MCA1 min read
Charge
A security interest created by a company on its assets in favour of a lender under Section 2(16) of Companies Act 2013. Must be registered with ROC within 30 days of creation using Form CHG-1. Failure to register makes it void against liquidator.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Charge in Indian corporate law?▼
A security interest created by a company on its assets in favour of a lender under Section 2(16) of Companies Act 2013. Must be registered with ROC within 30 days of creation using Form CHG-1. Failure to register makes it void against liquidator.
Q2. Why is Charge important for compliance?▼
Charge is governed by the Ministry of Corporate Affairs under the Companies Act, 2013. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Charge?▼
Charge is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with MCA regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to MCA:
MCA CHG-1 Webform Filing Guide: Complete Instructions for Charge Registration under Companies Act, 2013
Published: 12 August 2026
RBI Issues Draft Credit Valuation Adjustment (CVA) Framework Directions, 2026 for Commercial Banks
Published: 7 August 2026
MCA Extends Companies Compliance Facilitation Scheme 2026 (CCFS-2026) to 31st August 2026
Published: 8 July 2026