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.

Due Date

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.

Fee Details

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

Documents Required

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

Application Procedure

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
Margin
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)