Capital Infusion Certificate

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Capital Infusion Certificate

  • A Capital Infusion Certificate is a document that certifies that the promoters/owners have introduced fresh capital into the business.
  • It is usually issued by a Chartered Accountant (CA) or certified by the company’s board.
  • Banks and financial institutions ask for it when businesses apply for loans, especially working capital, term loans, or restructuring.
  • It proves the financial commitment of promoters and strengthens the company’s equity base.

In simple words: It is proof that owners have invested their own money into the business.

  • Promoter’s Contribution Certificate: Issued when promoters bring in equity capital.
  • Debt to Equity Infusion Certificate: When loan/borrowed funds are converted into equity.
  • Subsidy / Grant Infusion Certificate: When government subsidies or grants are infused as capital.
  • CA-Certified Infusion Certificate: Certified by a Chartered Accountant after verifying bank statements & entries.

1. Basic Business Documents

  • PAN, GST, Udyam/MSME Certificate.
  • Incorporation Certificate (for companies).

2. .Capital Infusion Proof

  • Bank statements showing capital introduced.
  • Copy of cheque/RTGS/NEFT transfer.

3. Financial Records

  • Updated Balance Sheet showing infused capital.
  • Capital account/ledger copy.

4. Certification Documents

  • CA Certificate verifying infusion.
  • Board Resolution (for companies) confirming infusion.

5. Promoter's KYC

  • PAN, Aadhaar, Address proof.

  • Startups / New Businesses - When applying for first loan or government subsidy.
  • MSMEs & SMEs - For working capital/term loan sanction, enhancement, or restructuring.
  • Corporates - For equity infusion before raising debt/bonds.
  • Individuals / Proprietorships - If promoter introduces fresh capital into the business account.

  • 1. Loan Sanction Support Banks trust businesses more when promoters show commitment via infusion.
  • 2. Improves Net Worth Strengthens equity base and reduces debt-equity ratio.
  • 3. Eligibility for Subsidy & Schemes Required for government-backed loan schemes (like CGTMSE, SIDBI).
  • 4. Better Credibility Builds confidence with investors, lenders, and partners.
  • 5. Ensures Transparency Certified proof avoids disputes and confirms promoter’s stake.
  • 6. Supports Business Expansion Infused capital can be used for machinery, working capital, or new projects.
 
     
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