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As defined in the Companies Act, 2013, ("Act") "charge" means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage.
Every Charge created by the Company is required to be registered with the ROC within a period of 30 days of creation of such charge.
Charge is created as security for loan or debentures or as security for some other purpose. If the amount of loan is repaid or debentures are fully paid or other purpose is fulfilled, there remains no necessity of the charge. This is called satisfaction of charge.
Every Charge satisfied by the Company is required to be intimated to the ROC within a period of 30 days of satisfaction of such charge.
Creation of Charge means a company gives a lender (bank or financial institution) a legal right over its assets as security for a loan. This charge must be registered with the Registrar of Companies (ROC) under Section 77 of the Companies Act, 2013. It protects the lender’s interest and makes the charge legally valid against third parties.
A company must register a charge within 30 days of creating it. This usually happens when the company takes a secured loan, mortgage, or hypothecation on assets like property, machinery, inventory, or receivables. Delay in filing may lead to penalties and additional government fees.
The company is required to file Form CHG-1 with MCA for most charges (other than debentures). For charges related to debentures, Form CHG-9 is used. These forms include details of the lender, amount secured, terms of repayment, and assets charged.
If a charge is not registered:
Common documents include:
