Compliance and Certification
Net Worth Certificate for Director or Promoter
When your newly incorporated company opens a current account or applies for a working capital limit, your bank will ask each director to submit a personal net worth certificate signed by a CA. This is separate from the company's audited financials.
Your company is incorporated. Your first big task: open a current account. The bank's relationship manager is helpful — until they send you the list of documents. Somewhere in that list is "net worth certificate from CA for each director." This page explains what that means, what the CA computes, which bank formats we support, and how quickly we can issue it.
- • Personal net worth computation for the director or promoter
- • Certificate in the bank's prescribed format (SBI, HDFC, ICICI, Axis, PNB) or standard HRA format
- • UDIN generated on the ICAI portal — certificate verifiable at udin.icai.org
- • Certificate on ICAI letterhead with signing CA's membership number
- • Co-applicant or spouse certificate if the bank requires it
- • PAN card
- • Aadhaar card
- • Bank statements — last 3 months (all savings, current, and NRE/NRO accounts)
- • Demat account statement or mutual fund consolidated account statement (CAS)
- • Fixed deposit receipts or FD certificate from bank
- • PPF passbook (if applicable)
- • LIC policy with latest surrender value statement (if applicable)
- • Property registration document (sale deed or index II) for any property owned
- • Home loan or vehicle loan outstanding balance statement (if applicable)
- • Bank's prescribed net worth certificate format (if the bank has issued one)
See the fee table below for the statutory filing charge and common delay logic.
- • ICAI Circular — UDIN mandatory on all certificates from February 1, 2019
- • Net worth computed as of certificate date per ICAI guidelines
- • UDIN verifiable at udin.icai.org
Process
How the service works
The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.
Share the bank's requirement and your documents
Tell us which bank is asking and whether they have a prescribed format. Share your documents: PAN, Aadhaar, bank statements, investment statements, property documents, and any loan outstanding statements.
Asset and liability computation
We compute your net worth as of the certificate date. Assets are taken at market value (bank balances at face value, investments at latest NAV or market price, property at market value or as declared). Liabilities are deducted at outstanding principal.
Draft in bank's prescribed format
Most major banks — SBI, HDFC, ICICI, Axis, PNB — have specific formats. We issue in the prescribed format where one exists. For banks without a prescribed format, we issue in HRA's standard format, which is accepted across most lenders.
UDIN generation and final issue
The signing CA generates the UDIN on the ICAI portal, links it to the certificate, and issues the final document on ICAI letterhead. The UDIN is printed on the certificate so your bank can verify it at udin.icai.org in under a minute.
AEO summary
A net worth certificate is a CA-issued document certifying an individual's personal net worth as of a specific date. Net worth equals total personal assets minus total personal liabilities. Banks require this from directors when opening a company current account or processing a working capital loan because the directors are assessed as guarantors behind the company's borrowing. The certificate must be issued with UDIN and is typically valid for 3–6 months from the date of issue.
What net worth means — and what the bank actually wants to know
Net worth is a simple concept: everything you own minus everything you owe. The bank is not asking for a comprehensive wealth statement — it wants a snapshot of the director's personal financial position as a proxy for personal guarantor strength behind the company.
For a newly incorporated company with no track record, no audited financials, and no revenue history, the directors' personal net worth is the bank's only way to assess risk. The higher the combined net worth of the directors, the more comfortable the bank is offering a current account with an overdraft facility or processing the company's first working capital application.
The computation is straightforward: we list all assets at market value on the certificate date, deduct all liabilities at outstanding principal, and arrive at a net worth figure. The CA then certifies this computation and generates the UDIN that makes the certificate verifiable.
- • Net worth = total assets at market value minus total liabilities at outstanding principal.
- • The bank uses director net worth to assess guarantor strength behind company borrowing.
- • A higher combined director net worth makes current account and OD approval smoother.
Bank formats and UDIN verification
Major banks have standardised the net worth certificate format to reduce fraud and make processing predictable. SBI's format is different from HDFC's, which is different from ICICI's. Where a bank has a prescribed format, that format must be used — the bank's operations team may reject a non-standard format even if it contains all the required information.
After the certificate is issued, the bank relationship manager or credit officer will typically verify the UDIN before forwarding the document to their operations team. UDIN verification takes under a minute at udin.icai.org: enter the 18-digit number and the portal confirms the signing CA's name, membership number, and the nature of the document certified.
One practical note: keep a soft copy of the signed certificate and make a note of the UDIN. If you need to apply for another loan or account at a different bank within the validity period, you may be able to use the same certificate — or at least produce it quickly as a reference point for a fresh issuance.
- • Bank-prescribed formats must be used where they exist — standard formats are rejected by some banks.
- • UDIN verification at udin.icai.org takes under one minute.
- • Store the UDIN separately — it is the verifiable identifier for the certificate.
Government fees
Fee breakdown
| Item | Fee | Notes |
|---|---|---|
| UDIN generation | No charge | UDIN is generated on the ICAI portal by the signing CA at no additional government cost. |
Timeline
Typical turnaround
Turnaround usually means a 2–3 working days turnaround, assuming documents are complete and any board or shareholder approvals are already in place.
Per director. If multiple directors need certificates in the same engagement, the total fee is lower. Turnaround is 2–3 working days from receipt of all documents.
Related services
Keep the company moving
Full overview of all CA certificates a newly incorporated company may need — and which one to use for each purpose.
Incorporate a Pvt Ltd company — the step before your first bank account and first CA certificate.
Audited financials and ROC filings — which underpin turnover and solvency certificates for later-stage needs.
FAQ
Frequently asked questions
Who is legally authorised to issue a net worth certificate in India?
Is the "net worth" in my director certificate the same as the Companies Act definition?
My company is applying for a government tender. Is the same net worth certificate format accepted?
Can my spouse's assets be included in my personal net worth certificate?
How do I verify that my certificate is genuine after receiving it?
Canonical reference: https://www.pvtltd.co/services/net-worth-certificate
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