Form CHG-1

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”.

Meaning of charge

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.

What is CHG-1 form

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.

details are required to file this form

-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

-Margin

-Extent and operation of the charge

-Particulars of the property charged

-Mortgage deed as an attachment to the form or any Instruments of creation or modification of charges such as Sanction letter or Loan agreement

When to file this form

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

What is the government fees to file chg-1

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.

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FAQS

What do we mean by charge?

Charge in general terms is basically an encumbrance created on a particular property of company to avail finance.

What are the documents to be attached with form CHG-1?

Instruments of creation or modification of charges such as Sanction letter or Loan agreement Particulars of all joint charge holders

Who needs to sign Form CHG-1?

The form CHG-1 has to be authorized by one director.

Which form is to be filed for satisfaction of charge?

Form CHG-4 is to be filed for communicating satisfaction of charge.

Which form is to be filed for creation of charge while taking loan from bank?

Form CHG-1 is to be filed for creation and any modification of charge.

What is the due date of filing Form CHG-1?

CHG 1 is required to be filed by the charge holder after 30days and within 300 days from the date of charge creations or modification of charge.

Who needs to certify the form CHG-1?

Form CHG-1 is to be certify by practicing CA/CS or CWA.