SOLVENCY CERTIFICATE
Solvency certificate is a document that provides information about the financial stability of an individual/entity.
Solvency Certificate is either issued by banks or Chartered Accountants & emphasize on the complete financial stability of an individual/entity. It reflects the positive Net Worth of that individual/entity.
Why do we need Solvency Certificate ?
A solvency certificate is required by the government and commercial offices to be sure about the financial position of individuals/entities. A solvency certificate is required for the following reasons:
- Applying for tenders
- Obtaining contracts,
- Visa interviews,
- Legal/court matters etc.
A solvency certificate supports the financial strength of the individual/entity.
Issuance of Solvancy Certificate -
A solvency certificate is generally issued by the revenue department and banks on request. Banks usually issue this certificate to their customers based on the account transactions and property documents available to them.
A report from a chartered accountant attesting the financial status of the individual/entity also helps in obtaining the solvency certificate from banks.