Satisfy a Charge explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To record satisfaction of a charge, file e-Form CHG-4 with the Registrar within 30 days of full repayment under Section 82, ideally attaching the lender's NOC. Delayed filing is allowed within 300 days with additional fees. On approval, the Registrar issues a CHG-5 memorandum of satisfaction.
Overview
Once a secured loan is fully repaid, the charge on the company's assets no longer serves any purpose and must be closed on the Registrar's records. This is called "satisfaction of charge". Filing e-Form CHG-4 clears the charge from the company's records, which matters greatly for future borrowing and due diligence.
When It Is Required & Legal Basis
Section 82 of the Companies Act, 2013 requires a company to give intimation of the payment or satisfaction in full of any registered charge to the Registrar within 30 days from the date of such payment or satisfaction. Rule 8 of the Companies (Registration of Charges) Rules, 2014 prescribes e-Form CHG-4 for this intimation.
Step-by-Step Process
- Repay the debt. Ensure the secured loan is fully repaid and obtain the lender's confirmation/NOC.
- Prepare CHG-4. Fill e-Form CHG-4 with the charge ID, date of satisfaction and amount satisfied.
- Attach NOC. Attach the charge-holder's letter/NOC confirming full satisfaction.
- Sign and certify. Have the form signed by the company and certified by a practising professional.
- File within 30 days. File CHG-4 within 30 days of the date of satisfaction, paying the applicable fee.
- Obtain CHG-5. The Registrar records satisfaction and issues the CHG-5 memorandum; update the register of charges.
Forms, Attachments & Fees
| Form / Item | Purpose | Timeline |
|---|---|---|
| CHG-4 | Intimate full satisfaction of charge | Within 30 days of satisfaction |
| CHG-4 (delayed) | Late filing with additional fees | Up to 300 days |
| Lender NOC | Confirm debt fully repaid | Recommended attachment |
| CHG-5 | Memorandum of satisfaction issued | On approval |
Timeline & Due Dates
File within 30 days of satisfaction. Delayed filing is permitted within 300 days of satisfaction on payment of additional fees. If even 300 days lapse, the company must seek condonation of delay from the Central Government (Regional Director) before the satisfaction can be recorded.
Penalty for Delay / Non-compliance
Late CHG-4 attracts additional fees, and default in intimation can attract penalty on the company and officers in default under Section 86. Leaving a satisfied charge open on the records is a red flag in lender and investor due diligence and can hold up fresh financing.
Practical Tips
- Collect the lender's NOC on the day of final repayment so CHG-4 can be filed immediately.
- Do not let satisfied charges linger on record — they surface as "open charges" in due diligence.
- File within 30 days; the 300-day route costs more and beyond it needs condonation.
- Update the internal register of charges to reflect the closure.