Clean MCA Records
Removes the “Open” charge status from company master data. Lenders and investors see no outstanding encumbrances.
Company Compliance
Close Company Charge Registration
File Form CHG-4 to register loan repayment with ROC and remove encumbrance from company records. Processing in 5 to 7 working days .
2,000+Charge Closures
30-DayStatutory Deadline
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SAMPLE
Charge Satisfaction Filing Online Certificate
Government Authority / MCA — sample official certificate
Illustrative sample. Your official certificate is issued after approval.
01
30-Day Deadline
File CHG-4 within 30 days of satisfaction date
02
Section 82
Mandatory under Companies Act, 2013
03
CHG-5 Outcome
Certificate of Satisfaction issued by ROC
04
5–7 Working Days
Filing timeline + 14-day ROC notice period
OVERVIEW
What is Satisfaction of Charge?
Satisfaction of charge is the legal process of recording closure of a registered charge (loan security interest) with the Registrar of Companies by filing Form CHG-4 under Section 82 of the Companies Act, 2013, after full repayment of a secured loan.
When a company fully repays a secured loan, the charge registered via CHG-1 must be formally removed from MCA records. The company files CHG-4 within 30 days of the satisfaction date. The ROC sends a 14-day notice to the charge holder; if no objection is raised, the ROC issues Form CHG-5 (Certificate of Satisfaction).
Governing LawCompanies Act, 2013 (Sec 82)
Primary FormForm CHG-4
Filing Deadline30 days from full repayment
Processing Time5–7 days + 14-day notice
WHEN TO FILE
When to File Charge Satisfaction
| Scenario | Description | Action Required |
|---|---|---|
| Term Loan Fully Repaid | Full principal and interest repaid | File CHG-4 within 30 days of bank’s zero balance confirmation |
| Overdraft / CC Facility Closed | Cash credit or overdraft formally closed | File CHG-4 after receiving facility closure letter |
| Debentures Redeemed | Secured debentures redeemed | File CHG-4 referencing debenture trust deed charge |
| Mortgage Released | Property mortgage released after full repayment | File CHG-4 and obtain mortgage release deed |
| Vehicle / Equipment Loan Paid | Hypothecation cleared after final payment | File CHG-4 for the specific hypothecated asset |
| Working Capital Facility Terminated | Revolving facility formally terminated | File CHG-4 after facility termination confirmation |
The “satisfaction date” is when the lender confirms zero outstanding balance — not the date of the last EMI payment.
BENEFITS
Benefits of Timely Charge Satisfaction Filing
Improved Creditworthiness
Banks review MCA records before approving new loans. Satisfied charges demonstrate responsible repayment history.
Section 82 Compliance
Filing within 30 days satisfies Section 82 and avoids penalties under Section 86 of up to ₹10 lakh for the company.
Avoids Late Filing Fees
Timely filing avoids additional fee multipliers of 1x to 12x on the base government fee.
Better Company Valuation
Clean charge records support higher valuations during M&A, fundraising or IPO due diligence.
Director Protection
Officers in default face imprisonment up to 6 months or fine of ₹25,000–₹1 lakh under Section 86. Timely filing protects directors.
DOCUMENTS REQUIRED
Documents Required for Charge Satisfaction Filing
1. No Dues Certificate (NDC)
Original on lender’s letterhead with authorized signatory stamp, confirming zero outstanding balance.
2. Charge Release Letter
Referencing the Charge ID and loan account number, confirming release of the security interest.
3. Final Loan Closure Statement
Showing zero balance, dated within 30 days of the satisfaction date.
4. Certified Board Resolution
Authorizing CHG-4 filing, referencing charge ID, loan account and satisfaction date.
5. Copy of Original Charge Instrument
Loan agreement, mortgage deed or debenture trust deed that created the charge.
6. DSCs (Director + Bank)
Class 3 DSC of authorized director and of the charge holder’s authorized signatory, both registered on MCA.
FILING PROCESS
How to File Form CHG-4: Step-by-Step Process
1. Obtain No Dues Certificate from Lender
Request NDC and charge release letter from the bank after full repayment. Typically takes 3–5 working days. Send a formal request with loan account number and charge ID.
2. Pass Board Resolution
Convene a board meeting and pass a resolution authorizing a specific director to file Form CHG-4. Reference charge ID, loan account and satisfaction date.
3. Prepare Form CHG-4 on MCA Portal
Log in to MCA V3, fill Form CHG-4 with charge ID, satisfaction date and charge holder details. Upload NDC, board resolution and charge instrument copy.
4. Get Practising Professional Certification
A qualified practising professional must verify and certify Form CHG-4 with membership number and digital signature. Mandatory for filing.
5. Affix Digital Signatures
Authorized director and charge holder’s authorized signatory both digitally sign the form with Class 3 DSCs registered on MCA.
6. Pay Government Fee and Submit
Pay ₹200–₹600 based on authorized capital. Submit electronically and note the SRN for tracking.
7. ROC Sends 14-Day Notice to Charge Holder
ROC issues a 14-day notice under Section 82. Charge holder may raise objections. If none, ROC proceeds to register satisfaction.
8. Receive Certificate of Satisfaction (CHG-5)
After the notice period, ROC issues Form CHG-5. Charge status changes from “Open” to “Satisfied”. Update the company’s Register of Charges under Section 85.
DEADLINES
Time Limit, Deadlines and Extension for CHG-4
| Timeline | Action Required | Fee Impact |
|---|---|---|
| Within 30 days | File CHG-4 normally | Normal government fee (₹200–₹600) |
| 31 to 300 days | File CHG-4 with additional fee | Normal fee + 1x to 12x multiplier |
| Beyond 300 days | File CHG-8 for condonation | CHG-8 fee + professional cost ₹5,000–₹15,000 |
| After CG condonation | File INC-28 + CHG-4 with ROC | Normal fee + condonation process cost |
| Delay Period (After 30 Days) | Fee Multiplier | Example (₹600 Base) |
|---|---|---|
| Up to 15 days | 1x | ₹600 additional |
| 15 to 30 days | 2x | ₹1,200 additional |
| 30 to 60 days | 4x | ₹2,400 additional |
| 60 to 90 days | 6x | ₹3,600 additional |
| 90 to 180 days | 10x | ₹6,000 additional |
| 180 to 270 days | 12x | ₹7,200 additional |
CONDONATION
Condonation of Delay in Charge Satisfaction
When Required
If CHG-4 is not filed within 300 days of the satisfaction date, a separate condonation application (Form CHG-8) to the Regional Director is required.
Process
File CHG-8 with Central Government / Regional Director. After order, file INC-28 and then CHG-4 with the ROC.
Cost
Condonation typically costs ₹5,000 to ₹15,000+ in professional and government fees, plus significant time.
Best Practice
Always file within 30 days of the lender’s zero balance confirmation to avoid additional fees and condonation entirely.
PENALTIES
Penalties for Late or Non-Filing of CHG-4
Section 86 – Company
Fine of ₹1,00,000 to ₹10,00,000 for failure to file satisfaction of charge.
Section 86 – Officers
Imprisonment up to 6 months or fine of ₹25,000 to ₹1,00,000 for officers in default.
Late Filing Multipliers
Additional fees of 1x to 12x the normal government fee depending on the length of delay after 30 days.
Operational Impact
Unsatisfied charges block new secured loans, raise red flags in due diligence, and can delay strike-off applications.
COMPARISON
CHG-1 vs CHG-4: Creation vs Satisfaction
| Parameter | CHG-1 | CHG-4 |
|---|---|---|
| Purpose | Creation or modification of charge | Satisfaction (full repayment) of charge |
| When Filed | Within 30 days of charge creation | Within 30 days of full satisfaction |
| Governing Section | Section 77 | Section 82 |
| Key Outcome | Charge ID + Registration Certificate | Form CHG-5 (Certificate of Satisfaction) |
| Professional Certification | Mandatory | Mandatory |
| Who Signs | Company director + professional | Company director + charge holder + professional |
WHY CHOOSE US
Why Corporate Mart?
Expert CHG-4 Filings
Specialists experienced in charge satisfaction, lender coordination and MCA V3 submissions with high first-attempt approval rates.
Complete End-to-End Package
NDC coordination, board resolution, Form CHG-4 drafting, Expert certification, DSC assistance (director + bank) and support until CHG-5.
5–7 Day Turnaround
End-to-end filing typically completed in 5 to 7 working days, with focus on meeting the 30-day statutory deadline.
Transparent Pricing
Clear with dedicated professional support. Government fees charged separately at actuals. Lender coordination included — no hidden charges.
FAQ
Frequently Asked Questions
Form CHG-4 is the MCA e-form used to register the satisfaction (full repayment) of a charge on company assets with the Registrar of Companies under Section 82 of the Companies Act, 2013. It must be filed within 30 days of the satisfaction date and requires professional certification and signatures from both the company and the charge holder.
Form CHG-4 must be filed within 30 days from the date the lender confirms zero outstanding balance (the satisfaction date), not from the date of the last EMI payment. Late filing attracts additional fees of 1x to 12x the normal government fee.
Corporate Mart provides transparent, tailored assistance based on your entity structure and state requirements. Contact our expert team for a detailed proposal. Government fee is ₹200–₹600 based on authorized capital. Total for timely filing is typically ₹3,199–₹5,500. Late filing and condonation add significant extra costs.
Form CHG-5 is the Certificate of Registration of Satisfaction of Charge issued by the ROC after the 14-day notice period expires without objection. It confirms that the charge has been formally removed from MCA records.
Yes. The charge holder’s authorized signatory must digitally sign Form CHG-4 with a Class 3 DSC. Missing or delayed bank DSC is the most common cause of filing delays. Coordinate with the bank in advance.
The company faces a fine of ₹1 lakh–₹10 lakh under Section 86. Officers may face imprisonment up to 6 months or fine of ₹25,000–₹1 lakh. Unsatisfied charges also block new loans and raise red flags in due diligence.
CHG-1 registers the creation or modification of a charge (Section 77). CHG-4 registers the satisfaction (full repayment) of a charge (Section 82). Both have a 30-day deadline and require professional certification.
Form preparation and submission typically take 5 to 7 working days. After submission, the ROC issues a 14-day notice to the charge holder. CHG-5 is issued after the notice period expires without objection.
