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.

Types of Charges:

✅ Fixed Charge: Created on specific assets like land, buildings, or machinery.
✅ Floating Charge: Covers assets like stock, cash flow, and receivables, which may change over time.
✅ Modification of Charge: Any changes to an existing charge (loan amount, interest rate, security type) must be updated with the ROC.
✅ Satisfaction of Charge: Once a charge is repaid, it must be formally satisfied and removed from company records.

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Why is Charge Registration Important?

✔ Mandatory Under Companies Act, 2013 – Every charge must be registered with the ROC.
✔ Protects Lender’s Rights – Ensures transparency in financial agreements.
✔ Prevents Legal Disputes – Helps avoid legal complications related to unregistered charges.
✔ Enhances Creditworthiness – Companies with registered charges gain lender confidence for future funding.
✔ Avoids Heavy Penalties – Delay in charge filing attracts financial penalties and non-compliance issues.

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Consequences of Non-Compliance

❌ Penalty for Late Filing: Companies face penalties up to ₹5 lakh, and officers in default may be fined ₹50,000.
❌ Legal Risks & Asset Issues: Unregistered charges may lead to legal disputes and loss of asset control.
❌ Loss of Creditworthiness: Companies failing to register charges may struggle to get future loans.
❌ ROC Rejection of Charge Satisfaction: Failure to register charge satisfaction may cause issues in company financial records.

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Why Choose Legal Boss for Charge Registration Services?

✅ MCA Compliance Experts – Ensuring proper charge filing and documentation.
✅ Fast & Hassle-Free Online Process – No lengthy paperwork, everything handled digitally.
✅ Timely Submission & Error-Free Filings – Avoiding rejections and penalties.
✅ Affordable Pricing & Personalized Support – Best suited for startups, SMEs, and large corporations.
✅ End-to-End Compliance Management – From charge creation to satisfaction, we cover everything.

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