What is charge creation (CHG-1) and why is it mandatory?

Charge creation (Form CHG-1) is the process of registering a CHARGE (security interest) on company's assets with the Registrar of Companies (ROC) under Section 77 of Companies Act, 2013. When a company takes a secured loan from bank, NBFC, or any lender, the lender requires the company to pledge certain assets as collateral/security. This pledge creates a CHARGE on those assets. Types of charges: (1) Mortgage (property/land), (2) Hypothecation (vehicles, machinery, stock), (3) Pledge (goods, securities), (4) Lien. WHY MANDATORY? (1) Legal requirement under Companies Act (Section 77), (2) Protects lender's interest (if company defaults, lender can recover by selling charged assets), (3) Public notice (other creditors know which assets are already pledged), (4) Validates loan agreement (charge not registered = lender cannot enforce security). DEADLINE: CHG-1 must be filed within 30 DAYS of charge creation (from loan sanction/disbursement date). Late filing attracts penalties up to ₹5 lakh.

What is the penalty for late CHG-1 filing?

Penalty for late CHG-1 filing (beyond 30 days from charge creation): (1) Additional MCA Fees: (a) 31-60 days late: 2x normal fee, (b) 61-90 days: 4x fee, (c) 91-180 days: 6x fee, (d) 181-270 days: 10x fee, (e) Beyond 270 days: 12x fee. Normal CHG-1 fee ranges from ₹1,000-2,000 depending on charge amount. (2) Company Penalty: Up to ₹25,000 under Section 450 of Companies Act. (3) Officer Penalty: Each officer in default (directors) liable for up to ₹10,000. (4) Lender Risk: If charge not registered within 300 days, lender LOSES priority over charged assets (cannot enforce security if company defaults). (5) Loan Agreement Issue: Banks may recall entire loan or charge penal interest if CHG-1 not filed timely. RECOMMENDATION: File CHG-1 within 15 days of loan sanction to avoid late filing complications. Taxvio ensures filing within 7 days of document receipt.

What is charge satisfaction (CHG-4) and when to file it?

Charge satisfaction (Form CHG-4) is the process of CLOSING/REMOVING a registered charge from company records after the secured loan is FULLY REPAID. When you file CHG-1, the charge remains on company's ROC records permanently until you file CHG-4 after loan closure. WHY FILE CHG-4? (1) Legal compliance (Section 82 of Companies Act), (2) Frees up charged assets (can be pledged again for new loans), (3) Improves company creditworthiness (shows clean charge register), (4) Required for selling charged assets (buyer's due diligence checks charge status). WHEN TO FILE? CHG-4 must be filed within 30 DAYS of receiving No-Dues Certificate (NOC) from lender. Timeline: Loan fully repaid → Company requests NOC from lender → Lender issues NOC (7-30 days) → File CHG-4 within 30 days of NOC date. Documents required: (1) NOC from lender on letterhead, (2) Board resolution, (3) Proof of full repayment (bank statement/closure letter). Taxvio coordinates with lenders to obtain NOC and files CHG-4 within deadline.

Charge Creation & Satisfaction ROC Filing | CHG-1 & CHG-4

Understanding Charges

What is Charge Creation & Satisfaction?

A CHARGE is a security interest created on company's assets in favor of a lender (bank, NBFC, financial institution, or individual) to secure repayment of a loan. When a company borrows money on a secured basis, the lender requires the company to pledge certain assets as collateral. This pledge creates a CHARGE.

Charge Creation (CHG-1) is the process of REGISTERING this charge with the Registrar of Companies (ROC) under Section 77 of the Companies Act, 2013. This registration is MANDATORY within 30 days of charge creation (loan sanction/disbursement).

Charge Satisfaction (CHG-4) is the process of CLOSING/REMOVING the registered charge from ROC records after the loan is FULLY REPAID. This filing is mandatory under Section 82 within 30 days of receiving No-Dues Certificate (NOC) from lender.

🔒 Types of Charges (Security Interests)

Mortgage (Property/Land/Building)
Transfer of interest in immovable property as security. Two types: (1) Registered Mortgage: Property registered in lender's favor at sub-registrar office. (2) Equitable Mortgage: Deposit of title deeds with lender without registration. Common for: Term loans, working capital limits against property.
Hypothecation (Movable Assets)
Charge on movable assets (vehicles, machinery, stock, inventory, raw materials) WITHOUT transferring possession to lender. Company continues to use assets. Common for: Vehicle loans, machinery loans, working capital loans against stock.
Pledge (Goods/Securities)
Delivery of goods or securities to lender as security WITH transfer of possession. Lender holds goods until loan is repaid. Common for: Loans against goods, pledge of shares/debentures, warehouse receipt financing.
Lien (Right to Retain)
Right of lender to retain possession of goods/securities until debt is paid. Two types: (1) Particular Lien: Specific goods. (2) General Lien: All goods in possession. Common for: Bank's right to freeze deposits if loan defaults.
Charge on Book Debts/Receivables
Assignment of company's receivables (money owed by customers) to lender as security. Common for: Invoice discounting, factoring, working capital loans.
Floating Charge (Entire Undertaking)
Charge on ENTIRE business assets (present and future) without specifying individual assets. Charge 'floats' until company defaults (then crystallizes into fixed charge). Common for: Debenture issues, large corporate loans.

✅ Why is Charge Registration Mandatory?

For Company

• Legal Compliance: Section 77 of Companies Act makes charge registration MANDATORY. Non-filing attracts penalty.
• Loan Agreement Validity: Most loan agreements contain clause "charge to be registered within 30 days, failing which loan becomes immediately repayable". Filing CHG-1 protects company from loan recall.
• Public Disclosure: Charge registration creates public record — other creditors, investors, buyers can see which assets are already pledged. Prevents double-pledging fraud.
• Asset Transparency: Helps in due diligence (M&A, IPO, fundraising) — clear charge status improves company valuation.

For Lender (Bank/NBFC)

• Legal Priority: Registered charge gets PRIORITY over unsecured creditors. If company defaults, lender can recover by selling charged assets FIRST (before other creditors).
• Enforceability: Unregistered charge is VOID against liquidator, administrator, and other creditors (Section 77(2)). Lender loses security if charge not registered.
• NPA Classification: RBI/NHB guidelines require banks/NBFCs to verify charge registration status. Non-registration may lead to loan classification as NPA (non-performing asset).
• Protection from Fraud: Registration prevents company from pledging same assets to multiple lenders (double financing fraud).

⚖️ CHG-1 vs CHG-4 — Key Differences

Aspect	CHG-1 (Creation)	CHG-4 (Satisfaction)
Purpose	Register new charge	Close existing charge
When Filed	Within 30 days of loan sanction	After loan fully repaid
Trigger Event	Loan disbursement	Receipt of NOC from lender
Documents	Loan agreement, sanction letter	NOC, repayment proof
Effect	Assets become encumbered	Assets freed from charge
Penalty (Late)	₹25,000 + 2x-12x fees	₹10,000 + additional fees
Section	Section 77	Section 82

💰 Consequences of Not Registering Charge (CHG-1)

✓ Loss of Lender Priority
If charge not registered within 300 days (even with penalty), lender LOSES priority over charged assets. If company goes into liquidation, lender is treated as UNSECURED CREDITOR (ranks behind all secured creditors).
✓ Loan Recall by Lender
Most loan agreements have clause: 'If charge not registered within 30 days, entire loan becomes immediately repayable'. Bank can invoke this clause and demand full repayment (even if EMI was regular).
✓ Penalty on Company & Directors
Company liable for penalty up to ₹25,000 under Section 450. Each officer in default (directors) liable for up to ₹10,000. ROC can issue notice and initiate prosecution.
✓ Additional MCA Fees
Late filing beyond 30 days attracts additional fees: 2x (31-60 days), 4x (61-90 days), 6x (91-180 days), 10x (181-270 days), 12x (beyond 270 days). Normal fee ₹1,000-2,000 becomes ₹12,000-24,000 if delayed 9+ months.
✓ Credit Rating Impact
Banks/NBFCs report non-registration to credit bureaus (CIBIL, CRIF, Experian). Affects company's credit score and future loan approvals.
✓ Due Diligence Red Flag
Investors, buyers, auditors check charge register during due diligence. Unregistered charges create legal uncertainty — may delay/derail M&A deals, IPO, fundraising.

⚠️ Common Misconceptions About Charges

→Myth: 'Only banks need charge registration, not NBFCs/private lenders.' → WRONG. ALL secured loans require CHG-1 filing, regardless of lender type.
→Myth: 'Charge registration is lender's responsibility.' → WRONG. It's COMPANY'S legal obligation under Section 77. Company gets penalized, not lender.
→Myth: 'Small loans (<₹10 lakh) don't need charge registration.' → WRONG. ALL secured loans (even ₹1 lakh) require CHG-1 if assets are pledged.
→Myth: 'If I repay loan on time, charge automatically gets removed.' → WRONG. You must ACTIVELY file CHG-4 after getting NOC. Charge remains on ROC records forever until CHG-4 is filed.
→Myth: 'Director personal loans to company don't need charge registration.' → DEPENDS. If director loan is UNSECURED, no CHG-1. If SECURED (director takes lien on assets), CHG-1 required.
→Myth: 'Charge registration is one-time per company.' → WRONG. EACH loan requires SEPARATE CHG-1 filing. If you have 3 loans, you need 3 CHG-1 filings.

🎯 When to File CHG-1 vs CHG-4?

File CHG-1 (Charge Creation) When:

• Company avails NEW secured loan from bank/NBFC/lender
• Existing loan is ENHANCED (additional disbursement against same/different collateral)
• Existing unsecured loan is CONVERTED to secured (company pledges assets later)
• Company issues DEBENTURES (creates charge on undertaking)
• MODIFICATION of existing charge (change in assets pledged, charge amount, or lender)

File CHG-4 (Charge Satisfaction) When:

• Secured loan is FULLY REPAID (principal + interest + charges)
• Lender issues NO-DUES CERTIFICATE (NOC) or closure letter
• Debentures are REDEEMED (company buys back debentures)
• Charge is RELEASED by lender (even if partial loan outstanding, but lender agrees to release charge)
• SALE of charged assets (buyer requires clean title — lender releases charge before sale)

Step-by-Step Guide

CHG-1 & CHG-4 Filing Process

📋 CHG-1 Filing Process (Charge Creation)

Complete MCA filing process for CHG-1 Charge Creation — from loan sanction to ROC registration:

Loan Sanction & Charge Creation Event

Day 0 (Event Day)

CHG-1 filing starts when company CREATES a charge (pledges assets as security for loan). Trigger events: (1) Bank/NBFC approves secured loan and issues SANCTION LETTER mentioning collateral/security required. (2) Company and lender execute LOAN AGREEMENT containing charge clause (mortgage deed, hypothecation agreement, pledge agreement). (3) Loan is DISBURSED to company's bank account. (4) For mortgage: Property documents are deposited with lender (equitable mortgage) OR registered in lender's favor (registered mortgage). (5) For hypothecation: Company executes hypothecation deed AND files charge with CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest). IMPORTANT: 30-DAY DEADLINE starts from DATE OF CHARGE CREATION, which is typically: (a) Date of loan agreement execution, OR (b) Date of loan disbursement, OR (c) Date mentioned in charge deed. Whichever is EARLIEST. Example: Loan agreement signed on 1st Jan 2026, loan disbursed on 10th Jan 2026 → 30-day deadline = 31st Jan 2026. Taxvio advises: Inform us IMMEDIATELY after loan sanction (before disbursement) so we can start CHG-1 preparation.

Document Collection from Company & Lender

1-2 days

Collect all documents related to loan and charge. From Company: (1) Board resolution approving loan and charge creation (passed in board meeting before loan agreement). (2) Copy of loan agreement/mortgage deed/hypothecation deed (duly executed by company and lender). (3) Sanction letter from lender (mentioning loan amount, interest rate, security required). (4) List of charged assets with details: (a) For property: Address, survey number, area, market value, title deed details. (b) For vehicles: Registration number, make, model, chassis number, engine number. (c) For machinery: Description, serial number, invoice value, location. (d) For stock/inventory: Description, quantity, value. (e) For receivables: List of debtors, amount. (5) Valuation report of charged assets (if available — banks usually require this). (6) Company CIN, PAN, registered office address. (7) Details of authorized signatory (director name, DIN, DSC). From Lender (Bank/NBFC): (1) Lender details: Name, address, PAN/CIN, contact person. (2) Charge ID (if lender has already filed CHG-1 on MCA portal — some banks file directly). (3) NOC for company to file CHG-1 (some lenders require their consent). Taxvio provides DOCUMENT CHECKLIST and coordinates with lender's loan processing team to obtain necessary documents.

Board Resolution for CHG-1 Filing

1 day

Company must pass BOARD RESOLUTION authorizing CHG-1 filing. Ideally, this resolution should be passed BEFORE loan agreement (along with loan approval resolution). But if missed, pass it now. Board Meeting Requirements: (1) Convene board meeting (physical or video conferencing). (2) Agenda: 'Ratification of charge created in favor of [Lender Name] and approval of CHG-1 filing'. (3) Present loan agreement and charge details to directors. (4) Pass resolution: 'RESOLVED THAT pursuant to Section 77 of Companies Act, 2013, the Board ratifies the charge created on [description of assets] in favor of [Lender Name] against the secured loan of ₹[amount]. RESOLVED FURTHER THAT [Director Name] be and is hereby authorized to file Form CHG-1 with ROC and do all such acts and things as may be necessary.' (5) Prepare Minutes of Board Meeting. (6) If required, file Form MGT-14 with ROC (if company type requires event-based filing — typically for public limited companies). Taxvio provides BOARD RESOLUTION TEMPLATE and MINUTES FORMAT for CHG-1 approval. For small companies, resolution can be passed via circulation.

CHG-1 Form Preparation & Data Entry

1 day

Prepare Form CHG-1 on MCA portal with accurate information. Form CHG-1 contains following sections: (1) PART A - Company Details: CIN, company name, registered office address. (2) PART B - Charge Holder Details: Name of lender (bank/NBFC/individual/company), Address, PAN/CIN, Email, Mobile. (3) PART C - Particulars of Charge: (a) Date of charge creation (from loan agreement/disbursement), (b) Nature of charge (Mortgage / Hypothecation / Pledge / Lien / Charge on book debts / Floating charge), (c) Amount secured by charge (loan amount + interest + charges — total liability). Example: Loan ₹10 lakh + interest ₹2 lakh (estimated) = Charge amount ₹12 lakh. (d) Description of property charged (DETAILED description): For Property: 'All that piece and parcel of land measuring [area] sq.ft, situated at [address], bearing Survey No. [number], alongwith building constructed thereon.' For Vehicles: '[Make] [Model] vehicle bearing registration number [XX-00-XX-0000], Chassis No. [xxx], Engine No. [xxx].' For Stock/Inventory: 'All present and future stock-in-trade, raw materials, finished goods, and inventory of the company located at [warehouse address].' For Receivables: 'All book debts, receivables, and monies due and owing to the company from its customers.' (4) PART D - Short Particulars of Assets Charged: Summarized list in tabular format (Sr.No, Description, Value). (5) PART E - Attachments: (a) Certified true copy of charge instrument (loan agreement/mortgage deed), (b) Board resolution approving charge creation and CHG-1 filing, (c) List of charged assets (if voluminous, attach separate sheet), (d) MOA (if charge is on company's entire undertaking). (6) Declaration by director that information is true and correct. Taxvio prepares CHG-1 form with ERROR-FREE data entry, ensuring all fields are correctly filled as per loan agreement. Form is reviewed by CA/CS before final submission.

MCA E-Filing & Payment of Fees

1 day

File Form CHG-1 on MCA portal (www.mca.gov.in). E-Filing Process: (1) Login to MCA portal using company credentials. (2) Navigate to 'MCA Services' → 'e-Filing' → 'Form CHG-1'. (3) Upload pre-filled CHG-1 form (prepared in Step 4). (4) Attach certified copy of charge instrument (loan agreement/mortgage deed — PDF, scanned and certified by authorized director/company secretary). (5) Attach board resolution (PDF). (6) Verify all information in preview mode. (7) Calculate filing fees based on CHARGE AMOUNT (not loan amount): (a) Up to ₹10 lakh: ₹1,000, (b) ₹10 lakh - ₹50 lakh: ₹2,000, (c) ₹50 lakh - ₹1 crore: ₹3,000, (d) ₹1 crore - ₹10 crore: ₹5,000, (e) Above ₹10 crore: ₹10,000. (8) If filing AFTER 30-DAY DEADLINE, additional fees apply: (a) 31-60 days late: 2x normal fee, (b) 61-90 days: 4x fee, (c) 91-180 days: 6x fee, (d) 181-270 days: 10x fee, (e) Beyond 270 days: 12x fee. (9) Pay fees online via net banking, credit/debit card, or NEFT/RTGS. (10) Digitally sign form using DSC of authorized director (Class 2 or Class 3 DSC). (11) Submit form to MCA. (12) Receive SRN (Service Request Number) as acknowledgment of submission. IMPORTANT: CHG-1 filing beyond 300 DAYS from charge creation is NOT ALLOWED on MCA portal. If deadline crossed 300 days, company must file condonation application with Regional Director (complex process). Taxvio ensures filing well within 30 days to avoid penalties and complications.

MCA Processing & Certificate of Registration of Charge

7-10 days (MCA processing)

After submission, MCA processes CHG-1 form. Processing Timeline: (1) Immediate: SRN generated and email confirmation sent to registered email ID of company. (2) Within 7-10 days: Form goes for MCA scrutiny (automated + manual check by ROC officials). (3) If no defects: MCA issues CERTIFICATE OF REGISTRATION OF CHARGE (Form CHG-1 acknowledgment with ROC stamp and signature). This certificate contains: (a) Company name and CIN, (b) Charge ID (unique 14-digit number starting with 'CHG'), (c) Lender name, (d) Charge amount, (e) Date of charge creation, (f) Date of registration with ROC, (g) Short particulars of charged assets. (4) If defects found: MCA issues DEFECT LETTER listing errors. Company has 15 days to rectify defects and resubmit. Common defects: (a) Incorrect date of charge creation, (b) Mismatch between loan amount and charge amount, (c) Insufficient description of charged assets, (d) Missing certified copy of charge instrument, (e) DSC signature issues. (5) After defect rectification: Form is re-processed and approved (if all defects fixed). Download Certificate: (1) Login to MCA portal. (2) Go to 'MCA Services' → 'Document Related Services' → 'View Public Documents' or 'Track Payment Status'. (3) Enter SRN number. (4) Download approved CHG-1 certificate with MCA stamp. (5) Send copy to lender (bank/NBFC) for their records. IMPORTANT: Certificate of Registration of Charge is LEGAL PROOF that charge is validly created and registered. Lender needs this for their loan documentation. Keep certificate safely — required for future loan enhancements, charge modifications, and CHG-4 filing. Taxvio monitors filing status and ensures approval without defects. If MCA raises queries, we handle rectification promptly.

Update Charge Register & Inform Lender

Ongoing

After MCA approves CHG-1, update company's internal charge register and inform lender. Post-Filing Requirements: (1) CHARGE REGISTER MAINTENANCE: Every company must maintain a REGISTER OF CHARGES (under Section 85) at its registered office. This register contains: (a) Sr. No. (sequential charge numbering), (b) Charge ID (from MCA certificate), (c) Date of charge creation, (d) Lender name and address, (e) Amount secured, (f) Nature of charge (mortgage, hypothecation, etc.), (g) Short description of charged assets, (h) Date of registration with ROC, (i) Date of satisfaction (when CHG-4 is filed later). Update this register immediately after CHG-1 approval. (2) Inform lender: Send copy of CHG-1 certificate to bank/NBFC's loan processing team. Most banks require this as CONDITION PRECEDENT for loan disbursement. If CHG-1 not filed, bank may hold back disbursement or charge penal interest. (3) File CERSAI registration (for hypothecation/mortgage): Apart from MCA, hypothecation and mortgage charges must also be registered with CERSAI (www.cersai.org.in) within 30 days. CERSAI registration is SEPARATE from CHG-1 — both are mandatory. Banks usually handle CERSAI filing, but company should verify. (4) Preserve documents: Keep following in safe custody: (a) Original loan agreement/charge deed (certified copy submitted to MCA, original retained by company), (b) Board resolution and minutes, (c) CHG-1 certificate from MCA, (d) CERSAI registration acknowledgment (if applicable), (e) Valuation report of charged assets. Taxvio provides CHARGE REGISTER TEMPLATE (Excel format) and assists with CERSAI filing coordination.

✅Total Timeline (CHG-1)

5-7 working days from document collection to MCA certificate. Breakdown: Document collection (1-2 days) + Board resolution (1 day) + Form preparation (1 day) + MCA e-filing (1 day) + MCA approval (7-10 days). MUST BE COMPLETED WITHIN 30 DAYS of charge creation to avoid penalties. Taxvio ensures filing within 15 days of receiving loan agreement.

3-5 days (MCA processing)

After submission, MCA processes CHG-4 form. Processing Timeline: (1) Immediate: SRN generated and email confirmation sent. (2) Within 3-5 days: Form goes for MCA scrutiny. (3) If no defects: MCA approves CHG-4 and updates charge status to 'SATISFIED' in public database. Company receives ACKNOWLEDGMENT OF SATISFACTION. (4) If defects found: MCA issues DEFECT LETTER. Company has 15 days to rectify. Common defects: (a) Charge ID mismatch, (b) Missing NOC from lender, (c) NOC not on lender's letterhead, (d) Incorrect date of satisfaction. Download Acknowledgment: (1) Login to MCA portal. (2) Go to 'View Public Documents'. (3) Enter SRN number. (4) Download CHG-4 acknowledgment. (5) Verify charge status is updated to 'SATISFIED' in company's master data. IMPORTANT: After CHG-4 approval, the charge is PERMANENTLY REMOVED from ROC records. Charged assets are FREE from encumbrance and can be pledged for new loans. Taxvio monitors filing status and ensures approval without defects.

Update Charge Register & Return Original Documents

Ongoing

After MCA approves CHG-4, update company's charge register and retrieve original documents from lender. Post-Filing Requirements: (1) UPDATE CHARGE REGISTER: Mark charge as 'SATISFIED' in Register of Charges maintained at registered office. Enter satisfaction date and CHG-4 acknowledgment number. (2) Return of original documents: Lender will return ORIGINAL DOCUMENTS that were held as security: (a) For mortgage: Title deeds of property (sale deed, mother deed, encumbrance certificate), (b) For hypothecation: RC book (vehicle registration certificate), machinery invoices, (c) For pledge: Share certificates, FD receipts. Company should verify all documents are returned and match original list submitted during loan sanction. (3) CERSAI charge cancellation: If charge was registered with CERSAI (for hypothecation/mortgage), lender must file CANCELLATION with CERSAI after loan closure. Company should verify CERSAI status is updated to 'Satisfied'. (4) Preserve documents: Keep following in safe custody: (a) NOC from lender, (b) CHG-4 acknowledgment, (c) Loan closure letter, (d) Final repayment proof, (e) Original property/asset documents (returned by lender). Taxvio provides updated CHARGE REGISTER with satisfaction entries and assists with CERSAI cancellation verification.

✅Total Timeline (CHG-4)

10-15 working days from full loan repayment to MCA acknowledgment. Breakdown: NOC procurement (7-30 days) + Board resolution (1 day) + Form preparation (1 day) + MCA e-filing (1 day) + MCA approval (3-5 days). MUST BE COMPLETED WITHIN 30 DAYS of receiving NOC from lender. Taxvio coordinates with lender to expedite NOC and files CHG-4 within 7 days of NOC receipt.

Documentation Checklist

Documents Required for CHG-1 & CHG-4 Filing

For CHG-1 Filing (Charge Creation)

✓Loan sanction letter from lender (bank/NBFC)
✓Executed loan agreement / mortgage deed / hypothecation deed
✓Board resolution approving loan and charge creation
✓Details of charged assets (property documents, vehicle RC, machinery invoices, stock list, receivables list)
✓Valuation report of charged assets (if available)
✓Lender details (name, address, PAN/CIN, contact person)
✓Company CIN and PAN
✓Digital Signature Certificate (DSC) of authorized director
✓Certified copy of charge instrument (for MCA attachment)

For CHG-4 Filing (Charge Satisfaction)

✓No-Dues Certificate (NOC) from lender on letterhead (mandatory)
✓CHG-1 certificate (Charge ID required)
✓Loan closure letter from lender
✓Proof of full repayment (bank statement / final payment receipt)
✓Board resolution approving CHG-4 filing
✓Company CIN and PAN
✓Digital Signature Certificate (DSC) of authorized director
✓Details of charged assets (for reference)

📝 Asset-Specific Documents (for CHG-1)

•For Property Mortgage: Sale deed, title deed, encumbrance certificate, property tax receipt, survey map
•For Vehicle Hypothecation: Registration certificate (RC book), insurance copy, invoice, chassis/engine number
•For Machinery Hypothecation: Purchase invoice, delivery challan, serial number, location details
•For Stock/Inventory: Stock register, warehouse details, insurance copy, valuation report
•For Receivables: Debtor list with aging, invoice copies, assignment agreement
•For Debentures: Debenture trust deed, list of debenture holders, terms of issue

Basic CHG-1

₹5,999

One-time fee per charge

Included Services

✓CHG-1 form preparation (single charge)
✓Loan agreement review & charge amount calculation
✓Asset description drafting (up to 3 assets)
✓MCA e-filing with normal fees
✓SRN generation and tracking
✓Certificate of Registration download
✓Charge register entry template
✓Email support

Not Included

✗Board resolution NOT included (DIY template provided)
✗CERSAI filing NOT included
✗Lender coordination NOT included
✗No belated filing support

Ideal For

Companies with simple charge (1-3 assets) and existing board processes

Standard (CHG-1 + CHG-4)

₹9,999

One-time fee per charge

Included Services

✓Everything in Basic CHG-1
✓Board resolution drafting & template
✓Lender coordination for document collection
✓Unlimited asset descriptions (no cap)
✓CERSAI filing coordination (verify lender has filed)
✓Belated filing support (additional fees calculated)
✓Defect rectification (if MCA raises queries)
✓CHG-4 filing assistance (when loan closes)
✓NOC procurement support from lender
✓Priority support (WhatsApp + email)

Not Included

✗Complex modifications (CHG-8) charged extra

Ideal For

Most companies with secured loans from banks/NBFCs

Complete (Multi-Charge)

₹19,999

One-time fee per charge

Included Services

✓Everything in Standard
✓Up to 5 charge registrations (CHG-1) in one go
✓Complex charge handling (floating charge, debenture trust deed)
✓Multiple lender coordination
✓Charge register maintenance (annual updates)
✓CERSAI filing assistance (if lender doesn't file)
✓Charge modification filing (CHG-8) — 1 free included
✓Annual charge status report (which charges active/satisfied)
✓Dedicated CA + CS team
✓ROC notice response support (if any)

Ideal For

Companies with multiple loans or complex debenture structures

💼 Add-On Services (Optional)

CHG-4 Filing Only

₹3,999

If CHG-1 was filed by lender/other CA

Belated CHG-1 (31-90 days)

+₹3,000

Additional fee handling & penalty calculation

CERSAI Filing Assistance

₹2,999

If lender doesn't file CERSAI

CHG-8 (Charge Modification)

₹7,999

For loan enhancement/asset change

NOC Procurement from Lender

₹1,999

If lender delays/unresponsive

Charge Register Digitization

₹4,999

Convert physical register to Excel

Client Success Stories

What Our Charge Filing Clients Say

★★★★★

"We took a ₹50 lakh term loan from ICICI Bank and were confused about CHG-1 filing deadline. Taxvio handled entire process — from asset description to MCA filing. They filed CHG-1 in just 5 days (well within 30-day deadline). Bank was impressed with quick turnaround. Highly professional service!"

Vikram Singh, Director

Singh Engineering Pvt Ltd

Noida, UP

★★★★★

"We had 3 different loans (property mortgage, vehicle hypothecation, and stock hypothecation) and needed to file 3 CHG-1 forms. Taxvio's Complete package (₹19,999) was perfect — they handled all 3 charges together, coordinated with multiple lenders, and maintained our charge register. After 2 years, they also helped us file CHG-4 when we closed one loan. Excellent ongoing support!"

Priyanka Mehta, CFO

Mehta Retail Chain Pvt Ltd

Meerut, UP

★★★★★

"We missed the 30-day CHG-1 deadline by 45 days due to internal delays. Bank was threatening to recall the loan. Taxvio filed belated CHG-1 with additional fees, handled bank coordination, and got MCA approval in 10 days. They saved us from loan recall and potential legal issues. Forever grateful!"

Rajiv Kumar, Managing Director

Kumar Auto Components Ltd

Muzaffarnagar, UP

Service Locations

Charge Creation & Satisfaction Services Across India

Taxvio is based in Khatauli, Muzaffarnagar, UP and provides online CHG-1 and CHG-4 filing services for companies across Meerut, Noida, Delhi NCR, Mumbai, Pune, Ahmedabad, Surat, and all cities in India. Complete remote filing with digital document submission, lender coordination, and MCA e-filing.

📍 Khatauli

📍 Muzaffarnagar

📍 Meerut

📍 Noida

📍 Delhi NCR

📍 Mumbai

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FAQs

Frequently Asked Questions — Charge Creation & Satisfaction

Can I file CHG-1 after 30 days? What is the maximum deadline?+

YES, you can file CHG-1 after 30 days, but with ADDITIONAL FEES and PENALTIES. MCA allows belated CHG-1 filing up to 300 DAYS from charge creation date. Timeline: (1) Days 1-30: File with normal fees (₹1,000-10,000 depending on charge amount). (2) Days 31-60: File with 2x fees + penalty (company ₹25,000 + ₹10,000 per director). (3) Days 61-90: 4x fees + penalty. (4) Days 91-180: 6x fees + penalty. (5) Days 181-270: 10x fees + penalty. (6) Days 271-300: 12x fees + penalty. (7) After 300 days: CHG-1 CANNOT be filed on MCA portal. Company must file CONDONATION APPLICATION with Regional Director explaining reasons for delay. Regional Director may condone delay (allow filing) or reject (lender loses priority). RECOMMENDATION: File within 30 days to avoid all these complications. If deadline is approaching, file URGENTLY (even with some missing documents — rectify defects later).

Who is responsible for CHG-1 filing — company or lender?+

COMPANY is LEGALLY RESPONSIBLE for CHG-1 filing (not lender). Section 77 of Companies Act states: 'It shall be the duty of the company creating a charge to register the charge with ROC within 30 days.' If CHG-1 not filed: (1) Company gets penalized (not lender), (2) Directors are liable for penalty, (3) Company faces loan recall risk. However, in PRACTICE, many banks/NBFCs offer to file CHG-1 on behalf of company (they have bulk filing facility on MCA portal). Bank's loan agreement may contain clause: 'Bank will file CHG-1 and deduct filing charges from loan amount.' If bank agrees to file: (1) Company should still MONITOR filing status (don't blindly trust), (2) Request CHG-1 certificate copy from bank after filing, (3) Update company's charge register. If bank doesn't file or delays: Company must file themselves (through CA/CS like Taxvio). SAFEST APPROACH: Company should file CHG-1 themselves (or through Taxvio) to ensure timely compliance and avoid penalty risk.

Do I need to file separate CHG-1 for each loan or one CHG-1 for multiple loans?+

SEPARATE CHG-1 for EACH loan/charge. CHG-1 is filed per CHARGE, not per company. If company has multiple secured loans, each loan requires separate CHG-1 filing. Examples: (1) Company takes ₹10 lakh property mortgage from HDFC Bank → File CHG-1 #1. (2) Same company takes ₹5 lakh vehicle hypothecation from ICICI Bank → File CHG-1 #2 (separate filing). (3) Same company issues debentures of ₹50 lakh creating charge on entire undertaking → File CHG-1 #3. Total: 3 CHG-1 filings (even though it's same company). Each CHG-1 will get unique CHARGE ID (14-digit number). Exception: If SAME lender gives multiple loans against SAME collateral (loan enhancement): (1) Initially: ₹10 lakh loan → File CHG-1 with charge amount ₹12 lakh. (2) After 1 year: Lender enhances loan to ₹15 lakh (additional ₹5 lakh) against SAME property. → File CHG-8 (Modification of Charge) to update charge amount to ₹18 lakh (not new CHG-1). Taxvio's Complete package (₹19,999) covers up to 5 CHG-1 filings — ideal for companies with multiple loans.

What happens if lender does not give NOC for CHG-4 filing?+

If lender unreasonably delays or refuses NOC after loan is fully repaid, company has following options: (1) SEND FORMAL DEMAND LETTER: Write to lender's branch manager/credit manager requesting NOC. Mention: (a) Loan account number and date of full repayment, (b) Amount repaid (with bank statement proof), (c) Request NOC within 7 days, (d) Warn that delay is violating RBI guidelines (lenders must issue NOC within 30 days of full repayment). (2) ESCALATE TO LENDER'S SENIOR MANAGEMENT: If branch doesn't respond, escalate to lender's regional head/zonal head/customer grievance cell. (3) FILE COMPLAINT WITH RBI OMBUDSMAN: If lender is bank/NBFC, file complaint at RBI Banking Ombudsman portal (www.rbio.gov.in). RBI will direct lender to issue NOC within 30 days. (4) LEGAL NOTICE: Send legal notice through advocate demanding NOC + compensation for mental harassment and business loss (due to inability to sell/pledge assets). (5) COURT ORDER: If lender still doesn't issue NOC, file civil suit for 'specific performance' (court will order lender to issue NOC). Usually doesn't reach this stage — RBI complaint is enough. (6) ALTERNATIVE: File CHG-4 with BANK STATEMENT showing loan fully repaid + Company's own certification that loan is closed. Attach explanation: 'Lender has not issued NOC despite multiple requests. Company is filing CHG-4 based on bank statement proof of full repayment.' MCA MAY accept this if supporting evidence is strong. Taxvio assists with NOC procurement — we send follow-up emails/letters to lender and escalate if needed.

Is CERSAI filing mandatory along with CHG-1?+

YES, CERSAI filing is MANDATORY for HYPOTHECATION and MORTGAGE charges (in ADDITION to CHG-1). CERSAI = Central Registry of Securitisation Asset Reconstruction and Security Interest (www.cersai.org.in). It's a government registry maintained by Ministry of Finance for tracking secured loans. Applicability: (1) Hypothecation charges (vehicles, machinery, stock) → CERSAI filing MANDATORY. (2) Mortgage charges (property, land, building) → CERSAI filing MANDATORY. (3) Pledge charges (goods, securities) → CERSAI filing NOT required. (4) Floating charges (entire undertaking) → CERSAI filing NOT required. Deadline: CERSAI filing must be done within 30 DAYS of charge creation (same as CHG-1). Who files? Usually LENDER files CERSAI (banks/NBFCs have direct access to CERSAI portal). But company is ULTIMATELY RESPONSIBLE — if lender doesn't file, company must file. Consequences of non-filing: (1) Lender cannot invoke SARFAESI Act (cannot take possession of charged assets without court order if company defaults). (2) Lender faces RBI penalty (non-compliance with prudential norms). (3) Company faces difficulty during asset sale (buyer checks both MCA and CERSAI — mismatch creates legal issue). How to verify? After CHG-1 filing, ask lender: 'Have you filed CERSAI registration?' Request CERSAI acknowledgment copy. Similarly, after CHG-4 filing, ensure lender files CERSAI CANCELLATION. Taxvio coordinates CERSAI filing verification with lenders as part of Standard & Complete packages.

Can I modify a registered charge? How to file CHG-8?+

YES, you can modify a registered charge by filing FORM CHG-8 (Particulars of Modification in Charge). When to file CHG-8? (1) LOAN ENHANCEMENT: Original loan ₹10 lakh → Enhanced to ₹15 lakh against SAME collateral. → File CHG-8 to update charge amount from ₹12 lakh to ₹18 lakh. (2) CHANGE IN CHARGED ASSETS: Original: Property A pledged → Now: Property A + Property B pledged (lender accepts additional security). → File CHG-8 to add Property B to charge description. (3) CHANGE IN LENDER: Original lender: HDFC Bank → New lender: ICICI Bank (loan transferred via assignment/takeover). → File CHG-8 to update lender details. (4) CHANGE IN CHARGE TERMS: Interest rate change, tenure extension, security substitution, etc. → File CHG-8 if these changes affect charge particulars. Documents required: (1) Original CHG-1 certificate (Charge ID needed), (2) Loan modification agreement/supplementary agreement between company and lender, (3) Board resolution approving modification and CHG-8 filing, (4) Details of changes (old vs new comparison), (5) DSC of authorized director. Deadline: CHG-8 must be filed within 30 DAYS of modification. Fee: ₹1,000-2,000 (based on modified charge amount). IMPORTANT: CHG-8 is NOT a replacement of CHG-1 — it's an AMENDMENT. Original Charge ID remains same, only particulars are updated. Taxvio offers CHG-8 filing at ₹7,999 (included free in Complete package).

What is the difference between secured and unsecured loan in terms of CHG-1 filing?+

SECURED LOAN vs UNSECURED LOAN — CHG-1 Filing Requirement: (1) SECURED LOAN: (a) Lender takes COLLATERAL/SECURITY (company pledges assets — property, vehicle, machinery, stock, etc.). (b) Creates CHARGE on pledged assets. (c) CHG-1 filing is MANDATORY within 30 days. (d) If company defaults, lender can SEIZE and SELL charged assets to recover dues (via SARFAESI Act or court order). (e) Examples: Term loans, vehicle loans, property mortgages, working capital limits against stock/receivables, debenture issues. (2) UNSECURED LOAN: (a) Lender does NOT take any collateral/security. (b) NO charge created on company assets. (c) CHG-1 filing is NOT required (no charge to register). (d) If company defaults, lender has to file civil suit and get court decree to recover (cannot directly seize assets). (e) Examples: Personal loans to company, director loans, shareholder loans, unsecured term loans, unsecured working capital. MIXED SCENARIO: Partially secured loan: (1) Company takes ₹20 lakh loan. (2) ₹15 lakh is secured against property (charge created). (3) ₹5 lakh is unsecured (no charge). → File CHG-1 for ₹18 lakh (₹15L principal + interest on secured portion). ₹5 lakh unsecured portion is disclosed in DPT-3 (not CHG-1). Taxvio clarification: ONLY file CHG-1 if loan agreement explicitly mentions creation of charge/security interest. If loan is unsecured, no CHG-1 needed (but may require DPT-3 filing if loan is from director/shareholder).

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Charge Creation &Satisfaction FilingCHG-1 & CHG-4 Service

What is Charge Creation & Satisfaction?

CHG-1 & CHG-4 Filing Process

📋 CHG-1 Filing Process (Charge Creation)

Loan Sanction & Charge Creation Event

Document Collection from Company & Lender

Board Resolution for CHG-1 Filing

CHG-1 Form Preparation & Data Entry

MCA E-Filing & Payment of Fees

MCA Processing & Certificate of Registration of Charge

Update Charge Register & Inform Lender

✅ CHG-4 Filing Process (Charge Satisfaction)

Full Loan Repayment & Closure

Obtain No-Dues Certificate (NOC) from Lender

Board Resolution for CHG-4 Filing

CHG-4 Form Preparation & Data Entry

MCA E-Filing & Payment of Fees

MCA Processing & Charge Satisfaction Acknowledgment

Update Charge Register & Return Original Documents

Documents Required for CHG-1 & CHG-4 Filing

Common Mistakes in Charge Filing

Missing 30-Day Deadline for CHG-1 Filing

Incorrect Charge Amount in CHG-1

Inadequate Description of Charged Assets

Not Filing CHG-4 After Loan Closure

Filing CHG-4 Without Valid NOC

Not Coordinating with Lender for CERSAI Filing

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Charge Creation & Satisfaction Services Across India

Frequently Asked Questions — Charge Creation & Satisfaction

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DPT-3 Filing

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File CHG-1 Within 30 Days — Protect Lender Priority

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