All companies are mandated to register specifics regarding the creation or modification of charges within a designated timeframe with the Registrar of Companies. These charges can encompass various asset types, either within or outside India, and may be in favor of entities like banks or financial institutions. Indian companies must file using eForm CHG-1, while foreign companies direct filings to ROC, Delhi.
The requirement for Form CHG-1 stems from Sections 77, 78, and 79, alongside Section 384 and Rule 3 of the Companies Rules, 2014. Section 77 imposes the responsibility on companies to register a charge, whether within or outside India, within 30 days of its inception. However, specific allowances are outlined in the Companies (Amendment) Ordinance, 2019, depending on the timeline of charge creation.
If a company fails to register a charge within the stipulated 30-day period as per Section 78, the charge-holder can apply to the Registrar for registration. Section 79 extends charge registration to companies acquiring property subject to a charge or modifying existing registered charges.
For foreign companies, Section 384 applies provisions from sections 71, 92, 128, VI, and XIV with necessary modifications and adaptations. Furthermore, Companies Rules, 2014, under Rule 3, mandates the submission of charge particulars in Form No. CHG-1 or CHG-9, signed by both the company and the charge holder, within 30 days of charge inception or modification.
Filing Deadlines and Additional Fees in Form CHG-1
Deadline for Form CHG-1: For charges created or modified on or after November 2, 2018, the filing deadline is 30 days from the creation/modification date.
Additional Fees for Form CHG-1:
- Charges created or modified before November 2, 2018, allowing filing within 300 days of creation or up to six months from May 1, 2019, entail escalating fees based on delay periods.
- Charges created or modified after November 2, 2018, entail differing additional fees until July 31, 2019, and thereafter, varying for small companies and other entities based on the delay duration.
Additional Fees Table for Charges Created/Modified Before 02.11.2018:
| Delay Period | All Forms |
|---|---|
| Up to 30 days | 2 times normal fees |
| More than 30 days and up to 60 days | 4 times normal fees |
| More than 60 days and up to 90 days | 6 times normal fees |
| More than 90 days and up to 180 days | 10 times normal fees |
| More than 180 days | 12 times normal fees |
Additional Fees Table for Charges Created/Modified On or After 02.11.2018:
| Delay Period | Small Companies & One Person Company | Other Companies |
|---|---|---|
| Up to 30 days | 3 times normal fee | 6 times normal fee |
| More than 30 days and up to 90 days | 3 times normal fees + ad valorem fee (0.025% of the amount secured, max. Rs. 1 lakh) | 6 times normal fees + ad valorem fee (0.05% of the amount secured, max. Rs. 5 lakh) |
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