What is CA Certificate for Study Abroad- A Complete Guide

We often encounter the word "CA Certificate" while completing the financial document requirements for Visa Applications or the Disbursement process of an Education Loan. So, "What is a CA Certificate?"; why is it required for Study Abroad? Let's Explore together. 

The CA Report is commonly known as the net worth Report. Its full form is a Chartered Accountant Report. An authorized Chartered Accountant prepares it to summarise an individual's or family's total net worth. It's a detailed report of the financial strength of the student's sponsor (usually parents or guardians).

Why is a CA Certificate Required for Studying Abroad?

The CA Certificate or Networth Report is required to prove your total net worth. It is certified by an authorized Chartered Accountant in India. The CA is responsible for verifying the details of each asset before mentioning it in the Report. So, having a certified CA Report will help understand the admission team at Universities, the credit team at Financial Institutions and the Visa officer in the Immigration department about your capability to bear the expected cost of education. A CA report summarizes all available funds in banks, investments, and fixed assets such as property in a single report to make it easy for concerned authorities to understand instead of going through each document individually. 

Depending on the University and Visa Authorities, they may accept only Liquid Assets or both Liquid and Non-Liquid Assets. For Instance, Universities and Financial Institutions such as Banks and NBFCs consider only Liquid Funds, while Visa authorities consider both Liquid and Non-Liquid assets. Keeping Liquid and Non-Liquid assets in the CA Report for higher acceptability is better unless specifically mentioned. 

What Information is Included in a CA Certificate?

Two types of funds can be considered for Networth Report - Liquid & Non-Liquid Assets. 

• Liquid Assets
• Bank Balance (require Bank Statement)
• Fixed Deposits
• Gold Ornaments (with Invoice)
• Cash (restricted up to some amount)
• Provident Fund Statement
• LIC Surrender Certificates
• Mutual-Fund or DEMAT Statement
• Gold Bonds / RBI Bonds
• GIC Account / Blocked Account
• Other Investments

Non-Liquid Assets

• Property (require Valuation Report)
• Vehicles (require Insurance Copy)

The CA Certificate must include information about the student, such as Name, Passport number, Residence address, and details of their family members, including Name and PAN Number. It must also have the certification date and total net worth of the family in INR and foreign currency (USD, CAD, AUD, EUR, GBP) with bifurcation. The details of the chartered accountant, such as name, address, UDIN, MRN, and FRN, should be at the bottom with a signature and stamp. 

UDIN (Unique Document Identification Number) is a unique number generated by Chartered Accountants in India for every certificate they issue, which helps prevent forgery and misuse. Including information about UDIN can reassure universities and visa officers about the legitimacy of the financial documents provided. For authenticity purposes, it is mandatory to have UDIN mentioned on your CA Report. 

How to Get a CA Certificate?

By now, you should understand why a CA Certificate is essential and required for a Visa Application. The next question is how to obtain a CA Certificate. The first and foremost step is to approach a Licensed Chartered Accountant. They will summarise the relevant documents, such as Bank Statements, Fixed Deposits, Valuation Reports, etc., and prepare your Networth report. Once you verify the details in the Report, the Chartered Accountant will authorize the Report, print it on their Company's Letterhead and Stamp-Sign. 

Documents Required for CA Certificate

To streamline the application process for a CA Certificate, you have to prepare the following List of documents. 

1. Student's Aadhar Card & Passport
2. Parent's Aadhar Card & PAN Card
3. Sponsor's Aadhar Card & PAN Card (If any)
4. Bank Statements (Latest)
5. Fixed Deposit Receipts
6. Gold Bonds & RBI Bonds
7. Provident Fund Account Statement
8. Insurance Copy of Vehicles
9. Demat Account Statement
10. Post Office RD Accounts & KVPs
11. LIC Surrender Certificates
12. Property Valuation Reports (prepared by authorized Architect)
13. Gold Valuation Certificate (prepared by authorized Jeweller)

The above-mentioned investment-related documents are NOT mandatory and vary on a case-to-case basis. The Chartered Accountant may have existing tie-ups with an authorized Architect and Jeweller to ease the application process. 

Tips for Getting an Accurate CA Certificate

Follow the following tips to get an authentic CA Certificate that is equally correct and acceptable to the concerned authorities.

• Ensure that attached documents, such as Bank statements, Fixed Deposit Receipts, Property Valuation Reports, Fixed Asset Invoices, etc., are recent. 
• Both Liquid and non-liquid assets should be included to exhibit your family's accurate net worth. 
• The listed items in the CA Certificate should have verifiable proof attached for authenticity. Refrain from any misrepresentation which leads to Visa Refusal. 

Is a CA Certificate Mandatory?

No, a CA Certificate is not mandatory for a Visa Application, but attaching it to prove your net worth is suggested. The list of fixed assets in the CA certificate depicts your bond with the country and your capability to pay upcoming expenses such as university fees, living expenses, and other unexpected expenses. 

Common Mistakes to Avoid in CA Reports

Based on past experiences, here are the most common mistakes encountered in CA Reports

1. Omitting UDIN: It is mandatory to include the UDIN (Unique Document Identification Number) on each CA Report to enhance its authenticity.

2. Balance Mismatch: The reported balances should align with the available investment proofs. Withdrawing funds after obtaining the CA Report can lead to discrepancies and render the report unauthentic.

3. Not Considering All Assets: To accurately reflect total net worth, it is crucial to include all available assets in the CA Report. By being mindful of these common pitfalls, you can ensure that your CA Reports are accurate and credible.

Sample Format of a CA Certificate

The CA Report generally consists of three pages. The first page summarises information. The second and third pages mention the bifurcation of the assets and the closing paragraph. It includes the CA Name, FRN, MRN, Firm Name, Date, Place, and UDIN with Signature and Stamp. All three pages are to be printed on the Official Letterhead of CA. Here is the Sample first page of the CA Report for your reference.  

The above-mentioned CA Report is for Educational Purposes only. Please consult with authorized Chartered Accountant for your peronalized CA Report.