A Net Worth Certificate is a vital financial document issued by a qualified Chartered Accountant (CA) that offers a transparent snapshot of an individual’s or entity’s financial standing. It outlines assets, liabilities, and calculates the net worth by subtracting liabilities from assets, providing a clear picture of financial health.

Purposes & Uses

• Demonstrating Financial Health: The net worth certificate is a benchmark for evaluating the financial health of an entity, showing what they own (assets) and what they owe (liabilities).
• Creditor and Investor Due Diligence: It provides creditors and potential investors with a clear picture of the entity's financial position, helping them assess risk and make informed decisions.
• Business Loans and Funding: It's often required to secure business loans or attract investors, demonstrating the entity's ability to repay debt.
• Regulatory Compliance: Certain regulations and requirements may mandate the submission of net worth certificates, such as in cases of regulatory compliance or visa applications.
• Visa Applications: In India, it's commonly used to demonstrate financial stability for visa applications, particularly for those seeking long-term or immigration visas

Steps to Obtain a Net Worth Certificate

• Engage a Chartered Accountant (CA): Only qualified CAs are authorized to issue Net Worth Certificates.
• Supporting Documents: To obtain the certificate, you'll need to provide the CA with supporting documents, such as bank statements, investment statements, property documents, loan agreements, and other relevant financial records.
• Certification and UDIN: The certificate will be signed and sealed by the CA, and a Unique Document Identification Number (UDIN) will be generated for online verification and to ensure its authenticity.

Documents Required for Net Worth Certificate

You need to submit the following documents to obtain a net worth certificate:

Personal Documents

• Proof of Identity (PAN card, Aadhar card, driving license, Voter ID card, or Passport)
• Proof of Address (Passbook, Income Tax Returns (ITR), electricity bill or property tax bill)
• Contact Information (Email ID and phone number) Financial Documents
• Income Statement - Outlining income and expenses incurred during a specified period, highlighting the overall financial performance
• Balance Sheet - Providing a comprehensive and accurate overview of assets and liabilities
• Bank Statement - Tracking all financial transactions, such as deposits and withdrawals over the last 12 months
• Property Documents - Including deeds, mortgage details, tax receipts or any other document related to any owned property, serving as an asset verification
• Investment Records - Highlighting the current worth of all investments such as mutual funds, stocks, bonds or any other investment securities
• Loan Documentation - Including loan agreement, payment records, and other relevant documentation that provides a comprehensive account of liabilities
• Tax Returns - Providing a comprehensive overview of income and tax obligation during a specified timeframe

Financial Documents

• Income Statement - Outlining income and expenses incurred during a specified period, highlighting the overall financial performance
• Balance Sheet - Providing a comprehensive and accurate overview of assets and liabilities
• Bank Statement - Tracking all financial transactions, such as deposits and withdrawals over the last 12 months
• Property Documents - Including deeds, mortgage details, tax receipts or any other document related to any owned property, serving as an asset verification
• Investment Records - Highlighting the current worth of all investments such as mutual funds, stocks, bonds or any other investment securities
• Loan Documentation - Including loan agreement, payment records, and other relevant documentation that provides a comprehensive account of liabilities
• Tax Returns - Providing a comprehensive overview of income and tax obligation during a specified timeframe