Registration of Charges
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Ongoing compliance requirement
Filing and Maintenance Requirements
Section 77 read with Rule 3 of the Registration of Charges Rules provides that every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, shall register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in Form CHG-1, with the Registrar within thirty days of its creation and in Form CHG-9 within 30 days of its modification . If the charge is not registered within 30 days, the RoC may on application by the company allow registration within 270 days on payment of additional fees. If charge is not registered within 270 days, application will have to be made to the Central Government for extension of time.
Further, within 30 days from date of payment or full satisfaction of a charge, the company shall give intimation of the same in Form CHG-4.
The company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.
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