SATISFACTION OF CHARGE

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CHARGE SATISFACTION

Charge is a right created by the company as a ‘borrower’, keeping its assets / properties as security against loan taken in the favour of Bank or Financial Institution which has lends money to the company. When company make full repayment of its secured loan to the lender or when the property / asset charged for loan has been released from charge it is known as satisfaction of charges. Every company is mandatorily required to intimate registrar of companies about the satisfaction of charges.

HOW WE WORK

1. Fill the Form and make payment.

2. After payment our experts will connect to you regarding documents and process.

3. Drafting and filing of e-forms by the experts of LEGALDISHA.

4. Delivery of acknowledgement and receipt to you.

CONGRATULATIONS YOU GOT YOUR CHARGE SATISFIED!!!

DOCUMENTS REQUIRED

NOC

No Dues Certificate” from charge holder.

Copy of Board resolution

Copy of Board resolution mentioning satisfaction of charge.

DSC

DSC of charge holder and Director authorised.

TIME LIMIT FOR REGISTRATION OF CHARGE

The charge satisfied by the company should be registered within 30 days of full repayment in form CHG-4.
On application to Registrar such intimation can be allowed within 300 days from the date of payment in full of any charge registered. In case when not intimated within 300 days, application to Central Government to be made for condonation of delay.

PROCESS FOR SATISFACTION AND REGISTRATION OF CHARGE

Board meeting of the company should be conducted to pass resolution for:

Considering decision for satisfaction of charge.
Authorising person for registration of charge.
Receiving “No Dues Certificate” from the lender.

The Company shall file particulars of satisfaction of charges within 30 days from the date of payment in full of any debt against which charge is created and registered with registrar.

On receipt of intimation of satisfaction of charges the registrar shall sent notice to the charge holder to show cause within the period of 14 days that why satisfaction of charge should not be recorded as intimated to the registrar.

The charge satisfied by the company should be registered within 30 days of full repayment in form CHG-4.
On application to Registrar such intimation can be allowed within 300 days from the date of payment in full of any charge registered. In case when not intimated within 300 days, application to Central Government to be made for condonation of delay.

Where a charge is successfully registered by registrar, Certificate of Registration of Satisfaction of charge in form CHG-5 and enter the satisfaction of charge in register of charges.

Frequently Asked Questions

What is the need of creation of charge?

Every company requires funds for its operation of business which can be raised by issuing equity or debt instruments or by advancing loan from Bank or FI. In case company opts for raising funds through loan then it approach to bank/FI for the same. Thus, for the purpose of providing security for loans taken by the company it needs to create charge on its assets or properties.

Which e form to be filed for registration of satisfaction of charge?

For application by company for registration of satisfaction of charge CHG-4 is filed.

What is the time limit of satisfaction of charge?

The charge satisfied by the company should be registered within 30 days of full repayment in form CHG-4.
On application to Registrar such intimation can be allowed within 300 days from the date of payment in full of any charge registered. In case when not intimated within 300 days , application to Central Government to be made for condonation of delay.

Which charges are required to be registered?

Following charges are required to be registered:-

Charge created on the property or assets or any other undertaking of the company.
Charge created within or outside India.
Charge either created on tangible or intangible property.
Charge created on the property or assets either situated in or outside India.

What are the minimum requirements for charge registration?

Minimum requirements for charge registration are:-

There must be two parties, creator of charge and charge holder.
The borrower has the intension of offer its properties as security against loan.
The subject matter of charge that is assets or properties.

Who is eligible to make charge registration application?

charge registration application can be made by:

Creator of charge which means company.
If company fails to make an application ,the Charge holder.