Solvency Certificate Meaning, Documents Required & Format
This article provided information regarding the Solvency Certificate format, application form, issues solvency, and application procedure of solvency certificate.
Solvency is a certificate in which we get information on the financial stability of an entity/individual. It is given by the government and commercial officers, ensures that the financial credibility of individuals/entities is required. It is a legal document to support the financial strength of every individual/entity.
Net Worth Certificate (Issued by Chartered Accountant)
Additional Investment certificate
Gold Validation certificate
Application Fee
The fee charged for receiving the certificate is different from bank to bank. Most of the banks charge nearly Rs 2000 to issue.
Who Issues Solvency?
Banks primarily issues solvency certificate, revenue department or any other financial institutions on request. The most commonly accepted certificates are from banks.
It will have a validity period that is one year, and we need to renew it every year to make sure that the certificate is accepted in all cases.
Application Procedure of Solvency Certificate
The applicants who have and maintain a savings/current bank account in banks can apply and submit the certificate. To prepare the certificate, banks will rely on various documents and information.
So before the application procedure of Solvency certificate, the applicants must also submit the below documents:
Property Valuation
Gold Valuation
Bank Statement
If any, fixed deposit receipt
If any, Provident & Mutual Fund statements/shares
Net worth certificate from the Chartered Accountant
Now submit the application form with all the above documents photocopies attached that are stated by bank officials. Carry the original documents along while submitting the form with photocopies for verification purpose.
After submitting the application form and required documents, the bank will process the application form on weekdays and Solvency issues. The processing time to get the certificate is 15 days after applying for it.
Solvency Certificate Format
Below is the Solvency Certificate format
To Be Issued on a Bank’s Letterhead
Date:
Private and Confidential
To the concerned Authority
Address of the authority
A/c to (Organisation name)
Reference no.
SOLVENCY CERTIFICATE
We, (Name of the bank), hereby certify that (Name of business) having their registered office at (Registered office address) is solvent to the extent of INR 25,00,000/- (INR 25 Lakh only) as disclosed to us on (date) with the financial records shared with us.
It should also be noted that this certificate is issued at the request of (Name of individual requesting certificate) without attaching any responsibility or risk on our part in any respect whatsoever, either as a guarantor or otherwise.
