Step 1: Visit MCA Portal and Download CHG-1
Go to: https://www.mca.gov.in
Navigate to:
MCA Services → E-Forms → Download E-forms
Search for CHG-1 and download the latest version.
✔ Step 2: Enter Basic Company Details
Fill in the details such as:
- Corporate Identification Number (CIN)
- Company Name (auto-populates)
- Registered Office Address
- Email ID of the company
✔ Step 3: Select Purpose of the Form
Choose one of the following:
- Creation of Charge
- Modification of Charge
- Additional Security
✔ Step 4: Enter Lender (Charge Holder) Details
Provide details of the lender:
- Name of bank / financial institution
- Address
- Contact information
- Category of charge holder
✔ Step 5: Provide Charge Details
Enter the financial details:
- Amount secured by the charge
- Date of charge creation / modification
- Nature of charge (mortgage, hypothecation, etc.)
- Brief description of assets charged
- Terms of repayment
✔ Step 6: Attach Required Documents
Upload:
- Loan agreement
- Instrument of charge
- Sanction letter
- Property details
- Board resolution
Make sure attachments are in PDF format and clear.
✔ Step 7: Sign the Form with Digital Signature
The form must be digitally signed by:
- Director / Manager / CEO / CFO
- Charge Holder (bank), in certain cases
If necessary, a practicing CA/CS/CMA may need to certify the form.
✔ Step 8: Upload CHG-1 to MCA Portal
Go to:
MCA Services → Upload E-Forms
Upload the digitally signed form.
Pay the applicable filing fee based on the company’s authorized capital.
Once submitted, you will receive an SRN (Service Request Number) for tracking.
✔ Step 9: Track Filing Status
Go to:
MCA → Track SRN Status
Check if:
- Approved
- Pending for processing
- Sent for resubmission
Once approved, the ROC issues a Certificate of Registration of Charge (Form CHG-2).
Advantages of Filing CHG-1 on Time
- Ensures legal recognition of the lender’s security
- Helps maintain transparent financial records
- Avoids heavy penalties and condonation procedures
- Helps companies secure loans easily in the future
Penalties for Late Filing
If CHG-1 is not filed within 30 days:
- Additional fees apply for delayed filing
- ROC may require condonation of delay
- Charge may become void against the lender
- Directors may be held liable for non-compliance
Common Mistakes to Avoid
- Incorrect charge amount
- Missing attachments
- Wrong CIN entry
- DSC token not registered
- Not coordinating with lender for documentation
SavingMantra recommends verifying all documents before form submission.
Frequently Asked Questions (FAQ)
1. What is the purpose of filing CHG-1?
To legally register a charge created on a company’s assets.
2. Can CHG-1 be filed without lender documents?
No, loan agreement and charge instrument are mandatory.
3. What if CHG-1 is not filed within 300 days?
A condonation application must be made to the Central Government.
4. Who signs the CHG-1 form?
Director/Manager and sometimes the charge holder (bank).
5. Is modification of charge also filed through CHG-1?
Yes, CHG-1 is used for both creation and modification of charges.
Conclusion
Filing CHG-1 is a crucial legal requirement for companies that create or modify charges on their assets. Accurate and timely filing ensures that the company stays compliant and that the lender’s security is legally protected.
The information provided in this blog is for general informational and educational purposes only and should not be construed as legal, tax, or professional advice. While every effort has been made to ensure accuracy and compliance with the applicable provisions of the Companies Act, 2013 and related rules, laws and regulations may change over time and interpretations may vary based on specific facts and circumstances.
All services are subject to applicable laws, rules, and government approvals prevailing at the time of execution.