Why registration matters
Registration gives public notice of the lender's security. An unregistered charge is void against the liquidator and other creditors, which is why banks insist on it — and why a company's loan documents aren't complete until CHG-1 is filed.
Satisfaction matters to the company: until CHG-4 is filed, the register shows the asset as encumbered, which can hold up a new loan or a sale.
Documents required
- Loan agreement, sanction letter and security documents.
- Board resolution approving the borrowing and charge.
- Details of the assets charged.
- For satisfaction: the lender's no-dues or satisfaction letter.
How we handle it
Collect documents
From the company and the lender.
File CHG-1
Signed by the company and the lender, within 30 days.
Modify
Whenever terms or security change.
File CHG-4
Within 30 days of repayment.
Common types of charge
| Charge | Over | Typical use |
|---|---|---|
| Hypothecation | Movable assets that stay with the company — stock, receivables, vehicles | Working capital limits, vehicle loans |
| Mortgage | Immovable property | Term loans and loans against property |
| Pledge | Goods or securities delivered to the lender | Loans against shares or warehouse receipts |
| Floating charge | A changing class of assets | General working capital security |
Who files and signs
CHG-1 is digitally signed by an authorised director or officer of the company and by the charge holder, and certified by a practising professional. The lender's signature is why the form usually needs co-ordinating with the bank's legal team — and why we start as soon as the sanction terms are final.
Practical notes from our engagements
- Satisfaction never filed. Old repaid loans still show on the register years later. Clear them.
- Enhancements not registered. An increase in a limit is a modification that needs filing.
How we handle charges
We file CHG-1 with the lender, register modifications, and file CHG-4 as soon as a loan is closed.
Related services
Frequently asked questions
When must a charge be registered?
Within 30 days of its creation, in Form CHG-1. The Registrar can allow a limited further period with additional fees.
What if a charge isn't registered?
It's void against the liquidator and any creditor.
When is CHG-4 filed?
Within 30 days of full repayment or satisfaction.
Who signs CHG-1?
Both the company and the charge holder.
Is a modification of charge filed?
Yes, when the terms or security change.
Does an LLP register charges?
Yes, LLPs register charges with the ROC under the LLP rules, in the LLP forms prescribed for that purpose.
What does the charge register show?
The charges created, modified and satisfied, with the charge holder and amount. Lenders and investors search it before transacting.