CHG-1 (Charge Creation)
Quick Reference for Your Business
Loan Taken • Charge Registration – everything you need to know about CHG-1.
01
Documents Required
Loan / sanction letter
from the bank or lender
Charge / hypothecation / mortgage deed
For security
Board resolution
authorising the charge
Particulars of the property / assets
charged
DSC
of director and the charge holder (bank)
02
Key Facts & Timelines
| Point | Details |
|---|---|
| What it is | Registering a charge (security) created on company assets for a loan |
| When to file | Within 30 days of creating the charge |
| Extension | Up to 60 days (with additional fee), then up to 120 days (ad valorem fee) |
| Filed by | Company; if it fails, the charge holder (bank) can file |
| Certificate | ROC issues CHG-2 registration certificate |
Note: File CHG-1 whenever your company takes a secured loan — bank term loan, working capital, vehicle/equipment finance against company assets. Banks usually insist on it. An unregistered charge is not valid against a liquidator or other creditors.
03
What Goes Wrong Without Filing
Charge becomes void
An unregistered charge is void against a liquidator and creditors.
Bank escalation
Lenders flag and may freeze disbursal until the charge is registered.
Penalty on default
Non-registration attracts penalties on the company and officers.
Missed window
Beyond 120 days, only Central Government condonation can help.
04
Why Companies Trust M/s Durganjali & Associates
A real, qualified Chartered Accountant
Not an agent — a CA who registers your charges within the deadline, coordinating with your bank.
5 years of practice
Across companies, firms, individuals and trusts — Tax, GST and MCA compliance.
You never miss a date
We track every form and deadline — no avoidable late fees or penalties.
Clear updates in your language
Simple updates in Telugu and English — you always know where things stand.
Honest, practical advice
Straight answers you can act on — no jargon, no overselling.
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