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TMI BlogAll you need to know about Form CHG-1 for Registering a ChargeX X X X Extracts X X X X X X X X Extracts X X X X ..... All you need to know about Form CHG-1 for Registering a Charge - By: - Ishita Ramani - Corporate Laws / IBC / SEBI - Dated:- 26-10-2023 - - Introduction The act of filing a charge provides security and enables the charge holder to collect the claim amount from the security that the company has charged in the charge holder s favor in the event that the charge holder defaults on the loan. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this blog, we will discuss the form to be filed to register a charge, which is eForm CHG-1 for company registration . What is a charge? According to Section 2(16) of the Companies Act of 2013 , a Charge is any interest or lien placed as security on a company s assets, real estate, or any of its projects, and it may consist of a mortgage. What is Form CHG-1 ? Every company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must submit details to the relevant Registrar of Companies within a given time frame in order to register charges that are created or updated. The charge can be made against a variety of assets located in India or elsewhere, and it can be made in favor of lenders like banks or financial institutions. The charge must be submitted in eForm CHG-1 to the relevant ROC. What is the purpose of regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stering a charge? The purpose of filing a charge for company registration is to protect both the lender and the third party. Any third party that deals with the same property must be aware that the property is already under charge with a lender, and all parties must agree on the charge details before any transaction is completed. What papers must be submitted with the e-form CHG-1 ? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The following documents must be presented with Form CHG 1 : Instruments, like a loan agreement or a sanction letter, for the creation or modification of charges. Information about every joint charge holder. How can you submit an electronic version of the CHG-1 form ? The steps below should be followed in order to file e-form CHG-1 for the registration of creatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or modification of the charge: 1. Collect the necessary paperwork, such as loan agreements or sanction letters for the charge reduction. 2. Fill out the CHG-1 e-form completely in accordance with Rule 3(1) of the Companies Rules, 2014 , and Sections 77 , 78 , 79, and 384 of the Companies Act, 2013. There are two sections to the e-form CHG-1 : Part I and Part II. The charge s sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifics are in Part I, while the charge holder s details are in Part II. 3. The charge holder and the business must both sign the document. 4. Submit the e-form CHG-1 online using the MCA portal. 5. The costs for filing e-form CHG-1 differ depending on the kind and date of the charge creation or modification. 6. Following submission, you can check the form s status on the MCA porta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to make sure it was processed correctly. What is the due date for filing Form CHG-1 ? The date on which the charge is created or modified decides the due date for filing eForm CHG-1 . For instance, if the charge is created or modified on or after November 5, 2018, the form needs to be filed within the 30 days of such date. What provisions are governed by Form CHG-1 ? Sections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77 , 78 , 79, and 384 and Rule 3 (1) of the Companies Act, 2013 are the provisions that govern the filing of eForm CHG-1 . Summary To summarize, eForm CHG-1 is a crucial document that companies has to file in order to record any amendments to their charges. The objective of filing eForm CHG-1 is to fulfill the legal duty placed on company registration by Company Laws manda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting them to register information about charges created or modified within a specific time period. The form must be filed within 30 days of the date charge creation or modification. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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