A solvency certificate states that a person or business has assets enough to cover its liabilities, usually up to a stated amount, and is asked for in tenders, visa applications, court bonds and government contracts. It can come from a bank, which confirms what it can see, or from a Chartered Accountant, who certifies a wider net worth or solvency statement. Which one is accepted is decided by the party asking, so read the notice first.
Facts checked: 9 October 2026. The ICAI UDIN rules below were checked against ICAI's UDIN FAQ. Points on bank practice (validity, fees, who is eligible) come from secondary sources and vary by bank and by tender, so they are stated as practice and not as a rule.
Who asks for a solvency certificate
- Tenders and government contracts, where the buyer wants comfort that the bidder can carry the contract. Many tender notices name the issuer, for example a scheduled commercial bank.
- Court bonds and sureties, where the court or party wants evidence that a surety can pay.
- Visa and immigration applications, where an embassy asks for proof of financial standing.
- Licences and empanelments that set a minimum financial capacity.
Bank certificate versus CA-certified statement
| Point | Bank-issued | CA-certified |
|---|---|---|
| What it rests on | Account history, balances and property papers the bank can see | Books, valuation reports, title papers and borrowings across all lenders |
| Who can ask | Usually the bank's own customers | Any client of the CA |
| Coverage | Narrower, mainly what the bank holds or has verified | Wider, including assets and liabilities held elsewhere |
| Typical use | Tenders that name a bank as issuer | Tenders or lenders that accept a net worth or solvency statement |
Some banks also ask for a CA-certified net worth statement as supporting paper before they issue their own certificate. Some tenders accept only a certificate from a named class of bank. The tender text decides.
Documents usually asked for
Practice varies by bank, but the usual set is an application on the bank's form, identity and address proof, a statement of assets and liabilities, title deeds or valuation reports for immovable property, recent bank and demat statements, and the purpose and amount for which the certificate is needed. Validity and fees differ: some sources mention 12 months as a common validity and fees ranging widely by bank. Neither is fixed by any rule I could find, so use the date and wording in the tender, and ask the bank for its fee.
What a CA must do when issuing one
A CA certificate on net worth or solvency is a certificate for a special purpose. ICAI's Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) with its illustrative formats is the reference members are told to follow. Separately, ICAI's UDIN FAQ says a UDIN is mandatory for certificates where financial information is certified as true and fair or true and correct. Net worth certificates appear in the UDIN portal's list of certificate types, and the UDIN can be generated within 15 days of signing. The FAQ's list of exceptions is not exhaustive, so check the current FAQ. See what UDIN is.
A checklist for the CA
- Read the requesting document: who is the addressee, what amount, as on what date.
- Get a signed statement of assets and liabilities from the client, with supporting papers.
- Verify immovable property to title deeds and a valuation report, not to the client's say-so.
- Include all borrowings and contingent liabilities, including guarantees given.
- State the basis, the date and the limits of your work. Do not certify beyond what you verified.
- Generate the UDIN, quote it in the certificate, and keep working papers.
A draft is available at the solvency certificate template, and the net worth certificate template covers the wider statement.
Illustrative example
Invented figures, for illustration only. A contractor bids for a ₹2 crore work. The tender asks for solvency of at least ₹50 lakh. The CA's statement shows:
| Item | ₹ |
|---|---|
| Land and building (valuer's report) | 1,10,00,000 |
| Bank balances and investments | 22,00,000 |
| Less: loans and other liabilities | (58,00,000) |
| Net worth | 74,00,000 |
The net worth of ₹74 lakh clears the ₹50 lakh requirement, and the certificate says so as on the stated date.
Frequently asked questions
Is a solvency certificate the same as a net worth certificate?
Not exactly. A net worth certificate states assets less liabilities. A solvency certificate adds a statement that the person can meet liabilities up to a stated amount. Many tenders accept either, but follow the wording asked for.
Can a CA issue a solvency certificate in place of a bank?
Only if the party asking accepts it. Where the tender names a bank as issuer, a CA certificate will not do.
How long is a solvency certificate valid?
No single rule was found. Many tenders ask for a certificate dated within a set period before bid submission. Use the tender wording.
Does a CA solvency certificate need a UDIN?
ICAI's UDIN FAQ makes UDIN mandatory for certificates certifying financial information as true and fair or true and correct. Confirm against the current FAQ for your certificate.
For related reading, see what UDIN is.
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