About:

As Companies Act, 2013 defines "charge" as 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. A charge will created by the borrower company on its assets and properties (Its may include Future tangible or intangible property), in favor of the lender, a bank or a financial institution.

 Creation of Charge:

When company borrow money form banking or non-banking company than as per the companies act, 2013 companies needs to registered all charges whether short term or long term borrowing form in India or abroad within 30 days with the ROC in the form of CHG-1 along with instrument creating the Charge.

 Modification of Charge:

Modification of Charges applicable when there is any changes in previous borrowing including any terms, condition, amount etc.. modification of charge same as the creation of charge as per the companies Act, 2013. For the modification of the charge need to file CHG-1 within 30 days to ROC along with supporting documents.

Satisfaction of Charge:

When charge was created by the borrower in favour of the lender and whole amount has been fully repaid and other terms and condition is fulfilled than charge is fully satisfied as per the companies Act, 2013 and borrower has to file CHG-4 within 30 days to the ROC for satisfaction of Charge to remove the charge which is registered in the name of Borrower.

Why Charges are Important:

• To maintain Charge Registered.
• To avoid unnecessary addition fees and litigation.
• Lander get a surety that their funds are safe and would be repaid along with the principal amount & interest.