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Charge creation, modification or satisfaction, CHG-1 / CHG-4

  • When you give security for a loan, the charge must be registered with the ROC in CHG-1 within 30 days; when the loan is fully repaid, CHG-4 closes it.
  • Deadline: Within 30 days of creating, modifying or fully repaying the charge
  • Done in 2 working days after the loan documents
  • Prepared by your Savvy, checked by a CA
  1. Sanction letter and loan agreement
  2. Is this a new charge
  3. Collect executed loan and security documents and lender's signatory details
  4. SRN and challan
The law and the stepsPay and start · ₹1,999As needed, + 18% GST

Answer in brief

When you give security for a loan, the charge must be registered with the ROC in CHG-1 within 30 days; when the loan is fully repaid, CHG-4 closes it. We file with the lender's sign-off and track the dates so you do not hit the hard limits.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Companies Act 2013, Sec 77(1)

    Company must register a charge within 30 days of creation; Registrar may allow up to 60 days with additional fee, then a further 60 days with ad valorem fee (charges created after the 2019 amendment)Source

  • Companies (Registration of Charges) Rules 2014, Rule 3

    Particulars filed in CHG-1 (CHG-9 for debentures), signed by the company and the charge holder, with a copy of the instrument; charge holder may file if the company does notSource

  • Companies (Registration of Charges) Rules 2014, Rule 4

    Late registration within the Sec 77 provisos on application in CHG-1 with declaration by a director or CS, paying additional or ad valorem feeSource

  • Companies Act 2013, Sec 82(1)

    Intimate full payment or satisfaction within 30 days; Registrar may allow up to 300 days with additional feeSource

  • Companies (Registration of Charges) Rules 2014, Rule 8

    Satisfaction intimated in CHG-4 with fee; Registrar issues certificate in CHG-5Source

  • Companies Act 2013, Sec 87 and Registration of Charges Rules, Rule 12

    Central Government may extend time for intimation of satisfaction or rectify omissions or misstatements; application in CHG-8, order filed in INC-28Source

  • Companies Act 2013, Sec 86(1)

    Default in Chapter VI: penalty ₹5 lakh on the company and ₹50,000 on each officer in defaultSource

  • Government fee

    Normal filing fee by nominal (authorised) share capital under the Companies (Registration Offices and Fees) Rules 2014: below ₹1,00,000: ₹200; ₹1,00,000 to below ₹5,00,000: ₹300; ₹5,00,000 to below ₹25,00,000: ₹400; ₹25,00,000 to below ₹1 crore: ₹500; ₹1 crore or more: ₹600. Source: https://vasai.icai.org/resources/Utilities/Penalty_for_Late_Filing_in_ROC/Penalty_for_Late_Filing_in_ROC.aspx

  • Late fee or penalty

    CHG-1 for charges created or modified on or after 2 Nov 2018 (from 1 Aug 2019): small companies and OPCs: up to 30 days late: 3 times normal fee; more than 30 to 90 days late: 3 times plus ad valorem 0.025% of amount secured, max ₹1 lakh. Other companies: 6 times; then 6 times plus 0.05% of amount secured, max ₹5 lakh (source: https://abcaus.in/companies-act/mca-revises-fees-filing-charge-documents-roc-read-notification.html). Beyond 120 days from creation the charge cannot be registered under Sec 77 (source: https://lawx.in/acts/section/24/308/2923). Penalty Sec 86: ₹5 lakh company, ₹50,000 officer (source: https://vasai.icai.org/detail/17469.aspx).

On the portal

  1. Login to MCA V3 (https://www.mca.gov.in) with the business user ID of the signing director or professional
  2. Check that the signatory's DSC is registered on V3 against the DIN or PAN or membership number used in the form
  3. Open e-form CHG-1 (or CHG-4) from the company e-filing forms list and enter CIN
  4. Choose creation or modification; for modification or satisfaction, enter the open charge ID
  5. Enter charge holder (pick the bank from the list or choose Others with PAN), amount secured, dates, property details including latitude and longitude for immovable property
  6. Fill the web form; company data is prefilled from master data, so check it against records before moving on
  7. Upload attachments as PDF (2 MB per file, 10 MB total for most forms)
  8. Affix DSC of the company signatory and, where the form needs it, the certifying professional
  9. Submit, pay the fee shown (normal plus any additional fee) and note the SRN
  10. Track the SRN on the application dashboard; download challan and approval when issued
  11. Send the form to the charge holder for its DSC (or charge holder signs from its login) before payment

What trips people up

  • Counting 30 days from sanction or disbursement

    Count from execution of the security documentSource

  • Forgetting CHG-4 after repayment, which blocks new loans

    Ask the lender for the closure letter at final payment and file within 30 daysSource

  • 'DSC not registered with DIN' on CHG-1 though it is registered

    Re-register DSC on V3 and retry; raise a complaint if it persistsSource

  • Modification attempted on a satisfied charge ID

    Use an open charge ID; a closed one needs a fresh CHG-1Source

  • Charge filed by charge holder goes to non-STP and takes longer

    Company files within 30 days itselfSource

  • Attachment rejected for size

    Keep each file within 2 MB and the form within 10 MB; split or compress PDFsSource

People ask

What if we miss the 30 days for CHG-1?

You can still file up to 60 days with additional fee, and up to 120 days with an ad valorem fee, on application to the Registrar.Source

Can a charge be registered after 120 days?

Not under Sec 77. Sec 87 condonation now covers satisfaction delays and misstatements, not late registration of new charges. Take advice on fresh security documents.Source

How long do we have to file CHG-4?

30 days from full repayment; the Registrar can allow up to 300 days with additional fee. Beyond that, apply in CHG-8.Source

Who signs CHG-1?

Both the company and the charge holder sign with DSC.Source

Do unsecured loans need CHG-1?

No. Only loans backed by a charge on company assets.Source

IDFD

How we solve it: 4 steps

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Step 1 of 4 · What we need from you

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  • Sanction letter and loan agreement
  • Instrument creating the charge
  • Date of execution of security
  • Property details, with location
  • Charge holder's PAN and signatory
  • Board resolution for borrowing and security
  • Lender's no-dues or closure letterOptional
  • Charge ID from MCA indexOptional

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As needed. Delivered in 2 working days after the loan documents. Due: Within 30 days of creating, modifying or fully repaying the charge

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