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MCA Revised Timelines & Fees: Simplified Charge Filing Process


In the language of companies, a charge means creating a right to put a security over a company’s assets for the sake of compensating debt or other finances which is due. "In this case if the company does not honour the contract, the creditor who holds the charge on the secured asset can reclaim the asset (property or equipment) to recover their dues". To assure transparency and to prevent any financial harm to stakeholders, these charges are called for registration with the Ministry of Corporate Affairs (MCA) for a stipulated time.

Just late, MCA amended the terms apply for being accused, and also the fines. Afore companies had 30-days grace on registration of the charge from being made, or when any modification was taking place. However, if they missed the deadline of seven days after the receipt of the notice, additional fees and negotiations for the condonation of delay (obtaining permission to file after the deadline) with the MCA will follow. Therefore, this process can result in the complex and costly process.

This statement offers a possibility for the government to reach efficiency and to reward operators motivated to make it on time. The current tax break in UK now allows companies to file all their new changes within the 6 months span from creation or modification of charges with no extra fees. Such extended time period enables involvement of business entities within given period of time still maintain significance of registration. Finally, in the situation of a 6-month grace period, the ad valorem fees will be levied based on the delay in filing from the date on which the secured asset is specified.

Such amendments involve both pluses and minuses that will influence businesses. The extension of the grace period enables them to garner such information better along with the process of completing submitting the application. Additionally, the revamp of the fee framework targets increasing timely submission of financial statements that will be done through imposing higher fees for any delay. Nevertheless, it is important that Companies and Their lawyers are up to date with the tax requirements and requirements, as the late filing of returns and tax does not put the companies in any difficulties or expense.

Pre-revision Timelines and Fees

Pre-revision Timelines: Companies had 30 days from the creation or modification of a charge to file it with the MCA.

Pre-revision Fees:

  • No additional fees: if the filing was done within 30 days.
  • Additional fees: applicable for delays beyond 30 days.

The specific fees varied based on the delay period and were calculated as a percentage of the fee payable for timely filing.

Additionally, companies might have needed to file a separate application for "condonation of delay" to register the charge after a certain timeframe, incurring further costs.

Revised Timelines and Fees

Period of Delay

Due Date for Filing Charge

Additional / Ad Valorem Fees


Up to 30 days

Within 30 days of creation/modification


No additional fees


31 - 6 months

Within 6 months of creation/modification


No additional fees (Grace period)

More than 6 months

Beyond 6 months of creation/modification

Ad Valorem fees based on the delay and the value of the secured asset


  • Up to 30 days: Companies still have the same grace period of 30 days to file the charge with the MCA without any additional This timeframe allows for completing the filing process without immediate penalty.
  • 31 - 6 months: A significant change is the introduction of a 6-month grace period following the initial 30 days. During this period, companies can still file the charge without any additional fees. This extended timeframe provides them with more flexibility to gather necessary documentation and complete the filing process.
  • More than 6 months: If the filing is not completed within the 6-month grace period, companies will be subject to ad valorem fees. These fees are calculated as a percentage of the value of the secured asset and increase based on the extent of the The specific fee structure is typically outlined by the MCA and may vary depending on the duration of the delay.

Understanding Ad Valorem Fees:

Ad valorem (meaning "according to value") refers to fees or taxes calculated based on the value of a particular asset or transaction. In the context of charge filing, the ad valorem fees are calculated as a percentage of the value of the asset secured by the charge. This means that the higher the value of the secured asset, the higher the ad valorem fee will be for a late filing.

The introduction of ad valorem fees creates a stronger incentive for timely filing. While companies benefit from the extended grace period, significant delays can result in substantial additional costs due to the ad valorem charges.

Key Points and Implications

The revised timelines and fees for charge filing introduce several key changes:

  • Extended grace period: Companies now have a 6-month window after the creation or modification of a charge to file it with the MCA without incurring any additional This provides greater flexibility compared to the previous 30-day deadline.
  • Ad valorem fees for late filings: After the grace period, companies face increasing ad valorem fees based on the delay and the value of the secured asset. This incentivizes timely filings as significant delays can lead to substantial additional costs.
  • Simplified process: The need for "condonation of delay" applications for filing beyond a certain timeframe has been removed, potentially streamlining the process for companies.

Potential Impacts:

  • Reduced compliance burden: The extended grace period offers companies more time to gather necessary documentation and manage their filing workload, potentially easing the compliance burden.
  • Increased cost for late filers: The introduction of ad valorem fees discourages delays by imposing significant financial penalties for late filings. This can encourage companies to prioritize timely registration of charges.
  • Importance of staying informed: Companies need to be aware of the revised timelines and fee structure to ensure they file charges within the appropriate timeframe and avoid unexpected costs.

Challenges and Considerations:

  • Monitoring timelines: Companies need to effectively track deadlines and ensure they file charges within the grace period to avoid incurring additional fees.
  • Internal processes: Companies may need to adjust their internal processes to ensure timely completion of charge filing procedures within the revised timeframe.
  • Seeking professional guidance: Companies with complex situations or uncertainties should consider seeking advice from legal or financial professionals to navigate the revised regulations and ensure compliance.

Overall, the revised timelines and fees aim to strike a balance between providing companies with reasonable flexibility and ensuring timely registration of charges. By understanding the key changes, potential impacts, and considerations, companies can effectively navigate the revised regulations and fulfil their filing obligations efficiently.


A company may break regulatory rules if it does not keep track of the most recent changes that are needed for submitting fees. The Ministry of Corporate Affairs (MCA) very recently gave updates about this process of registration and revises the timeframes and the amount of fee that fail to reach this balance of being both flexible and timely.

New filings can now be introduced within 6 months, without further expenses and corporations can utilize this grace period efficiently to sort out paperwork and other filing formalities. Yet the fee-to- value margin exceeds a certain amount for the delay – regardless of what a security is valued at. This is the reason why expedited filing is of key importance. Though the revised provisions might be a relief to companies and they won’t require “condonation of delay” applications anymore but firms should be on the alert and in these times when principled punctuality, strict adherence to time schedules and explicit declaration of deadlines are the only norms, they have to be more and more alert.

To strike a balance with the new regulations, adhering to deadlines and readjusting the internal procedures become the task to be fulfilled. But these companies should consult professionals if they face some complex situations or uncertainties in order to get some legal and financial assistance. In the same way, looking at MCA website or the through public notifications will help get complete details and we will have other sources for a deeper comprehension.

Through constant awareness and undertaking the required procedures, companies should be in a position to ensure efficient and cost-effective compliance with file regulations.

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