CCFS — Charge Creation and Filing Services

Q: What types of assets require charge registration?

All company assets — land, buildings, machinery, stock, book debts, intellectual property, and goodwill — where a security interest is created in favour of a lender must be registered.

Q: What is the consequence of not registering a charge?

An unregistered charge is void against the liquidator and creditors in a winding-up. The debt remains valid, but the security becomes unenforceable.

Q: Who is responsible for filing the charge?

The company must file within 30 days. If it fails, the charge holder may file within 60 days under Section 78 and recover registration costs from the company.

Q: What is the process for recording satisfaction of a charge?

File Form CHG-4 within 30 days of repayment or release, with a memorandum of satisfaction from the lender. The ROC then issues a Certificate of Satisfaction.

Q: What happens if the 30-day period for charge registration is missed?

Additional fees apply up to 60 days. Beyond that, Form CHG-8 for condonation of delay must be filed with an affidavit explaining the reasons for the delay.

Complete Guide to Filing Charges Under Sections 77–87 of the Companies Act, 2013 — CHG-1, CHG-4, CHG-8, and CHG-9

When a company creates a charge on its assets — such as mortgages, hypothecation agreements, pledges, or floating charges in favour of lenders or financial institutions — it is required to register that charge with the Registrar of Companies (ROC) under Section 77 of the Companies Act, 2013. This registration creates a public record of encumbrances on the company's assets, protecting lenders and informing prospective creditors.

Charge-related filings include creation (CHG-1 or CHG-9 for debentures), modification (CHG-1 or CHG-9), satisfaction (CHG-4), and condonation of delay (CHG-8). Our Charge Creation and Filing Services cover the full lifecycle — from reviewing charge documents and determining the correct form to filing on MCA21 within the prescribed time limit and tracking the ROC's certificate of registration.

Our Charge Filing Services

CHG-1: Charge Creation & Modification

Filing of Form CHG-1 for registration of charges created on company assets — including mortgages, hypothecation, pledge, or lien — and modification of existing charges with changed terms or lender details.

CHG-4: Satisfaction of Charge

Filing of Form CHG-4 upon full repayment of the secured loan or release of the charge by the lender, to formally record the satisfaction of charge on the MCA21 register.

CHG-8: Condonation of Delay

Filing of Form CHG-8 for condonation of delay in registering a charge beyond the 30-day window — seeking extension from the Central Government or Registrar for late charge registration.

CHG-9: Debenture Charges

Filing of Form CHG-9 for registration of charges on debentures or debenture trust deeds — covering both creation and modification of debenture-related security interests.

Charge Document Review

Review of loan agreements, mortgage deeds, hypothecation agreements, and debenture trust deeds to identify chargeable assets, priority, and the specific charge provisions requiring registration.

Charge Register Maintenance

Assistance with maintenance of the company's internal Register of Charges under Section 85, ensuring all created, modified, and satisfied charges are accurately recorded and available for inspection.

Key Facts About Charge Filing

A charge must be registered with the ROC within 30 days of creation — extensions up to 60 days are available with additional fees
An unregistered charge is void against the liquidator and creditors but remains valid between the company and the charge holder
Every registered charge is assigned a unique Charge ID by the ROC, which must be referenced in all subsequent filings related to that charge
Form CHG-1 is used for creation and modification; CHG-4 for satisfaction; CHG-9 for debenture charges
The ROC issues a Certificate of Registration of Charge as conclusive evidence that the charge has been properly registered
Where the lender is a foreign entity, charge documents executed abroad must be stamped and filed within 30 days of arriving in India
All companies — including private limited companies — must maintain a Register of Charges at their registered office under Section 85

Frequently Asked Questions

What types of assets require charge registration?

Section 77 requires registration of charges on all assets of the company — movable and immovable — including land and buildings (mortgage), machinery and equipment (hypothecation), stock and book debts (floating charge), intellectual property, ships and aircraft, and goodwill. Any security interest created by a company over its assets in favour of a lender must be registered. The obligation applies regardless of whether the charge is a fixed charge, floating charge, or a combination of both.

What is the consequence of not registering a charge?

An unregistered charge is void against the liquidator and any creditor of the company. This means that in a winding-up scenario, the lender holding an unregistered charge loses priority over other creditors and cannot enforce the security. However, the underlying debt obligation remains valid — only the security interest becomes unenforceable. Additionally, the company and every officer in default are liable to a fine under Section 86 of the Companies Act.

Who is responsible for filing the charge — the company or the lender?

The primary obligation to register a charge lies with the company under Section 77. However, if the company fails to file within 30 days, the charge holder (lender) may also register the charge on behalf of the company within 60 days under Section 78. After registration by the lender, the lender can recover from the company any fees and expenses incurred in registration. In practice, banks and financial institutions often insist that the company complete the registration as a loan disbursement condition.

What is the process for recording satisfaction of a charge?

When a secured loan is fully repaid or the lender releases the security, the company must file Form CHG-4 to record the satisfaction of the charge. The form requires a memorandum of satisfaction from the lender confirming the charge has been fully satisfied. CHG-4 must be filed within 30 days of the satisfaction of the charge. The ROC will issue a Certificate of Registration of Satisfaction upon approving the filing, updating the public register to show the charge as satisfied.

What happens if the 30-day period for charge registration is missed?

If the charge is not registered within 30 days, additional fees are payable for delayed filing up to 60 days. Beyond 60 days, the company must file an application in Form CHG-8 for condonation of delay, seeking approval from the Central Government or ROC to register the charge despite the delay. The CHG-8 application must be supported by an affidavit setting out the reasons for the delay and confirming that no intervening winding-up petition has been filed against the company.

Register Your Charge — Protect Your Security Interest

Expert charge document review and CHG-1, CHG-4, CHG-8, and CHG-9 filing on MCA21 for companies and lenders.