# Registration of Charges – Ad Valorem Fee & Timelines
## What is Ad Valorem Fee?
Ad valorem is a Latin term meaning "according to the value". In the context of charge registration, ad valorem fee is calculated as a percentage of the amount secured by the charge.
## Three-Step Timeline for Registration of Charge
The Act provides a staggered timeline with increasing fees as delay grows:
| Step | Action | Time Period | Total Days from Creation | Fees Payable |
|---|---|---|---|---|
| 1st Step | Registration of charge with ROC | Within 30 days of creation of charge | 30 days | Normal Fees |
| 2nd Step | If failed to file within 30 days | Within a further 30 days (i.e., within 60 days of creation) | 60 days | Normal Fees + Additional Fees |
| 3rd Step | If failed to file within 60 days | Registrar may, on an application, allow registration within a further 60 days | 120 days | Normal Fees + Additional Fees + Ad Valorem Fees |
## Issue of Certificate of Registration
- On registration of a charge, the Registrar shall issue a Certificate of Registration in Form CHG-2 to:
- The company, and
- The charge-holder (person in whose favour the charge is created), as applicable.
- The certificate so issued is conclusive evidence that the requirements of Chapter VI of the Act and the rules thereunder relating to registration of creation of charge have been complied with.
## Key Takeaways
- Normal fee → up to 30 days.
- Normal + Additional → 30 to 60 days.
- Normal + Additional + Ad Valorem → 60 to 120 days (only with Registrar's permission on application).
- After 120 days from creation, registration of the original charge cannot be done under Section 77.