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Company Law

Charge Creation and Satisfaction (CHG-1)

When a company borrows against its assets, it creates a "charge" that must be registered with the RoC in Form CHG-1, and satisfied in CHG-4 on repayment.

Written byEditor, TaxClue
Published
Updated
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4 min
Questions
4 answered
  • High Complexity
Topic
Company Law
Published
August 20, 2026
Last updated
Aug 20, 2026
Reading time
4 min
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Last updated: August 2026Verified against: Government sources

Charge Creation and Satisfaction explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

When a company borrows against its assets, it creates a "charge" that must be registered with the RoC in Form CHG-1, and satisfied in CHG-4 on repayment.

Charge creation (CHG-1)

  • File CHG-1 within 30 days of creating or modifying a charge
  • Attach the loan/charge documents
  • Delay beyond 30 days attracts higher additional fees; beyond limits the charge may not be registered

Satisfaction (CHG-4)

  • File CHG-4 within 30 days of full repayment of the loan
  • The RoC updates the register and issues a certificate of satisfaction

Why it matters

A registered charge gives the lender priority and provides public notice of the encumbrance; unregistered charges are void against a liquidator.

Frequently Asked Questions

What is Form CHG-1?

The form to register the creation or modification of a charge on company assets, within 30 days.

What is Form CHG-4?

The form to intimate satisfaction (repayment) of a charge, within 30 days.

What if a charge is not registered?

It can be void against a liquidator and creditors, and attracts penalties.

Can the 30-day charge deadline be extended?

Yes, with higher additional fees within the further period allowed.

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Quick recapKey facts & short answers

Key Facts About Charge Creation and Satisfaction

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is Form CHG-1?

The form to register the creation or modification of a charge on company assets, within 30 days.

What is Form CHG-4?

The form to intimate satisfaction (repayment) of a charge, within 30 days.

A penalty is the visible cost of a delay; the lost time and credibility are the larger part.

— TaxClue Compliance Desk

Charge Creation and Satisfaction: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Why This Matters

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in company law are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end company law support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in company law are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 4 questions readers ask most on this topic.

The form to register the creation or modification of a charge on company assets, within 30 days.

The form to intimate satisfaction (repayment) of a charge, within 30 days.

It can be void against a liquidator and creditors, and attracts penalties.

Yes, with higher additional fees within the further period allowed.

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