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What is satisfaction of charge?
Satisfaction of charge is the process of informing the Registrar of Companies (ROC) that a company has repaid a loan or debt for which a charge was created on its assets.
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Which form is used for satisfaction of charge?
Form CHG-4 is used to file satisfaction of charge with the ROC.
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What is the time limit for filing CHG-4?
Form CHG-4 must be filed within 30 days from the date of repayment of the loan or debt.
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Can the time limit for filing CHG-4 be extended?
Yes, the ROC may allow filing up to 300 days with additional fees and approval from the Regional Director in certain cases.
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Who is responsible for filing satisfaction of charge?
The company is primarily responsible for filing CHG-4 with the ROC after repayment of the charge.
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What happens if CHG-4 is not filed on time?
Failure to file CHG-4 on time may lead to penalties, additional fees, and the charge remaining active in ROC records.
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What documents are required for filing CHG-4?
Documents include the filled CHG-4 form, lender’s NOC or letter confirming repayment, proof of repayment, and DSC of the authorized signatory.
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Is lender confirmation mandatory for satisfaction of charge?
Yes, a No Objection Certificate (NOC) or letter from the lender confirming repayment is mandatory.
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What is the purpose of filing satisfaction of charge?
The purpose is to update ROC records and legally confirm that the charge on company assets has been cleared.
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Can a company raise new loans without filing satisfaction of charge?
No, unsatisfied charges may create obstacles in raising new loans as lenders check updated ROC records.
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Is satisfaction of charge applicable to all types of companies?
Yes, all companies registered under the Companies Act that create charges must also file satisfaction of charge after repayment.
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Who signs the CHG-4 form?
The CHG-4 form must be digitally signed by a director or company secretary authorized by the company.
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What are the penalties for late filing of CHG-4?
Late filing attracts additional fees, and continued non-filing can lead to prosecution and heavy penalties under the Companies Act.
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Does the ROC issue any certificate after satisfaction of charge?
Yes, once the filing is approved, the ROC issues a certificate confirming satisfaction of charge.
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Can satisfaction of charge be filed without proof of repayment?
No, proof of repayment and lender confirmation are mandatory for filing CHG-4.
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What is the role of Form CHG-8?
Form CHG-8 is used to apply for condonation of delay in cases where CHG-4 cannot be filed within the permitted time.
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Can satisfaction of charge be filed if the lender disputes repayment?
No, in case of disputes, satisfaction cannot be filed until the matter is resolved between the company and lender.
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Is satisfaction of charge required for partial repayment of a loan?
No, satisfaction of charge is filed only after full repayment of the loan or debt.
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How long does it take for ROC to approve satisfaction of charge?
It generally takes 7–15 working days for the ROC to verify and approve the satisfaction of charge filing.
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How does Ebizfiling help in satisfaction of charge filing?
Ebizfiling helps companies prepare documents, file Form CHG-4, ensure proper digital signing, and coordinate with ROC until approval is granted.