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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.
Modification of Charge refers to any change in the terms or conditions of an already registered charge on a company’s assets. This may include changes in loan amount, interest rate, repayment terms, or security details. Such modification must be reported to the Registrar of Companies (ROC).
A company must file for modification when:
The company must file Form CHG-1 with MCA for modification of charge (other than debentures). For debenture-related charges, Form CHG-9 is used. The form must be filed within the prescribed time limit.
The modification must be filed with ROC within 30 days from the date of modification. Delay can lead to additional government fees and penalties, and may require condonation of delay in certain cases.
Common documents include:
These are attached with the e-form during MCA filing.
