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Need to Register a Charge on Company Assets in Kharagpur?
File Form CHG-1 with ROC within the 30-day statutory deadline. Expert assistance from board resolution to Charge ID issuance, starting at ₹3,999.
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Get end-to-end professional assistance with charge creation filing on the MCA V3 portal. Complete documentation, certification, and tracking included.
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Charge Creation Filing Package 2026
From ₹3,999 IncorpX professional fee for assistance
Scope, timelines, and next steps are shared after the initial assessment
Application support Expert support
Form CHG-1 Preparation and MCA Filing
Mandatory Expert Professional Certification
Board Resolution Drafting
Charge Instrument Review
DSC Association and Signing Support
Government Fee Payment Guidance
Charge ID and Registration Certificate
Post-Filing SRN Tracking
Mortgage, Hypothecation, Pledge Coverage
Dedicated Compliance Expert
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Charge creation filing is the mandatory registration of a security interest, such as a mortgage, hypothecation, or pledge, created on a company's assets with the Registrar of Companies by filing Form CHG-1 under Section 77 of the Companies Act, 2013, within 30 days of charge creation.
Form CHG-1 is the MCA-prescribed electronic form used to register the creation or modification of a charge on company assets with the Registrar of Companies under the Companies (Registration of Charges) Rules, 2014. The Registrar of Companies (ROC) is the statutory authority under the Ministry of Corporate Affairs responsible for maintaining the register of all charges under Section 81 and issuing charge registration certificates upon successful filing.
Every company in India, including those registered in Kharagpur, that borrows money against its assets must register the charge with the ROC within 30 days. Section 77 of the Companies Act, 2013 requires filing Form CHG-1 with details of the charge holder, the property charged, the amount secured, and the terms of the security. Failure to register makes the charge void against the liquidator and creditors under Section 80, meaning the lender loses secured creditor status. The penalty under Section 86 includes a fine of ₹1 lakh to ₹10 lakh on the company and imprisonment up to 6 months for officers in default. The filing process is 100% online via the MCA V3 portal and is identical for companies across all cities, including Kharagpur. IncorpX offers complete assistance for charge creation filing as part of our event-based ROC compliance services.
Legal Framework
Governing Law: Companies Act, 2013, Chapter VI (Sections 77 to 87) Rules: Companies (Registration of Charges) Rules, 2014 Filing Portal: MCA V3 Portal (www.mca.gov.in) Act Reference:Companies Act, 2013 on India Code
Parameter
Details
Governing Law
Companies Act, 2013 (Sections 77 to 87)
Regulator
Registrar of Companies (ROC), MCA
Key Form
Form CHG-1
Filing Deadline
30 days from charge creation date
Government Fee
₹200 to ₹5,000 (based on authorized capital)
Professional Fee
Starting at ₹3,999 (IncorpX)
Processing Time
5 to 7 working days
Penalty (Company)
₹1 lakh to ₹10 lakh (Section 86)
Penalty (Officers)
Imprisonment up to 6 months or fine ₹25,000 to ₹1 lakh
Types of Charges on Company Assets
Company law recognizes eight primary types of charges based on the nature of the asset and the manner in which security is created. Each type follows a distinct legal mechanism, but all require mandatory registration through Form CHG-1 with the ROC within 30 days. Section 79 also extends charge registration to charges acquired on property of a company.
Charge Type
Asset Class
Possession
Example
Common Use
Mortgage
Immovable property
May transfer to lender
Factory land, office building
Term loans, project finance
Hypothecation
Movable property
Borrower retains
Vehicles, machinery, inventory
Working capital, vehicle loans
Pledge
Movable property
Transfers to lender
Shares, gold, goods
Short-term finance, margin funding
Fixed Charge
Specific identifiable asset
Restricted dealing
Named machinery, land parcel
Asset-specific secured lending
Floating Charge
Class of changing assets
Borrower retains (until crystallization)
Stock-in-trade, book debts
Revolving credit, debenture trust
Pari Passu Charge
Shared asset (same rank)
Varies by charge type
Consortium bank lending
Multiple lender arrangements
Lien
Movable or immovable
Lender retains possession
Banker's lien on securities
Banking transactions
Second Charge
Already-charged asset
As per first charge terms
Additional loan on same property
Supplementary borrowing
Mortgage is a security interest created on immovable property such as land, buildings, or factory premises, where the borrower transfers an interest in the property to the lender as collateral. Mortgage deeds attract stamp duty of 3% to 7% depending on the state of execution.
Hypothecation is a security interest on movable property like vehicles, machinery, or inventory, where the borrower retains physical possession of the asset while granting the lender a right to seize it upon default. Hypothecation is the most common charge type filed for working capital loans in India.
Pledge is a security interest where the borrower transfers physical possession of movable assets, such as shares, gold, or goods, to the lender as collateral. The lender retains the asset until the loan is fully repaid, giving immediate physical control over the collateral.
Who Needs to File Form CHG-1?
Every company registered under the Companies Act, 2013 that creates a security interest on its assets must file Form CHG-1 within 30 days. This includes entities subject to private limited company compliance requirements. The filing obligation applies regardless of company size, turnover, or capital.
Entity Type
CHG-1 Required?
Governing Provision
Private Limited Company
Yes
Section 77, Companies Act, 2013
Public Limited Company
Yes
Section 77, Companies Act, 2013
One Person Company (OPC)
Yes
Section 77, Companies Act, 2013
Section 8 Company
Yes
Section 77, Companies Act, 2013
NBFC (as borrower)
Yes
Section 77, Companies Act, 2013
LLP
No
Not covered under Companies Act
Partnership Firm
No
Not covered under Companies Act
Sole Proprietorship
No
Not covered under Companies Act
Transactions requiring CHG-1 filing: Term loans secured by assets, working capital facilities with hypothecation, debenture issues with charge on assets, vehicle loans for company vehicles, foreign currency borrowings with security, and consortium lending with pari passu charges.
Important: LLPs and partnership firms are not covered under Chapter VI of the Companies Act, 2013. Only companies incorporated under the Companies Act must file Form CHG-1.
Benefits of Registering Charges with ROC
Timely charge registration through Form CHG-1 protects both the company and the lender. Filing within the 30-day deadline under Section 77 provides critical legal safeguards and ensures continued access to credit facilities.
Secured Creditor Status
Registered charge under Section 80 gives the lender priority over unsecured creditors during liquidation. Protection applies from the date of registration with the ROC.
Legal Compliance (Section 77)
Filing within 30 days fulfills the statutory mandate under the Companies Act, 2013. This avoids the ₹1 lakh to ₹10 lakh penalty under Section 86 and officer imprisonment up to 6 months.
Public Notice to Creditors
Registration serves as deemed notice to all third parties dealing with the company. Anyone can verify existing charges on the MCA portal using the company CIN at no cost.
Lender Confidence
Banks and NBFCs require charge registration as a pre-condition for loan disbursement. Timely CHG-1 filing ensures continued access to sanctioned credit facilities.
Priority in Liquidation
Registered charge holders receive payment before unsecured creditors during company liquidation or insolvency proceedings under the IBC.
Avoids Void Charge Risk
Unregistered charges become void under Section 80. Filing CHG-1 protects the security interest from being invalidated in winding-up or insolvency proceedings before the NCLT.
Prevents Condonation Delays
Filing within 30 days avoids the time-consuming and costly condonation process under Section 87, which requires additional government fees and 6x to 10x penalty charges.
Facilitates Future Credit Access
A clean charge registration history on MCA records signals financial discipline to future lenders. Banks review the company's charge register before sanctioning new loans.
Documents Required for Charge Creation Filing
Preparing the correct documentation before filing Form CHG-1 on the MCA portal is critical. A missing or mismatched document is the primary reason for rejection. Ensure you have a valid digital signature certificate (DSC) before starting the filing process.
For the Company:
Executed Charge Instrument - Loan agreement, mortgage deed, hypothecation agreement, or pledge agreement on appropriate stamp paper per state rates
Certified Board Resolution - Resolution authorizing borrowing and charge creation, specifying the director authorized to sign the filing
Company CIN and Registered Office Details - Current company master data from MCA records
Description of Charged Property/Assets - Complete details with valuation (if applicable)
Copy of Form CHG-7 Entry - Entry in company's register of charges as required under Section 85
For the Charge Holder:
PAN of Charge Holder - Individual PAN or entity PAN
CIN of Charge Holder - If the lender is a corporate entity (bank, NBFC)
Name, Address, and Contact Details - Complete charge holder identification
Amount Secured and Terms - Exact loan amount and repayment terms
For MCA Filing:
Digital Signature Certificate (DSC) - Class 3 DSC of the authorized signatory, registered on MCA portal
Expert Practising Certificate - For mandatory professional certification of Form CHG-1
Upload all documents as single consolidated PDFs under 10 MB each. The charge instrument date must match the "Date of Creation" entered in CHG-1 exactly. A date mismatch between the instrument and the form is the single most common rejection reason.
Step-by-Step CHG-1 Filing Process in Kharagpur
The charge creation filing process involves 8 steps and takes 5 to 7 working days with IncorpX. The total cost starts at ₹4,199 (₹3,999 professional fee + ₹200 minimum government fee). Every step below matches the mandatory requirements under Section 77 of the Companies Act, 2013. The process is identical for companies across India, including Kharagpur, as filing is 100% online via the MCA V3 portal.
Step 1: Execute the Charge Instrument
Complete the loan agreement, mortgage deed, hypothecation agreement, or pledge agreement between the company and the lender. Execute the document on stamp paper at the applicable state stamp duty rate (3% to 7% depending on the state and instrument type). This instrument is the legal basis for the charge, and its date marks the start of the 30-day filing deadline.
Time: 1 day
Step 2: Pass Board Resolution for Borrowing
Convene a board meeting and pass a resolution authorizing the borrowing and creation of charge on company assets. The resolution must specify the loan amount, charge holder name, assets being charged, and the director authorized to sign the filing. Prepare certified copies of the resolution signed by the Compliance Professional or a director.
Time: 1 day | Form: Board Resolution (certified copy)
Step 3: Gather Supporting Documents
Collect all required documents: executed charge instrument, board resolution, charge holder details (PAN, address, CIN if applicable), property description, and company CIN. Verify DSC validity and MCA portal association for the authorized signatory before proceeding to the next step.
Time: 1 day
Step 4: Prepare and Pre-fill Form CHG-1 on MCA Portal
Log in to the MCA V3 portal at www.mca.gov.in. Navigate to e-Filing, select Company Forms, and open CHG-1. Pre-fill using Company CIN. Enter the charge creation date, charge holder details, amount secured, property description, terms, and type of charge (mortgage, hypothecation, pledge, or others).
Time: 1 day | Portal: MCA V3 (www.mca.gov.in)
Step 5: Attach Documents and Verify
Upload the executed charge instrument, board resolution, and any supplementary agreements as PDF attachments (under 10 MB each). Cross-verify all entered details against the original documents. The form includes a declaration by the authorized signatory confirming accuracy of all information provided.
Time: Same day
Step 6: Obtain Professional Certification
Get the form certified by a practising Compliance Professional or Tax Professional. The professional certifies that all statements in the form are true and correct. This certification is mandatory for CHG-1 filing and cannot be skipped under any circumstance.
Time: 1 day | Requirement: Expert practising certificate
Step 7: Digitally Sign and Pay Government Fee
Apply the DSC of the authorized director and the certifying professional. Pay the government fee online via net banking or debit/credit card. The fee ranges from ₹200 to ₹5,000 based on the company's authorized capital. An SRN (Service Request Number) is generated upon successful payment.
Time: Same day | Fee: ₹200 to ₹5,000
Step 8: Submit and Track Approval
Submit the form on the MCA portal. The ROC reviews the filing and, if satisfactory, registers the charge and issues a Charge ID along with the registration certificate. Track the filing status using your SRN on the MCA portal. Processing typically takes 2 to 3 working days after submission.
Time: 2 to 3 working days | Output: Charge ID + Registration Certificate
Deadline Alert: The 30-day deadline runs from the date on the charge instrument (the charge creation date), NOT from the date the company received the loan amount. Many companies miss this distinction and file late, triggering 2x to 10x additional fees.
Expert certification included. Complete filing in 5 to 7 working days.
Charge Creation Filing Fees and Government Charges 2026
Understanding the complete cost of charge creation filing helps you budget accurately. The total cost depends on your company's authorized capital, DSC status, and the state where the charge instrument is executed.
Government Fee for Form CHG-1 (Based on Authorized Capital)
Authorized Capital
CHG-1 Filing Fee
Up to ₹1 lakh
₹200
₹1 lakh to ₹5 lakh
₹300
₹5 lakh to ₹25 lakh
₹400
₹25 lakh to ₹1 crore
₹500
₹1 crore to ₹5 crore
₹600
Above ₹5 crore
₹100 per ₹5 crore (maximum ₹5,000)
Total Cost Breakdown
Component
Amount (₹)
Notes
Professional Fee (IncorpX)
₹3,999 onwards
Includes form preparation, Expert certification, filing
Government Fee (MCA)
₹200 to ₹5,000
Based on authorized capital (see table above)
DSC (if new required)
₹1,500 to ₹2,500
Class 3 DSC, valid 2 years
Stamp Duty (charge instrument)
Varies by state
3% to 7% of loan amount per state rates
Total (excluding stamp duty)
₹4,199 to ₹9,000+
Depends on capital and DSC requirement
Late Filing Additional Fees
Filing Period
Additional Fee
Within 30 days
Nil (normal fee only)
31 to 60 days
2x normal filing fee
61 to 120 days
4x normal filing fee
Beyond 120 days
6x to 10x normal fee + condonation costs
Beyond 300 days
Central Government condonation (CHG-9) + NCLT fee
Pricing Transparency
Listed amounts are IncorpX professional charges for end-to-end filing assistance. Government fees and stamp duty are charged separately at actuals and payable directly to the respective authorities. IncorpX's ₹3,999 professional fee covers form preparation, Expert certification, document review, MCA submission, and tracking. No hidden charges.
Penalties for Late Charge Registration (Section 86)
Section 86 of the Companies Act, 2013 prescribes strict penalties for non-registration or late registration of charges. The consequences affect both the company and its officers, and extend beyond monetary fines to include criminal liability.
Liable Party
Penalty
Section Reference
Company
Fine of ₹1 lakh to ₹10 lakh
Section 86(1)
Every Officer in Default
Imprisonment up to 6 months OR fine of ₹25,000 to ₹1 lakh OR both
Section 86(2)
Charge Holder (if void)
Loss of secured creditor status; treated as unsecured creditor
Section 80
Under Section 80, an unregistered charge becomes void against the liquidator and all creditors of the company. The lender loses priority during liquidation and ranks alongside unsecured creditors. The underlying debt obligation remains valid, but the security interest provides no preferential claim on the charged asset.
Section 78 Safeguard for Lenders
If the company fails to file within 30 days, the charge holder (bank or NBFC) can file Form CHG-1 directly under Section 78 and recover all filing costs from the company. Lenders increasingly exercise this right to protect their security interest from becoming void.
Avoid ₹1 lakh to ₹10 lakh penalty. Expert CHG-1 filing starting at ₹3,999.
Condonation of Delay in Charge Filing (Section 87)
Condonation of delay in charge filing is the legal mechanism under Section 87 of the Companies Act, 2013 that allows a company to register a charge beyond the standard 30-day deadline, subject to additional fees and government approval.
Filing Window
Authority
Form Required
Additional Cost
Within 30 days
No condonation needed
CHG-1 (normal)
Nil (standard fee only)
31 to 300 days
Registrar of Companies (ROC)
CHG-1 (with delay)
2x to 10x additional fee
Beyond 300 days
Central Government
CHG-9
NCLT filing fee + government fee + legal costs
Critical Advice: Filing late with condonation is always better than not filing at all. A late-filed charge, even with additional fees, still gets registered and protects the lender's security interest. Complete non-filing results in a void charge under Section 80 and ₹1 lakh to ₹10 lakh penalty.
Charge Creation (CHG-1) vs Charge Satisfaction (CHG-4)
CHG-1 and CHG-4 represent two stages of the charge lifecycle. CHG-1 registers the creation of a new charge when borrowing begins. CHG-4 registers the satisfaction (closure) of a charge when the loan is fully repaid. Companies that need to close an existing charge should file charge satisfaction filing (Form CHG-4) separately.
Parameter
Charge Creation (CHG-1)
Charge Satisfaction (CHG-4)
Purpose
Register new charge on company assets
Close/remove existing registered charge
When Filed
When company borrows against assets
When loan is fully repaid
Form Number
CHG-1
CHG-4
Governing Section
Section 77
Section 82
Filing Deadline
30 days from charge creation
30 days from satisfaction date
Filed By
Company or charge holder (Section 78)
Company only
Result
Charge appears on MCA master data
Charge removed from active records
Related Compliance Services in Kharagpur
Charge creation filing is one of several event-based ROC filings that companies in Kharagpur must complete during their lifecycle. IncorpX assists with all compliance filings with Expert support, 100% online.
Annual and event-based compliance management for private and public limited companies. Stay penalty-free with expert support.
Expert team assists with your entire CHG-1 filing from ₹3,999.
Frequently Asked Questions About Charge Creation Filing in Kharagpur (2026)
Updated for 2026. Below are answers to the most common questions about charge creation filing, Form CHG-1, registration deadlines, government fees, penalty provisions, and the condonation process under the Companies Act, 2013. Reviewed and verified by our Expert compliance team.
Charge creation filing in Kharagpur is the mandatory registration of a security interest (mortgage, hypothecation, or pledge) created on a company's assets with the Registrar of Companies by filing Form CHG-1 under Section 77 of the Companies Act, 2013. Companies registered in Kharagpur follow the same centralized online process via the MCA V3 portal (www.mca.gov.in). The filing must be completed within 30 days of charge creation to avoid penalties under Section 86.
Companies registered in Kharagpur file Form CHG-1 on the MCA V3 portal (www.mca.gov.in), which is a centralized online system. No physical visit to any ROC office is required. Execute the charge instrument, pass a board resolution, prepare CHG-1, get Expert certification, apply DSC, pay the government fee (₹200 to ₹5,000), and submit online. The 30-day deadline under Section 77 applies equally across all cities, including Kharagpur.
Stamp duty on charge instruments (mortgage deeds, hypothecation agreements) in your state is governed by the respective state Stamp Act. Rates typically range from 3% to 7% of the loan amount for registered mortgages. Equitable mortgage (deposit of title deeds) attracts significantly lower stamp duty. Stamp duty must be paid before executing the instrument, as an unstamped document leads to CHG-1 rejection.
Total cost for charge creation filing in Kharagpur includes professional fee starting at ₹3,999 (IncorpX), MCA government fee of ₹200 to ₹5,000 (based on authorized capital), DSC cost of ₹1,500 to ₹2,500 (if new), and state stamp duty on the charge instrument as per state rates. Excluding stamp duty, expect ₹4,199 to ₹9,000+ total.
With all documents ready, IncorpX assists with CHG-1 filing for companies in Kharagpur in 5 to 7 working days, including document verification (1 to 2 days), form preparation and Expert certification (2 to 3 days), and MCA submission plus ROC processing (2 to 3 days). Since filing is 100% online via the MCA portal, the timeline is identical across India.
IncorpX provides 100% online assistance for charge creation filing for companies in Kharagpur. Since Form CHG-1 is filed digitally on the MCA V3 portal, no physical presence is needed. Our Expert Team assists with documentation, certification, and filing remotely. Starting at ₹3,999 with 5 to 7 working day processing. Over 2,500 charge filings completed across India.
Companies registered in Kharagpur fall under the jurisdiction of the ROC office for the respective state. However, since CHG-1 is filed 100% online on the MCA V3 portal (www.mca.gov.in), no physical visit to any ROC office is required. The centralized MCA portal processes all charge registrations digitally. After submission, the ROC reviews and approves the filing within 2 to 3 working days.
Charge creation is the process of registering a security interest (mortgage, hypothecation, or pledge) on a company's assets with the Registrar of Companies. Under Section 77 of the Companies Act, 2013, every company must file Form CHG-1 within 30 days of creating a charge to protect the lender's rights against other creditors.
Section 77 mandates that every company creating a charge on its property or assets must register it with the ROC by filing Form CHG-1 within 30 days of the charge creation date. It covers all types of charges including mortgage, hypothecation, pledge, and lien. The ROC can condone delay up to 300 days from creation.
A fixed charge attaches to a specific, identifiable asset (like land or building) and restricts the company from selling it without lender consent. A floating charge covers a class of changing assets (like inventory or receivables) and allows the company to deal with them freely until the charge crystallizes upon default or winding up.
Pari passu charge means two or more lenders hold an equal-ranking security interest over the same company asset. In consortium lending, banks share the charge proportionately. Each lender's claim ranks equally during liquidation. All pari passu charge holders must be listed in Form CHG-1.
Hypothecation filing registers a charge where the borrower retains possession of the movable asset (vehicles, machinery, inventory) while creating a security interest for the lender. The company files Form CHG-1 selecting hypothecation as charge type. Unlike pledge, the asset remains with the company. Common for working capital loans and vehicle financing.
A mortgage creates a security interest on immovable property (land, buildings) and may transfer possession to the lender. Hypothecation creates security on movable property (vehicles, machinery, stock) where the borrower retains possession. Both require Form CHG-1 filing, but mortgage deeds attract higher stamp duty (3% to 7% by state).
Under Section 80, an unregistered charge becomes void against the liquidator and any creditor of the company. The lender loses secured creditor status and is treated as an unsecured creditor during liquidation. The underlying debt remains valid, but the security interest offers no priority. This makes timely CHG-1 filing critical.
Crystallization converts a floating charge into a fixed charge, locking it onto specific assets. This occurs upon company default, winding-up order, or a contractual trigger event in the loan agreement. Once crystallized, the company can no longer deal with the charged assets. The charge holder gains rights similar to a fixed charge holder.
Under Section 80, a registered charge serves as deemed notice to all creditors from the date of registration. It gives the charge holder priority over unsecured creditors during liquidation. Any person dealing with the company's property is presumed to know about the charge. Registration through CHG-1 protects the lender's security interest legally.
A Charge ID is a unique identification number assigned by the ROC upon successful registration of a charge through Form CHG-1. It appears on the charge registration certificate and the MCA portal's company master data. The Charge ID is required for all subsequent filings, including modification (CHG-1) and satisfaction (Form CHG-4).
Section 85 requires every company to maintain its own register of charges in Form CHG-7 at the registered office. This register must record all charges created by the company, including charge holder details, amount secured, property charged, and creation date. The register is open for inspection by any creditor or member without fee.
Yes. Under Section 78, if the company fails to file CHG-1 within 30 days, the charge holder (lender or bank) can file the form themselves. The charge holder can recover all filing expenses from the company. This safeguard protects lenders from company negligence in registration.
Charge registration is mandatory when a company creates a security interest on its assets for any borrowing, including term loans, working capital, debentures, and vehicle loans. Unsecured loans without any asset pledge do not require CHG-1 filing. Under Section 77, any charge on property or assets must be registered within 30 days.
Log in to the MCA V3 portal (www.mca.gov.in), navigate to e-Filing, and select Form CHG-1. Pre-fill using CIN, enter charge details (type, holder, amount, property, creation date), upload the charge instrument and board resolution as PDF attachments, get Expert certification, apply DSC, pay the fee (₹200 to ₹5,000), and submit.
The primary deadline is 30 days from the date of charge creation under Section 77(1). If missed, the ROC can condone the delay for filings made within 300 days from creation, subject to additional fees. Beyond 300 days, only the Central Government can grant condonation under Section 87 via Form CHG-9.
Required documents include the executed charge instrument (loan agreement, mortgage deed, or hypothecation agreement), certified board resolution authorizing borrowing, charge holder details (PAN, address, CIN), property description, company CIN, and a valid DSC of the authorized signatory. All documents must be uploaded as PDFs on MCA portal.
Visit www.mca.gov.in, go to MCA Services, View Company/LLP Master Data, enter the company CIN, and click the Charges tab. All registered charges display with Charge ID, creation date, charge holder name, amount, and status (open/satisfied). This data is publicly accessible without any login or fee.
Charge modification (change in terms, amount, or property) is filed using Form CHG-1 (same form as creation) selecting modification as the filing type. The deadline is 30 days from modification date. Attach the supplemental agreement and board resolution approving the modification.
Form CHG-1 can be filed by the company itself (through an authorized director) or by the charge holder (lender/bank) under Section 78 if the company defaults. The form must be certified by a a qualified professional. The authorized signatory's DSC must be registered on the MCA portal before filing.
After successful CHG-1 submission and ROC approval, the Charge ID is generated automatically and appears on the charge registration certificate downloadable from the MCA V3 portal under Track Filing Status using the SRN. It also reflects in the company's master data under the Charges tab. Processing takes 2 to 3 working days.
The board resolution must authorize borrowing of a specific amount from the named lender with creation of charge on identified assets. It should name the specific director authorized to execute documents and file Form CHG-1, and mention the charge type (mortgage, hypothecation, or pledge). The resolution is certified by the Compliance Professional or a director.
MCA government fees for Form CHG-1 depend on authorized capital: ₹200 (up to ₹1 lakh), ₹300 (₹1 to ₹5 lakh), ₹400 (₹5 to ₹25 lakh), ₹500 (₹25 lakh to ₹1 crore), ₹600 (₹1 to ₹5 crore), and ₹100 per ₹5 crore above ₹5 crore, up to a maximum of ₹5,000.
Late filing attracts escalating additional fees: 2x normal fee for filing between 31 to 60 days, 4x normal fee between 61 to 120 days, and 6x to 10x normal fee beyond 120 days. Beyond 300 days, condonation through Central Government via Form CHG-9 adds NCLT filing costs. Timely filing within 30 days avoids all additional fees.
Total cost includes professional fee starting at ₹3,999 (IncorpX), MCA government fee of ₹200 to ₹5,000 (based on authorized capital), DSC cost of ₹1,500 to ₹2,500 (if new), and state stamp duty on the charge instrument (3% to 7% of loan amount). Excluding stamp duty, expect ₹4,199 to ₹9,000+ total.
Yes, stamp duty applies on the charge instrument (mortgage deed, hypothecation agreement) and varies by state. Rates range from 3% in Gujarat to 7% in Uttar Pradesh. Equitable mortgage (deposit of title deeds) attracts significantly lower duty. Stamp duty is paid before executing the instrument.
IncorpX's ₹3,999 package includes board resolution drafting, Form CHG-1 preparation and filing on MCA portal, Expert certification, document verification, DSC assistance, government fee payment guidance, and post-filing tracking until Charge ID issuance. Covers mortgage, hypothecation, pledge, and all charge types under Section 77.
CHG-1 filing requires precise legal details, mandatory Expert certification, correct charge type classification, and MCA portal expertise. Errors cause rejection and deadline breach. Missing the 30-day window triggers 2x to 10x penalty fees. Non-registration makes the charge void under Section 80. Professional filing ensures accuracy.
Form CHG-1 registers the creation or modification of a charge (when borrowing starts), while Form CHG-4 registers the satisfaction of a charge (when borrowing ends and loan is repaid). Both have a 30-day filing deadline. CHG-1 is filed under Section 77; CHG-4 under Section 82.
Charge creation registers a new security interest for the first time. Charge modification updates an existing registered charge when terms change, such as increased loan amount, changed property, or additional charge holder. Both use Form CHG-1 with the same 30-day deadline, but modification requires the existing Charge ID.
In pledge, the borrower transfers physical possession of movable assets (like shares, gold, goods) to the lender. In hypothecation, the borrower retains possession of movable assets (vehicles, machinery, inventory). Both require CHG-1 filing. Pledge gives the lender immediate access; hypothecation requires legal steps to seize upon default.
Private limited companies file CHG-1 under Section 77 of the Companies Act, 2013 with MCA. LLPs currently do not have a separate charge registration requirement under the LLP Act, 2008, though lenders may require it contractually. The Companies Act charge provisions apply only to companies, not to LLPs or partnership firms.
Yes, Expert certification is mandatory for filing Form CHG-1 on the MCA portal. A qualified practising professional must certify that all statements in the form are true and correct. Filing without professional certification results in automatic rejection. IncorpX's ₹3,999 package includes this mandatory certification.
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