{"id":7797,"date":"2018-03-14T14:00:14","date_gmt":"2018-03-14T08:30:14","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=7797"},"modified":"2025-06-23T17:48:37","modified_gmt":"2025-06-23T12:18:37","slug":"penalty-charge","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/penalty-charge\/","title":{"rendered":"Penalty Charge Under Companies Act 2013: An Overview"},"content":{"rendered":"<h2>Penalty Charge<\/h2>\n<p><strong>&nbsp;<\/strong>Meaning of Charge as per <a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\">companies Act 2013<\/a><\/p>\n<p>As per section <strong>2 (16) charge<\/strong> means<\/p>\n<ul>\n<li>An interest or lien<\/li>\n<li>Created on the assets or <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Property&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Property refers to the legal designation of ownership over valuable items or assets held by an individual or a business. This ownership grants the holder certain legal rights to use, consume,(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/property\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>property<\/a> of the company or<\/li>\n<li>Any of its undertakings or both as security and includes a mortgage<\/li>\n<\/ul>\n<h2>Registration of Charge<\/h2>\n<p>The company needs to borrow funds for the requirement of the <a href=\"https:\/\/enterslice.com\/company-registration\"><strong>Company Registration<\/strong><\/a>, for which the Board of Directors authorizes to create a charge on the assets of the company to provide security for repayment. Following is the procedure of Registration of Penalty for Charge by a company<\/p>\n<ul>\n<li>To conduct a Board Meeting for availing the facility of the <a href=\"https:\/\/enterslice.com\/learning\/roc-creation-charges-process-india\/\">creation of charge<\/a>. A special resolution needs to be passed and authority to execute necessary documents has to be fixed at the same Board Meeting.<\/li>\n<li>Form MGT 14 has to be filed within 30 days with the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Registrar\">Registrar.<\/a><\/li>\n<li>After the creation of Penalty for Charge, make necessary entries in Charge Register in Form CHG 7 and get it authenticated by Director or Secretary.<\/li>\n<li>Submit Form CHG 1 or CHG 9 with the Registrar within 30 days from its creation.<\/li>\n<li>Attach appropriate documents with Form CHG 1 or CHG 9<\/li>\n<li>After the due compliance, the Registrar will issue a certificate of creation of Penalty Charge in Form CHG 2.<\/li>\n<\/ul>\n<h2>&nbsp;Coadunation of Delay for Registration of Charge<\/h2>\n<ul>\n<li>Where the instrument creating a charge is not filed within 300 days from its creation, the registrar cannot register the Penalty&nbsp; Charge unless it is condoned by the Central Government.<\/li>\n<li>For coadunation of delay, an application has to be filed in Form CHG 8 along with the requisite fees with Central Government.<\/li>\n<li>The order passed by CG needs to be filed with the registrar in Form INC 28.<\/li>\n<\/ul>\n<h2>Charge Register<\/h2>\n<ul>\n<li>Every company shall maintain at their register office a Penalty Charge Register in Form CHG 7<\/li>\n<li>Copy of instrument creating charge should be kept at the registered office of the company.<\/li>\n<li>Every entry in the Charge register should be authenticated by the Director or secretary of the company.<\/li>\n<li>The Charge register should be maintained by the company all the time.<\/li>\n<li>The instrument creating charge or modification of charge should be maintained for a period of 8 years from the date of its satisfaction.<\/li>\n<\/ul>\n<h2>The Penalty for non-filing of Charge:<\/h2>\n<p>If any company fails to file a Form with the Registrar or contravene any provision of this Chapter, the company shall be punishable with a fine. The penalty charge non-filing shall not be less than 1 Lakhs rupees but it may extend to 10 Lakhs rupees. The officer in default for the company shall be punishable with imprisonment up to 6 months or with fine which shall not be less than 25 thousand rupees but which may extend to 1 lakh rupees or both.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Penalty Charge &nbsp;Meaning of Charge as per companies Act 2013 As per section 2 (16) charge means An interest or lien Created on the assets or property of the company or Any of its undertakings or both as security and includes a mortgage Registration of Charge The company needs to borrow funds for the requirement [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":89134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1322],"tags":[51,1717],"acf":{"service_id":"1"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Penalty Charge Under Companies Act 2013: An Complete Overview<\/title>\n<meta name=\"description\" content=\"A penalty Charge Registration and Compliance register should be authenticated by the Director or secretary of the company under company act, 2013.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/penalty-charge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Penalty Charge Under Companies Act 2013: An Complete Overview\" \/>\n<meta property=\"og:description\" content=\"A penalty Charge Registration and Compliance register should be authenticated by the Director or secretary of the company under company act, 2013.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/penalty-charge\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-14T08:30:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-23T12:18:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/03\/Penalty-Charge-Under-Companies-Act-2013-An-Overview.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1218\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":822,"readingTime":2,"nextPost":{"id":7821,"slug":"market-size-of-nbfc-non-banking-financial-companies-in-india"},"prevPost":{"id":7804,"slug":"nbfc-factoring"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/03\/Penalty-Charge-Under-Companies-Act-2013-An-Overview.jpg","postTerms":"Company Registration","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7797"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=7797"}],"version-history":[{"count":1,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7797\/revisions"}],"predecessor-version":[{"id":89135,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7797\/revisions\/89135"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/89134"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=7797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=7797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=7797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}