What is Networth?

The networth of an individual or company is the total assets of the individual or company minus the total liabilities.

That is why net worth is a good indicator of a person’s total financial value at any given point in time.

A positive net worth that is growing year on year shows good financial health whereas a negative net worth or year-on-year declining net worth indicates poor financial conditions. Net Worth is used as an indicator of financial health in various processes.

 

What is the need of a Net Worth Certificate / Networth Certificate?

Net Worth Certificate is essential for the below reasons:

1. Visa Application
   Net Worth Certificate by CA is a mandatory requirement during a visa application process. The requirement of the certification is to determine the financial net worth of the visa applicant.
2. Bank Loans
   Networth Certificate authorized by CA is sometimes a requirement during a bank loan application. It helps in ascertaining the financial net worth of the loan applicant.
3. Franchisee Application
   The Networth certificate by a CA is a requirement during franchisee agreements as well. The franchisors are interested to evaluate the net worth of the franchisee