e-Form CHG-1
Application for registration of creation, modification of charge (other than those related to debentures)
Law
1. It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within 30 days of its creation.
Provided that the Registrar may, on an application by the company, allow such registration to be made:
Provided further that if the registration is not made within the period specified:
Provided also that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered.
Provided also that this section shall not apply to such charges as may be prescribed in consultation with the Reserve Bank of India.
2. Where a charge is registered with the Registrar under sub-section (1), he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed to the company and, as the case may be, to the person in whose favor the charge is created.
3. Notwithstanding anything contained in any other law for the time being in force, no charge created by a company shall be taken into account by the liquidator appointed under this Act or the Insolvency and Bankruptcy Code, 2016, as the case may be, or any other creditor unless it is duly registered under sub-section (1) and a certificate of registration of such charge is given by the Registrar under sub-section (2).
4. Nothing in sub-section (3) shall prejudice any contract or obligation for the repayment of the money secured by a charge.
Section 78
Where a company fails to register the charge within the period of 30 days referred to in sub-section (1) of section 77, without prejudice to its liability in respect of any offence under this Chapter, the person in whose favor the charge is created may apply to the Registrar for registration of the charge along with the instrument created for the charge, within such time and in such form and manner as may be prescribed and the Registrar may, on such application, within a period of 14 days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed:
Provided that where registration is effected on application of the person in whose favor the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge.
Section 79
The provisions of section 77 relating to registration of charges shall, so far as may be, apply to:
Section 384
- The provisions of section 71 shall apply mutatis mutandis to a foreign company.
- The provisions of section 92 shall, subject to such exceptions, modifications and adaptations as may be made therein by rules made under this Act, apply to a foreign company as they apply to a company incorporated in India.
- The provisions of section 128 shall apply to a foreign company to the extent of requiring it to keep at its principal place of business in India, the books of account referred to in that section, with respect to monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to its business in India.
- The provisions of Chapter VI shall apply mutatis mutandis to charges on properties which are created or acquired by any foreign company.
- The provisions of Chapter XIV shall apply mutatis mutandis to the Indian business of a foreign company as they apply to a company incorporated in India.
Rule 3
- For registration of charge as provided in sub-section (1) of section 77, section 78 and section 79, the particulars of the charge together with a copy of the instrument, if any, creating or modifying the charge in e-Form No CHG-1 (for other than Debentures) or e-Form No CHG-9 (for debentures including rectification), as the case may be, duly signed by the company and the charge holder shall be filed with the Registrar within a period of 30 days of the date of creation or modification of charge along with the fee.
- If the particulars of a charge are not filed in accordance with sub-rule (1), such creation or modification shall be filed in e-Form No CHG-1 or e-Form No CHG- 9 within the period as specified in section 77 on payment of additional fee or advalorem fee as prescribed in the Companies (Registration Offices and Fees) Rules, 2014.
- Where the company fails to register the charge in accordance with sub-rule (1) and the registration is effected on the application of the charge-holder, such charge-holder shall be entitled to recover from the company the amount of any fees or additional fees or advalorem fees paid by him to the Registrar for the purpose of registration of charge.
- A copy of every instrument evidencing any creation or modification of charge and required to be filed with the Registrar in pursuance of section 77, 78 or 79 shall be verified as follows:
Purpose of e-Form CHG-1
All the companies are required to file particulars for registration of charges created or modified within specified period to concerned Registrar of Companies. The charge can be created on various types of assets situated in or outside India and may be created in favor of lenders such as Banks or financial institutions. Every charge that is created or modified by the company is required to be filed in e-Form CHG-1 to concerned RoC in case of Indian Company and RoC – Delhi in case of a foreign company.
Processing Type
The form will be auto approved (STP) in case the e-Form is signed by the company and charge holder and processed by the office of Registrar of Companies. In case form is filed by charge holder beyond 30 days of charge creation or modification (Non STP).
ROC Fees
1. Fee for filing e-forms or documents in case of company have share capital
| Nominal Share Capital | Fee Applicable Rs. |
|---|---|
| <1 lakh | 200 |
| 1 lakh – 5 lakh | 300 |
| 5 lakh – 25 lakh | 400 |
| 25 lakh – 100 lakh | 500 |
| >100 lakh | 600 |
2. fee for filing e-forms or documents in case of company not have share capital – Rs 200 In case of foreign company – Rs 6,000
3. Additional Fees
| Period of delay | Fee Applicable Rs. |
|---|---|
| Up to 30 days | 2 times of normal fees |
| More than 30 days and up to 60 days | 4 times of normal fees |
| More than 60 days and up to 90 days | 6 times of normal fees |
| More than 90 days and up to 180 days | 10 times of normal fees |
| More than 180 days | 12 times of normal fees |
4. The following additional fees or advalorem fees, as the case may be, shall be payable up to 31st July, 2019, by all companies
| Period of delay | Fee Applicable Rs. |
|---|---|
| Up to 30 days | 2 times of normal fees |
| More than 30 days and up to 60 days | 4 times of normal fees |
| More than 60 days and up to 90 days | 6 times of normal fees |
5. The following additional fees or advalorem fees as the case may be, shall be payable with effect from 1st August, 2019
| Period of delay | Small Companies and One Person Company | Other than Small Companies and One Person Company |
|---|---|---|
| Up to 30 days | 3 times of normal fees | 6 times of normal fees |
| More than 30 days and up to 90 days | 3 times of normal fees plus an ad valorem fee of 0.025% of the amount secured by the charge, subject to the maximum of Rs 100,000/- | 6 times of normal fees, plus an ad valorem fee of 0.05% of the amount secured by the charge, subject to the maximum of Rs 500,000/- |