Every time you apply for a visa, you are asked to provide proof of financial stability like a net worth certificate. Do you know why? Well a net worth certificate contains all the data related to the financial assets and liabilities of an individual. This helps the countries to verify whether they have enough means to sustain themselves during their stay.
Let us understand this in more detail.
What is a Net Worth Certificate?
Net worth certificate highlights an individual’s complete net worth by listing all his assets and liabilities. It helps immigration authorities to confirm that the applicant is financially strong and will not be a financial burden on their country.
A general net worth certificate contains the following:
- Assets: This refers to liquid funds, bank deposits, property, investment in equities and stocks, fixed deposits, jewellery, and other valuables.
- Liabilities: This includes loans, mortgages, or any other outstanding debts.
- Net worth: This is the amount computed by subtracting total liabilities from total assets. This indicates the applicant’s net worth.
Why is a Net Worth Certificate Required for a Visa?
Some visa applications, particularly for the USA, Canada, and Australia, require a Net Worth Certificate as proof of economic stability. This is particularly necessary for:
- Student Visa: Students must show they or their sponsors have sufficient means to cover fees, living expenses, and other living costs.
- Investor Visa: Some visas require evidence that the applicant can commit an investible amount, in the host country.
- Tourist Visa: Some countries require proof that the visitor has enough funds for travel and stay.
- Business Visa: Business travellers could be asked to show the proof of funds for operation, investment or for any transactions.
The net worth certificate ensures that the applicant immigration authorities that he or she has sufficient financial resources such that there is less potential for overstaying, having employment problems, or becoming reliant on government welfare.
Why Obtain a Net Worth Certificate?
- Improves Legitimacy: Providing a net worth certificate makes the visa application more legitimate to present hence will have a more confident validation on having enough financial capacity.
- Easy Visa Application Procedures: In case of persons with even more complex financial backgrounds, the certificate consolidates all relevant information into one place to ensure smooth and less hassle processes by immigration officers.
- Eligibility Verification: Most visa types have unique finance-based eligibility criteria; the Net Worth Certificate verifies if one meets them or not.
- Facilitates Huge International Transactions in Money/Investments: This document is also helpful in case huge international transactions or investments that you make in a foreign country.
Procedure for Net Worth Certificate
Obtaining a Net Worth Certificate involves some specific steps and is usually pursued by a chartered accountant (CA) or a registered financial counsellor.
1) Engage a Chartered Accountant usually issues a Net Worth Certificate; only in some cases may it be issued by someone akin to a CA.
2) Identify Documents Required
- Bank Statements: The current balance, savings, and deposits.
- Property Documents: Proof of ownership of real estate and its estimated value.
- Investment Statements: Stocks, bonds, mutual funds, and more.
- Asset Valuation: Reports of any valuable assets such as jewelry, art, or vehicles.
- Proof of Liabilities: Mortgage or loan statement showing outstanding liabilities.
3) Process of Valuation of Assets: The CA will assess each and every asset and liability. Sometimes, for property or individual assets appraisal, further documentation by professional appraisers may also be sought.
4) Drafting of Certificate: After due scrutiny, the CA would prepare the Net Worth Certificate showing all assets, liabilities, and the resulting net worth number.
5) Authentication: It could be wise to have the document notarised because some visa authorities demand that certificate be notarised to add authenticity to it.
6) Append to Visa Application: You can append it directly with your visa application once issued to complete the financial eligibility.
Suggestions to keep in mind to Obtain your Net Worth Certificate
- Accurate Document: Ensure correctness in all documents pertaining to your assets and liabilities, both existing and updated.
- Choose a Known CA: The immigration authorities rely on the credibility of the CA, so make sure they are well-known and certified.
- Check Visa Requirements: The Net Worth Certificate may have different requirements for different visas and countries. Always check with the embassy or consult a visa advisor.
- Keep Original and Copies: Some embassies might retain the original certificate, so it is advisable to keep a copy for your records.
