# Charge Creation & Satisfaction — CHG-1 / CHG-4

> When a company secures a loan on its assets, the charge must be registered with the Registrar in Form CHG-1 (or CHG-9 for debentures) within 30 days of creation, extendable by the Registrar with additional fees. Modifications use the same form. When the loan is repaid, Form CHG-4 is filed within 30 days to record satisfaction. An unregistered charge isn't valid against a liquidator or other creditors.

Practice: Conversions, Changes & Closure — https://www.industax.com/services/business-changes/

Banks usually file the charge with the company, but the obligation is the company's. Delays cost additional fees, and a charge that is never registered can leave the lender unsecured in insolvency — which lenders guard against by refusing to disburse until it is filed.

When a loan closes, companies often forget CHG-4, leaving old charges on their MCA record that show up in due diligence and slow down new borrowing. We reconcile the charge register with the MCA index and clear stale entries.

## Key facts

| Item | Detail |
| --- | --- |
| Creation/modification | CHG-1 (CHG-9 for debentures) within 30 days |
| Satisfaction | CHG-4 within 30 days of repayment |
| Law | Sections 77–87, Companies Act 2013 |
| Unregistered charge | Not valid against liquidator and creditors |

## Who needs this

- Companies taking secured loans or working capital limits
- Companies that have repaid loans but still show open charges
- Companies preparing for due diligence

## What's included

- CHG-1 / CHG-9 filing with the lender
- Modification filings
- CHG-4 on repayment
- Charge register reconciliation

## Documents

- Sanction letter and loan agreement
- Hypothecation or mortgage deed
- No-dues certificate from the lender (for CHG-4)

## Process

1. **Register** — Charge filed within 30 days.
2. **Maintain** — Modifications recorded.
3. **Satisfy** — CHG-4 filed on repayment.

## FAQs

### What if the charge wasn't filed within 30 days?

The Registrar can allow registration within an extended period on payment of additional fees. Beyond that, a condonation of delay is needed from the Central Government, so it is best filed promptly.

### Who signs CHG-1?

Both the company and the charge holder (usually the bank) digitally sign the form.

### Do LLPs register charges too?

Yes. LLPs report creation, modification and satisfaction of charges under the LLP Act and Rules using the LLP charge forms.

## Official sources

- Ministry of Corporate Affairs — MCA21 portal: https://www.mca.gov.in/

---
Canonical page: https://www.industax.com/services/business-changes/charge-registration-chg-1
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.