is to be filed by the charge holder within 30 days of its creation. A company can get extension to file this form by specifically applying for extension which shall not be allowed beyond the period of 300 days. Any modification of charge is required to be filed in the Form CHG-8. Any delay in filing this Forms, a company must get approval for condonation of delay by filing Form INC.28
The fee details for intimating the Creation or Modification of Charge by the company to the Registrar is based on the share capital of company. The fee rates are provided as per the companies (Registration of offices and Fees) Rules, 2014.
