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VISWA K

Developer

Published on: Jun 15, 2026

What Is Satisfaction Of Charge?

Introduction

Satisfaction of Charge is the process of informing the Registrar of Companies (RoC) that a company has fully repaid its secured loan and the charge created on its assets has been cleared. Under the Companies Act, 2013, every company that has registered a charge with the Ministry of Corporate Affairs (MCA) must notify the RoC once the liability is completely settled. This helps maintain accurate company records and ensures transparency in corporate borrowings.

Meaning of Satisfaction of Charge

When a company borrows money from banks or financial institutions by offering its assets as security, a charge is created on those assets. After the company repays the loan in full, the lender issues confirmation stating that no dues remain outstanding. The company must then file Form CHG-4 with the RoC to officially record the satisfaction of charge.

Why is Satisfaction of Charge Important?

Filing satisfaction of charge is important because it updates MCA records and confirms that the lender no longer has rights over the secured assets. It also improves the company’s financial credibility and helps avoid compliance issues in the future. Failure to file the satisfaction of charge within the prescribed timeline may result in additional penalties and legal complications.

Time Limit for Filing

As per the Companies Act, 2013, companies are generally required to file Form CHG-4 within 30 days from the date of full repayment of the secured loan. Delayed filing may require additional approvals and payment of extra fees.

Documents Required

The following documents are commonly required for filing satisfaction of charge:

  • No Due Certificate from the lender
  • Board Resolution authorising the filing
  • Digital Signature Certificate (DSC)
  • Loan repayment proof
  • Details of the original charge registered with MCA

Conclusion

Satisfaction of Charge is an essential ROC compliance process that confirms the closure of secured borrowings by a company. Filing Form CHG-4 on time helps maintain accurate MCA records, avoids penalties, and ensures smooth future financial transactions for the business.

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