—Guide
Net Worth Certificate by a CA: When You Need One and How It's Prepared
What a CA's net worth certificate is, when individuals and businesses need one, how assets and liabilities are valued, the documents required, and how recipients verify it.
A net worth certificate is a chartered accountant's statement of a person's or entity's assets minus liabilities on a given date. It's one of the most commonly requested CA certificates. This guide explains how it works.
When You Need One
- Visa applications, especially student and visitor visas.
- Tenders and contractor registrations with minimum net worth criteria.
- Bank loans, for promoters and guarantors.
- Dealerships, franchises and distributorships.
- Some regulatory registrations with net worth requirements.
What It Includes
For individuals: bank balances, deposits, investments, property, vehicles, jewellery and other assets, less loans and liabilities. For businesses: share capital and reserves from the balance sheet, adjusted as required.
Valuation Basis
The certificate must state how each asset is valued — cost, market value, or another basis. Property is often included at market value, supported by a registered valuer's report. Investments use statement values on the certificate date.
Documents Needed
- Bank and investment statements as at the certificate date.
- Property documents and valuation reports.
- Loan statements.
- For businesses, the latest financial statements.
- The recipient's prescribed format, if any.
What the CA Checks
The CA verifies balances with statements, ownership with documents, and values with valuations. Assets that can't be verified are excluded or disclosed. The CA follows ICAI's guidance on certificates for special purposes.
Verification
Every certificate carries a UDIN, which the recipient can verify on ICAI's portal.
Getting Help
Think Filing issues net worth certificates for individuals and businesses, quickly and in the required format.