Satisfaction of Charge

DIR-3 KYC Online is a streamlined process for directors to submit their Know Your Customer (KYC) details electronically, ensuring compliance with regulatory requirements & maintaining transparency in corporate governance.

  • No Hidden Charges
  • Lowest Price Guarantee

No Hidden Charges

Lowest Price Guarantee

Learn More!
See Pricing!

Talk to an Expert

Your information is safe with us. | Privacy Policy

Four Steps to Obtain Your Certificates/Licenses

Fill the Form

Provide business details

Add to cart

Pay the required fee online

Submit Documents

Upload required papers

Certificate delivery

Official Document Delivery

Overview of Satisfaction of Charge

A Satisfaction of Charge refers to the process by which a company clears its debt obligations secured against its assets, as registered with the Registrar of Companies (ROC). When a company fully repays the secured debt, it must file a form with the ROC to remove the charge from the register, indicating that the asset is no longer encumbered.

The procedure requires the company to provide proof of payment and the lender’s acknowledgment that the debt has been satisfied. Once the ROC processes and approves the form, it issues a certificate of satisfaction, effectively releasing the asset from the charge. This step is crucial for maintaining clear and accurate company records and for the company’s ability to freely use or transact the asset in the future.

Relevant sections, Rules and forms at a Glance

ParticularsSection(S), Rule(S) and Name of e-Form(S)
The companies Act, 2013Sections 82, 83, 85, 87, 173 and 403
The Companies (Registration of Charges) Rules, 2014Rules 8, 10 and 12
The Companies (Registration of offices and fees) Rules, 2014Rules 7, 8 and 12
Secretarial Standard-1 of ICSIClauses 3, 4, 5, 6, 7 and 8
e-form to be filedCGH-4

Applicants for Charge Satisfaction

Who Can Apply for Charge Satisfaction Registration

Screenshot 2024-06-18 124050

Minimum Requirements

Need to be updated

Proof of Payment

Board Resolution

No Objection Certificate (NOC)

Form CHG-4 Filing

Documents for Satisfaction of Charge

To incorporate a Public Limited Company in India, the following documents are required

Copy of Board Resolution

For filing form regarding satisfaction of charge. It should be duly signed by a director other than the concerned/authorized director. It is advisable to get it signed by at least two directors.

Letter from the Charge Holder
(No Objection Certificate)

Stating that the amount has been satisfied.

Procedure for satisfaction of charge

Following these steps ensures that the satisfaction of charge is properly recorded and legally binding.

The company pays off the debt secured by the charge to the satisfaction of the charge holder.

The company obtains a No Objection Certificate from the charge holder, stating that the debt has been fully paid and they have no objection to the satisfaction of the charge.

The company should pass a board resolution authorizing the filing of the satisfaction of charge with the Registrar of Companies (ROC).

Within 30 days of the payment to the charge holder, the company should file Form CHG-4 along with the prescribed fee. This form should be accompanied by the NOC from the charge holder and the board resolution.

Upon receiving the application, the ROC will verify the documents and details provided. If everything is in order, the ROC will register the satisfaction of charge.

Once the satisfaction is registered, the charge will be removed from the company’s records at the ROC, indicating that the asset is no longer encumbered by the charge.

Form to be Filed

S.noName of the FormAttachmentsTime period for filing
1Form CHG-4Letter of the charger holder starting that the amount has been satisfied and no amount is dueWithin 30 days from the date of payment or satisfaction/ within 300days from the date of payment or satisfaction with the approval of Registrar (in case it is not filed within 300 days, condonation of delay to be filed with Central Government (delegated to Regional Director))

Frequently Asked Questions

What is Form CHG-4 used for?

Form CHG-4 is used to notify the Registrar of Companies about the satisfaction (full repayment) of a charge previously registered against a company’s assets.

Who needs to file Form CHG-4?

The company that has fully paid off the debt or obligation secured by a registered charge must file Form CHG-4 to update the RoC records, indicating that the charge is no longer active.

When should Form CHG-4 be filed?

Form CHG-4 must be filed within 30 days from the date on which the charge is satisfied (i.e., the debt secured by the charge is fully repaid).

What details are required in Form CHG-4?

Details required include the date of satisfaction of the charge, details of the charge (such as the date of creation and the amount), and confirmation that the obligation secured by the charge has been fully satisfied.

What documents need to accompany Form CHG-4?

Accompanying documents typically include a statement from the charge holder (e.g., the lending institution) confirming the satisfaction of the charge and a copy of the board resolution authorizing the filing of the form.

Is there a filing fee for Form CHG-4?

Yes, there is a filing fee associated with Form CHG-4, which can vary depending on the authorized capital of the company and the amount previously secured by the charge.

What are the consequences of not filing Form CHG-4 on time?

Failing to file Form CHG-4 within the prescribed period can lead to penalties and continuation of the charge on the RoC's records, which could inaccurately reflect the company’s financial liabilities.

Can Form CHG-4 be filed online?

Yes, Form CHG-4 can be filed online through the MCA portal. It must be digitally signed by the director or company secretary authorized by the board.

What happens after Form CHG-4 is filed?

Once Form CHG-4 is filed and processed, the RoC updates its records to reflect that the charge over the company’s assets has been satisfied, effectively releasing the asset from encumbrance.

Can errors in filed Form CHG-4 be corrected?

Yes, if errors are discovered after filing, the company should inform the RoC and file a corrected Form CHG-4. Supporting documentation explaining the corrections may also be required.