Quick Summary
Charge is a mortgage or security interest created on company assets like property, machinery, or inventory to secure borrowings.
A Charge is a security interest or mortgage created on the assets of a company to secure a loan or debt. It must be registered with the Registrar of Companies within 30 days of creation.
Types of Charges
- Fixed Charge: On specific identifiable assets (land, building)
- Floating Charge: On circulating assets (stock, debtors)
- Mortgage: Legal charge on immovable property
- Hypothecation: Charge on movable goods
- Pledge: Delivery of goods for security
- Lien: Right to retain possession
Registration Requirements
- File Form CHG-1 within 30 days
- Attach original charge instrument
- Pay prescribed fees
- ROC issues Charge Identification Number (CIN)
Satisfaction of Charge
When loan is repaid, file Form CHG-4 within 30 days of satisfaction to release the charge.
Key Points
- Security interest on company assets
- Must be registered with ROC within 30 days
- Filed in Form CHG-1
- Penalty for delay: ₹1,000 per day
- Satisfaction filed in Form CHG-4
- Public can search registered charges