Solvency Certificate by Chartered Accountant — and the Bank or SDM Certificate File When the Recipient Insists on One
A solvency certificate states that a person or business is financially sound enough to meet a stated obligation — a tender bid, a contract, a court surety, a visa sponsorship or a credit line. In India it can come from a bank, from the revenue department (SDM / Tehsildar) or from a practising Chartered Accountant, and the recipient decides which it will accept. TAXAJ issues the CA solvency certificate with UDIN in 1–2 working days — and where the recipient insists on a bank or SDM certificate, we prepare the entire net-worth file that gets it issued.
- CA solvency certificate, signed and UDIN-verified
- Net-worth working and file for bank / SDM certificates
- Individuals, HUFs, firms, LLPs and companies
- Tender, court-surety, visa and bank formats
- Draft shared for approval before signing
- Delivered in 1–2 working days, pan-India
Bank, SDM or Chartered Accountant — Which Solvency Certificate Do You Need?
Most pages on this subject skip the one question that decides everything: who is the certificate for, and what will they accept? The three routes are not interchangeable, and getting the wrong one costs you the bid or the hearing date.
| Issued by | What it certifies | Typically demanded for | How it is obtained |
|---|---|---|---|
| Scheduled bank (banker's solvency certificate) | That, to the best of the bank's knowledge, the customer is good for a stated amount — usually "solvent up to ₹X" | Government works tenders (CPWD, state PWDs, railways, CPSEs) — commonly for a percentage of the estimated cost; contractor registration; some large private contracts | Application to your own bank with a CA net-worth certificate, ITRs, statements and property valuation; bank charges its own fee; the branch's discretionary limit decides if it goes up the chain. A week or more. |
| Revenue department (SDM / Tehsildar / District Collector) | Solvency of an individual, usually on immovable property, for a stated amount | Surety in court (bail and civil sureties), excise and liquor-licence bonds, some government contracts, customs and departmental bonds | Application on the state e-district portal with property documents, government-approved valuation, ITRs and affidavit; field verification by the Patwari / Tehsil; timelines vary by state. |
| Chartered Accountant (CA solvency certificate) | That on the basis of verified assets and liabilities the person or entity is solvent, with net worth and liquidity shown | Private and PSU tenders that accept "solvency certificate from a bank or a Chartered Accountant"; visa and immigration files; franchisors; contract counterparties; investors; and as the core document for the bank and SDM routes above | TAXAJ verifies documents, prepares the net-worth statement, drafts in the recipient's format, signs with UDIN. 1–2 working days. |
Read the tender clause before ordering anything.If it says "solvency certificate from a scheduled / nationalised bank", a CA certificate will not be accepted on its own — but the bank will not issue theirs without a CA net-worth certificate and a reconciled asset file, which is exactly what we prepare. If it says "bank or Chartered Accountant", the CA certificate is the faster and cheaper route. Send us the clause and we will tell you which one you need.
What a Solvency Certificate Actually Certifies
Solvency is the ability to meet obligations as they fall due. A solvency certificate therefore looks at two things a net worth certificate alone does not: the size of net assets against the obligation in question, and the liquidity of those assets — how much is cash, deposits and marketable securities versus property and business interests. A person with ₹5 crore of land and ₹2 lakh in the bank has a high net worth and may still fail a solvency test for a ₹50 lakh performance obligation.
A CA solvency certificate accordingly states the verified assets and liabilities as on a date, the resulting net worth, the liquid portion, any encumbrances and guarantees, and a conclusion that the person or entity is solvent to the extent of the stated amount for the stated purpose. It is issued under ICAI's Guidance Note on Reports or Certificates for Special Purposes, signed by a Chartered Accountant in full-time practice, and carries a UDIN that the recipient verifies on udin.icai.org.
Amount-specific
The certificate is issued for a stated amount or obligation — "solvent to the extent of ₹1.5 crore" — not as an open-ended statement of wealth.
Liquidity shown separately
Cash, deposits, listed securities and mutual funds are shown apart from property and business interests, because that is what a tender authority or court actually tests.
Encumbrances disclosed
Mortgaged property, pledged shares and guarantees given are disclosed and netted where the recipient's format requires. An undisclosed charge found later voids the certificate and the bid.
Where a Solvency Certificate Is Required
Government and PSU tenders
Works, supply and service tenders routinely list a solvency certificate among pre-qualification documents, often for a percentage of the estimated cost. Many CPWD and state PWD formats specify a banker's certificate; many PSU and private tenders accept a CA certificate.
Contractor registration and enlistment
Class-wise contractor registration with PWDs, municipal corporations and CPSEs asks for solvency for the class applied — a bank certificate in most states, supported by a CA net-worth statement.
Court sureties and bonds
Standing surety for bail or in a civil matter, excise and liquor-licence bonds, customs bonds and departmental guarantees — usually the revenue-department certificate, with a CA net-worth or solvency certificate accepted by some courts and authorities.
Visa and immigration
Business, investor and some student-visa files ask for evidence of financial soundness of the applicant or sponsor; a CA solvency or net-worth certificate in the embassy's currency is the standard document.
Contracts, franchises and leases
Counterparties to large supply contracts, franchisors and commercial landlords ask for a solvency certificate before signing a multi-year commitment with a private company or a firm.
Credit facilities and guarantees
Personal guarantors to company borrowings and applicants for bank-guarantee limits are asked for a solvency statement, alongside the net worth certificate, when the facility is assessed or renewed.
What TAXAJ Does for Each Route
CA solvency certificate (accepted directly)
- Verify every asset and liability against documents; value property, gold and investments on the basis the recipient accepts
- Prepare the net-worth statement with liquid and non-liquid assets shown separately and encumbrances disclosed
- Draft the certificate for the stated amount and purpose in the recipient's format — tender annexure, embassy format or our standard
- Sign by a practising CA, generate the UDIN, deliver the signed PDF (original by courier on request) — 1–2 working days
Bank or SDM solvency certificate (file preparation)
- Read the tender or court requirement and confirm which authority's certificate is needed and for what amount
- Prepare the CA net-worth certificate that the bank or SDM will rely on, plus the asset-and-liability schedule and reconciled ITRs
- Coordinate the property valuation from a bank-panel valuer or government-approved valuer, and the gold valuation where relevant
- Fill the bank's application or the e-district form, assemble the document set in the order the officer expects, and follow up to issue
- Bank and department charges are paid at actuals — banks typically charge a modest fee; timelines are theirs, usually about a week for a bank
Documents Required for a Solvency Certificate
Identity, income and purpose
- PAN and Aadhaar (passport for a visa file); for an entity, PAN, incorporation documents and the latest audited financial statements
- Income-tax returns for the last 2–3 years with computation
- The tender clause, court order or embassy checklist that asks for the certificate, and the amount to be certified
- Bank application form or e-district reference, where the bank or SDM route applies
Assets and liabilities
- Bank statements (savings and current, typically 6 months) and fixed-deposit receipts
- Demat and mutual-fund statements, PPF / EPF statements, insurance policies with surrender value
- Property documents — sale deed, latest tax receipt, encumbrance certificate where available — and a valuation report from a Chartered Engineer, bank-panel or government-approved valuer where the recipient requires market value
- Gold valuation certificate (jeweller or bank valuer) for weight and value
- Loan sanction letters and outstanding statements; credit-card statements; details of guarantees given and any pending demands or decrees
Solvency Certificate Format — What a Valid CA Certificate Contains
On the certificate
- CA firm letterhead with Firm Registration Number, address and contact
- Title "Solvency Certificate"; addressee (tender authority, court, embassy, bank or "To Whomsoever It May Concern")
- Name, PAN and address of the person, or name, CIN / LLPIN and registered office of the entity
- Date as on which solvency is certified and the amount or obligation it relates to
- Schedule of assets with basis of valuation, liquid assets shown separately; schedule of liabilities, encumbrances and guarantees
- Net worth in figures and words; the certifying statement that the person or entity is solvent to the extent of the stated amount
- Purpose line restricting use; place, date, signature, membership number, firm seal and UDIN
Sample draft (illustrative)
SOLVENCY CERTIFICATE
To Whomsoever It May Concern
On the basis of the books of account, bank statements, investment statements, property documents and other records produced before us and verified by us, we certify that [Name / Entity] (PAN [•]) of [address] has, as on [date], total assets of ₹ [•] (of which liquid assets ₹ [•]) and total liabilities of ₹ [•], resulting in a net worth of ₹ [•] ([in words]), and is solvent to the extent of ₹ [•].
Immovable property is stated at [valuer's report dated • / circle rate]; listed securities at closing prices as on the certificate date. Encumbrances and guarantees, if any, are disclosed in the annexed schedule.
This certificate is issued at the request of [name] for the purpose of [tender reference / surety in case no. • / visa application to •] and is not to be used for any other purpose.
For [Firm Name], Chartered Accountants · FRN [•]
[Name], Partner · M. No. [•] · UDIN: [•]
Place: [•] · Date: [•]
How It Works
Tell us the purpose, the amount and the recipient
Send the tender clause, court requirement or embassy checklist. We confirm whether a CA certificate is accepted or a bank / SDM certificate is needed, and the amount to be certified.
Submit documents as per the checklist
Through the myTAXAJ portal or WhatsApp. We tell you at this stage whether a valuer's report is needed and arrange it if so.
Verification and net-worth statement
Every asset and liability traced to its document; liquid assets separated; encumbrances and guarantees disclosed. This statement is the certificate's backbone — and the document the bank or SDM will rely on if that route applies.
Draft for your approval
You confirm the names, date, amount, addressee and purpose line before anything is signed.
Signed with UDIN — or filed with the bank / SDM
CA route: signed by a practising CA, UDIN generated, PDF delivered in 1–2 working days. Bank / SDM route: the file is submitted with the application and followed up to issue.
Why Applicants Come to TAXAJ for Solvency Certificates
We tell you which route first
A CA certificate sent to a tender that specified a banker's certificate is a wasted fee and a lost bid. We read the clause before we draft.
Practising CAs, UDIN every time
Signed by a Chartered Accountant in full-time practice with a UDIN the recipient verifies on udin.icai.org.
One fee, either route
₹10,000 covers the CA certificate, or the complete net-worth file for a bank or SDM certificate. Third-party charges — valuer, bank, department — at actuals.
The full certificate family
Net worth, turnover and solvency certificates from one verification, so a tender file is consistent across all three.
Lawyer in-house for court sureties
Where the certificate is for a surety, our legal team checks what the specific court or authority accepts before the CA signs.
Pan-India, fully online
Offices in Delhi, Bengaluru, Darbhanga and Goa; documents by portal or WhatsApp; PDF by email, original by courier where the recipient insists.
Solvency Certificate — Frequently Asked Questions
Who issues a solvency certificate in India?
Three kinds of issuer: a scheduled bank (to its own customer, for a stated amount), the revenue department — SDM, Tehsildar or District Collector — (mainly for sureties and government bonds, on property), and a practising Chartered Accountant (on verified assets and liabilities, with UDIN). Which one you need depends entirely on what the tender, court, embassy or counterparty has asked for.
Is a CA solvency certificate accepted for tenders?
Often, but read the clause. Many PSU and private tenders say "solvency certificate from a scheduled bank or a Chartered Accountant" and accept the CA certificate directly. CPWD and many state PWD formats specify a banker's solvency certificate for a percentage of the estimated cost; there, the CA certificate is the supporting document the bank asks for, not a substitute. TAXAJ checks the clause before drafting.
What is the difference between a solvency certificate and a net worth certificate?
A net worth certificate states assets minus liabilities as on a date. A solvency certificate goes further: it relates that net worth to a stated amount or obligation, shows how much of it is liquid, discloses encumbrances, and concludes that the person or entity is solvent to that extent. Most bank and SDM solvency certificates are issued on the strength of a CA net worth certificate.
How much does a solvency certificate cost?
TAXAJ charges ₹10,000, which covers either the CA solvency certificate with its net-worth statement, or — where a bank or SDM certificate is required — the complete file and application. Bank charges, department fees and any valuer's fee are paid at actuals; banks typically charge a modest fee for their certificate.
How long does it take?
A CA solvency certificate is delivered in 1–2 working days from complete documents. A banker's solvency certificate usually takes about a week from a complete application, longer if the amount exceeds the branch's discretionary limit and goes to a higher office. Revenue-department certificates depend on the state's e-district process and field verification.
Can a solvency certificate be issued for a court surety?
Courts generally want the surety's solvency established by the revenue authority (SDM / Tehsildar) on immovable property, though some courts and authorities accept a CA solvency or net-worth certificate. Our in-house legal team confirms what the specific court accepts before we prepare the file.
How long is a solvency certificate valid?
Bank solvency certificates are generally treated as valid for one year, and tenders usually specify a maximum age — often within the last 6 to 12 months. A CA certificate certifies a position as on a date and is refreshed with updated statements when the recipient needs a current date.
Do I need a property valuation report?
Where immovable property forms a substantial part of the net worth and the recipient tests market value — most tenders, banks and SDM offices — yes: a report from a Chartered Engineer, bank-panel valuer or government-approved valuer. For visa files and some private counterparties, circle-rate value with the sale deed is usually enough. We tell you before you pay for a valuer.
Can a company or LLP get a solvency certificate?
Yes. For an entity the certificate is built from the latest audited financial statements, with net worth per Section 2(57) of the Companies Act where a statutory threshold applies, current-period management accounts for liquidity, and the charge register from the ROC record for encumbrances.
Is a solvency certificate required for a visa?
Some business, investor and sponsor files ask for evidence of financial soundness; embassies usually accept a CA solvency or net-worth certificate in their currency, with ITRs and bank statements. Check the specific checklist — many visa categories ask for a net worth certificate rather than a solvency certificate, and we issue whichever is listed.
What if my liabilities are close to my assets?
The certificate states what the records show; a CA cannot omit a loan or a guarantee. If the verified position does not support the amount the tender or court requires, we tell you at the draft stage so you can consider a co-applicant, a bank guarantee or a different bid, rather than submit a certificate that fails scrutiny.
Is UDIN mandatory on a solvency certificate?
Yes. Since 1 February 2019, ICAI requires a Unique Document Identification Number on every certificate signed by a practising Chartered Accountant. The recipient verifies it on udin.icai.org; a certificate without one, or from a CA not in full-time practice, is rejected on verification.
Get the Right Solvency Certificate — CA, Bank or SDM — Without a Rejected File
Send us the clause or checklist and your documents. We confirm the route, prepare the net-worth statement, and either sign the CA certificate with UDIN in 1–2 working days or get your bank or SDM certificate issued.
Call +91 88028 12345 · Mon–Sat, business hours · Offices in Delhi, Bengaluru, Darbhanga and Goa