Registering a charge in Form CHG-1: the 30-day rule, the extensions and why the bank cares

Last updated 23 Oct 2026 · India

Short answer. Under section 77 of the Companies Act 2013, a company that creates a charge on its assets (for example, security for a bank loan or hypothecation of a vehicle) must register it with the Registrar in Form CHG-1 within 30 days of creation. The Registrar may allow later registration on application, with additional fees and, after a longer delay, ad valorem fees under the proviso to section 77(1); check the current limits on the MCA portal before relying on them. A charge that is not registered is not taken into account by the liquidator or any creditor (section 77(3)), which is why lenders insist on CHG-1. Satisfaction of a charge is reported in CHG-4 within 30 days of repayment (section 82).

Which forms

Event	Form	Time
Charge created or modified (most assets)	CHG-1	30 days
Charge for debentures	CHG-9	30 days
Loan repaid, charge satisfied	CHG-4	30 days (s.82)

Common mistakes

Leaving it to the bank. The duty is the company's (s.77). If the company does not file, the charge holder may file under s.78 and recover the fees from the company.
Forgetting vehicle loans. Hypothecation of a company car is a charge.
Not filing CHG-4 after repayment. Old charges then still show against the company on MCA, which slows the next loan.
Wrong charge amount or asset description versus the sanction letter.

Checklist

Sanction letter and hypothecation/mortgage deed
DSC of a director and of the charge holder
CHG-1 within 30 days of the deed
CHG-4 within 30 days of full repayment

Frequently asked questions

What is the time limit for filing CHG-1?

30 days from the date the charge is created (section 77(1) of the Companies Act 2013), with later filing allowed by the Registrar only on payment of additional or ad valorem fees.

Is a car loan to a company a charge?

Yes. Hypothecation of the vehicle in favour of the lender is a charge that should be registered.

Which form is filed when the loan is repaid?

Form CHG-4, within 30 days of payment or satisfaction (section 82).

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 23 Oct 2026.

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