Satisfaction of Charge
Quick Answer
Satisfaction of Charge India refers to the process of recording the full repayment or discharge of a charge (such as a mortgage or debenture) created by a company on its assets. Under the Companies Act, 2013, every company must file a satisfaction of charge with the Registrar of Companies (ROC) within 30 days of the charge being fully satisfied.
Satisfaction of Charge — detailed explanation below
Governing Act — Satisfaction of Charge India
The process of satisfaction of charge is governed by Section 82 of the Companies Act, 2013, read with Rule 8 of the Companies (Registration of Charges) Rules, 2014. These provisions require a company to give intimation to the Registrar of Companies (ROC) of the payment or satisfaction of a charge in full, within 30 days of such satisfaction, in Form CHG-4.
Government Department & Website for Satisfaction of Charge India
The Ministry of Corporate Affairs (MCA) is the government department responsible for regulating charges. The online portal for filing satisfaction of charge is the MCA21 portal (www.mca.gov.in). All forms, including Form CHG-4, are filed electronically through this portal.
Satisfaction of Charge India Application Process
The process for filing satisfaction of charge involves the following steps:
- Prepare Form CHG-4: The company must fill in details of the charge, including the charge ID, date of satisfaction, and particulars of the instrument evidencing satisfaction.
- Attach Documents: Required documents include a copy of the instrument of satisfaction (e.g., receipt, no-objection certificate from the charge holder).
- Digital Signature: The form must be digitally signed by a director or the company secretary.
- Upload on MCA Portal: File the form on the MCA21 portal along with the prescribed fee.
- ROC Verification: The ROC examines the form and, if satisfied, issues a certificate of registration of satisfaction of charge.
Key Forms Required for Satisfaction of Charge India
The primary form for satisfaction of charge is Form CHG-4. In certain cases, where the charge is created by a company registered under a special Act, Form CHG-5 may be used. Both forms are available on the MCA portal.
Eligibility Criteria for Satisfaction of Charge India
Any company that has created a charge and has fully satisfied the debt or obligation secured by the charge is eligible to file satisfaction of charge. The charge must have been previously registered with the ROC. The company must have a valid Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the signatory.
Timeline for Satisfaction of Charge India
The satisfaction of charge must be filed within 30 days of the date of full satisfaction. If not filed within this period, the company may apply for condonation of delay by paying additional fees. The ROC typically processes the form within 30 days of filing, subject to completeness.
Fees for Satisfaction of Charge India
The government-prescribed fees for filing Form CHG-4 are as follows:
| Authorised Share Capital | Fee Amount (INR) |
|---|---|
| Up to ₹1,00,000 | ₹200 |
| ₹1,00,001 to ₹5,00,000 | ₹300 |
| ₹5,00,001 to ₹25,00,000 | ₹400 |
| ₹25,00,001 to ₹1,00,00,000 | ₹500 |
| Above ₹1,00,00,000 | ₹600 |
Additional fees for delay may apply if the form is filed after 30 days.
Frequently Asked Questions
What is Satisfaction of Charge India?
Satisfaction of Charge India is the process of informing the Registrar of Companies that a charge (like a loan or debenture) secured on a company's assets has been fully repaid. It is filed using Form CHG-4 under the Companies Act, 2013.
Why is Satisfaction of Charge India important for compliance & annual filings?
Filing satisfaction of charge ensures that the company's register of charges is accurate, which is a key part of compliance & annual filings. Failure to file can lead to penalties and affect the company's creditworthiness.
What is the time limit for filing Satisfaction of Charge India?
The satisfaction of charge must be filed within 30 days of the date of full satisfaction. If delayed, additional fees apply and the company must file a condonation application.
What documents are required for Satisfaction of Charge India?
The main document is a copy of the instrument evidencing satisfaction, such as a receipt or no-objection certificate from the charge holder. The company must also have its Digital Signature Certificate ready.
Can Satisfaction of Charge India be filed after the due date?
Yes, but with additional fees. The company must file Form CHG-4 along with a condonation of delay application and pay the prescribed additional fee.
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