How to File CHG-1 for Charge Registration: Complete Step-by-Step Guide

How to File CHG-1 for Charge Registration: Complete Step-by-Step Guide

Taking a loan against your company's assets, whether it is a term loan from a bank, a working capital facility, or a loan against property, is a normal and often necessary part of running a business. But there is a compliance step right after that many founders don't realise is legally mandatory: registering that charge with the Registrar of Companies through Form CHG-1.

Skip it, and your lender's security interest may not be legally enforceable against other creditors, which is a bigger problem than it sounds. Let's walk through exactly what CHG-1 is, when you need it, and how to file it correctly.

What is CHG-1 and Why Does It Matter

CHG-1 is the form used to register the creation or modification of a charge on a company's assets or property in favour of a lender, under Section 77 to 87 of the Companies Act, 2013. A "charge" here means security created on the company's assets, movable or immovable, tangible or intangible, to secure repayment of a loan or a debt.

When your company borrows money and pledges an asset, say, its office property, plant and machinery, receivables, or even inventory, as security, the lender wants to ensure that if the company defaults or goes into liquidation, they have a priority claim over that specific asset. Registering this charge with the ROC through CHG-1 makes that claim a matter of public record, which is exactly what gives the lender enforceable priority over other creditors and stakeholders.

Here is the critical part: if a charge is not registered within the prescribed time, it is treated as void against the liquidator and other creditors of the company. This does not mean the loan itself becomes invalid, the company still owes the money, but the lender loses their special priority status over the secured asset. This is precisely why banks and NBFCs are usually very particular about ensuring CHG-1 is filed promptly, often making it a condition of loan disbursement itself.

CHG-1 is used for registering charges created through instruments like mortgage deeds, hypothecation agreements, or pledge agreements. It applies to most forms of secured borrowing, whether from banks, financial institutions, NBFCs, or even related parties in certain cases.

Who Must File CHG-1 and When (Due Date)

Any company that creates a charge on its property or assets to secure a loan or debt must file CHG-1 with the ROC. This applies to:

• Companies availing secured term loans or working capital facilities from banks
• Companies creating a mortgage on immovable property to secure borrowing
• Companies hypothecating movable assets like machinery, inventory, or receivables
• Companies pledging shares or other securities as collateral
• Companies modifying the terms of an existing registered charge, such as changing the loan amount, interest rate, or the charge holder

The due date is critical: CHG-1 must be filed within 30 days from the date of creation of the charge. The date of creation is typically the date on which the loan or security document (like the mortgage deed or hypothecation agreement) is executed, not the date the loan amount is actually disbursed.

If the company is unable to file within 30 days, the Registrar has the power to allow filing within a further period, subject to additional fees, but this extended timeline itself has outer limits, and delays beyond a certain point may require the company to approach the Central Government (delegated to the Regional Director) for condonation of delay, which is a more involved and time-consuming process. Because of these escalating consequences, it is far better to treat the 30-day window strictly rather than assume extensions are always freely available.

It is worth noting here that most banks and NBFCs, being aware of this timeline, will often push companies hard to complete CHG-1 filing quickly after loan documentation, sometimes even making disbursement conditional on proof of CHG-1 filing. If you are dealing directly with the lender's legal team, keep your company's compliance team looped in from day one of the loan documentation process, not after the loan is disbursed.

Documents Required for CHG-1 Filing

Keep the following ready before starting your filing:

• Loan agreement / sanction letter from the bank or financial institution detailing the loan amount, interest rate, and repayment terms
• Mortgage deed, hypothecation agreement, or pledge agreement, whichever instrument creates the charge
• Board resolution approving the borrowing and authorising the creation of the charge on the company's assets
• Details of the property or asset being charged, including description, location (for immovable property), and valuation, if applicable
• Details of the charge holder, including name, address, and CIN/PAN (if the charge holder is itself a company)
• Instrument creating the charge, duly stamped as per applicable state stamp duty rules
• Certificate of registration of charge from previous ROC, if the charge is being modified rather than newly created
• No Objection Certificate (NOC), in some cases, if there was an earlier charge on the same asset that is being modified or replaced
• Digital Signature Certificate (DSC) of the director or authorised signatory
• Certification from a practicing professional (CA/CS/Cost Accountant), if required based on the nature of the charge or company category

Since the charge instrument often needs to be properly stamped under the relevant state's Stamp Act before it can be registered, make sure stamping formalities are completed early, as this alone can take a few days depending on your state.

Step-by-Step Guide to Filing CHG-1 on MCA V3

1. Execute the charge document (mortgage deed, hypothecation agreement, or pledge agreement) with the lender, and ensure it is properly stamped as per your state's stamp duty requirements.

1. Pass the board resolution approving the borrowing arrangement and authorising the creation of the charge, if not already passed as part of the loan approval process.

1. Log in to the MCA V3 portal with valid credentials for the company or its authorised representative.

1. Navigate to the "MCA Services" section and locate e-Form CHG-1 under charge-related filings.

1. Fill in the company details, which are usually auto-populated from your CIN, along with the registered office address.

1. Enter the charge details, including the date of creation of charge, type of charge (e.g., mortgage, hypothecation, pledge), amount secured by the charge, and rate of interest.

1. Enter the details of the charge holder, such as the lender's name, address, and other identifying details as required by the form.

1. Provide a description of the property or assets charged, including whether it is movable, immovable, or a combination, along with brief particulars sufficient to identify the asset.

1. Attach the instrument creating the charge, board resolution, and any other supporting documents such as valuation reports or NOCs from earlier charge holders.

1. Affix the Digital Signature Certificate of the authorised director or company signatory, and the DSC of a certifying professional, if applicable.

1. Run the pre-scrutiny check on the MCA V3 portal to catch missing fields, incorrect formats, or attachment errors before final submission.

1. Pay the requisite filing fee, which depends on the amount of charge and the company's authorised capital slab. Since fee structures are periodically revised, always verify the current fee on mca.gov.in.

1. Submit the form and note the Service Request Number (SRN) for tracking.

1. Track approval status using the SRN, and once the ROC approves the filing, download the Certificate of Registration of Charge, which is the official proof that the charge is validly registered.

1. Share the Certificate of Registration of Charge with your lender, since banks typically require this as proof of compliance before or shortly after loan disbursement.

Fees and Penalties in 2026 (Please Verify Current Rates)

The government filing fee for CHG-1 is generally based on the amount secured by the charge, following a slab-based structure, in addition to fees linked to the company's nominal share capital in certain cases. Because these fee slabs are subject to periodic revision by the Ministry of Corporate Affairs, please verify the exact current fee applicable to your charge amount on mca.gov.in before making payment.

If CHG-1 is filed after the standard 30-day window but within the additional condonable period allowed by the Registrar, additional fees apply, typically on a graded basis depending on the extent of delay. Beyond this additional condonable period, the company may need to apply separately for condonation of delay, which involves a further application, additional fees, and processing time, making the overall process considerably longer and more expensive than a timely filing would have been.

Beyond the direct fee implications, the bigger risk of not registering a charge on time is that the charge becomes void against the liquidator and other creditors. This means that if the company faces insolvency or winding up, the lender who was supposed to have a secured, priority claim over specific assets may instead be treated as an unsecured creditor for that charge, a significantly weaker position. This is a serious commercial risk for both the company (which may face lender action for breach of loan covenants) and the lender, so both sides typically treat timely CHG-1 filing as a priority.

Please treat all figures relating to fees and penalties in this article as indicative only, and confirm the current applicable amounts directly on mca.gov.in or with your compliance advisor before filing.

Common Mistakes Companies Make While Filing CHG-1

• Calculating the 30-day deadline from disbursement date instead of the date of creation/execution of the charge document, which is the legally relevant date
• Delayed stamping of the charge instrument, which pushes back the entire filing timeline since an improperly stamped document can create legal complications
• Incomplete description of the charged asset, making it difficult to identify the specific property or asset secured by the charge
• Not attaching the board resolution authorising the borrowing and charge creation
• Missing NOC from an existing charge holder when modifying or creating a second charge on the same asset
• Errors in the charge amount or interest rate that do not match the actual loan agreement, leading to discrepancies flagged by the ROC
• Not coordinating with the lender's legal team, resulting in delays in obtaining the properly executed and stamped charge instrument
• Assuming the lender will handle the ROC filing, when in fact it is the company's statutory responsibility to file CHG-1, even though lenders often push for it
• Ignoring charge modification requirements when loan terms change, such as revised interest rates or additional security, which also require a fresh CHG-1 filing
• Not retaining the Certificate of Registration of Charge, which is often required later for loan closure, charge satisfaction (CHG-4), or due diligence

Given the strict 30-day timeline and the serious legal consequence of an unregistered charge, it is wise to start the CHG-1 filing process the same day the loan or security document is executed, rather than waiting for disbursement or other formalities to be completed.

Frequently Asked Questions

What happens if I miss the 30-day deadline to file CHG-1?

The Registrar may allow filing within a further condonable period on payment of additional fees. If this extended period also lapses, the company will need to apply for condonation of delay to the Regional Director, a more time-consuming and involved process. Until validly registered, the charge is void against the liquidator and other creditors.

Is CHG-1 required for all types of loans?

CHG-1 is required specifically when the loan is secured by a charge on the company's assets, whether movable or immovable. Purely unsecured loans, where no specific asset is pledged as security, generally do not require CHG-1 filing, but it is best to confirm this based on your specific loan documentation.

Who is responsible for filing CHG-1, the company or the lender?

The statutory responsibility to file CHG-1 lies with the company. However, in practice, lenders (banks and NBFCs) often actively follow up and sometimes assist in ensuring the filing is completed promptly, since it protects their own security interest.

What is the difference between CHG-1 and CHG-4?

CHG-1 is filed to register the creation or modification of a charge. CHG-4 is a separate form filed later to intimate the ROC about the satisfaction (repayment and release) of a charge once the loan has been fully repaid and the security released.

Can CHG-1 be filed for modification of an existing charge?

Yes, CHG-1 is also used to file modifications to an already registered charge, such as changes in the loan amount, interest rate, or terms of the charge. The same 30-day timeline from the date of modification applies.

Do I need a Digital Signature Certificate to file CHG-1?

Yes, CHG-1 must be digitally signed using a valid Digital Signature Certificate of an authorised director or officer of the company, and in many cases also requires certification by a practicing professional.

What documents does the bank usually ask for after CHG-1 is filed?

Most banks and NBFCs will ask for the Certificate of Registration of Charge issued by the ROC after CHG-1 is approved, as proof that their security interest has been validly registered and is enforceable.

Does an unregistered charge affect the validity of the loan itself?

No, the underlying loan or debt obligation remains valid and payable by the company regardless of charge registration. What is affected is the lender's secured, priority status over the specific asset, which becomes void against the liquidator and other creditors if the charge is not registered in time.

Given how time-sensitive and legally significant CHG-1 filing is, most founders prefer having a compliance professional handle it in parallel with their loan documentation rather than tracking the 30-day window themselves. Legal Suvidha's free compliance check can help you quickly assess whether any of your company's charges are pending registration or modification.

Why Founders Choose Legal Suvidha

For 14 years we have taken founders end-to-end — from choosing the right structure and incorporating, to first-year compliance, funding readiness, and ongoing ROC/GST/tax filings — so you never have to switch providers as you grow.

• One team for the whole journey — start, launch, post-launch and every annual filing after.
• Fixed, all-inclusive pricing — professional plus government fees itemised, no hidden charges.
• A dedicated CA/CS who owns your case and does not disappear after payment.
• 6,000+ founders served, 4.9/5 rating, DPIIT-recognised, 100% online.

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