Nill Statutory Certificate

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Nill Statutory Certificate

A Nil Statutory Certificate (NSC) is an official confirmation issued by a Chartered Accountant (CA), Company Secretary (CS), or a competent authority stating that an individual, business, or company has no statutory dues or liabilities pending with government departments.

  • Covers compliance under Income Tax, GST, PF, ESI, Professional Tax, Labour Laws, etc.
  • Commonly required in loan applications, mergers, government contracts, subsidy claims, and tenders.

In short: It certifies that the entity is statutorily clean (no pending defaults or dues).

  • General Nil Statutory Certificate Confirms that the company/business has no pending statutory dues.
  • GST Nil Certificate Specific to GST compliance — no pending returns or dues.
  • PF/ESI Nil Certificate Confirms there are no pending PF or ESI dues of employees.
  • Labour/Factory Act Nil Certificate Confirms compliance under Labour Welfare Acts, Professional Tax, or Factory Act.
  • Loan/Bank-Required Nil Certificate A CA/CS certificate submitted to banks along with loan renewal or CMA data, confirming no government dues are outstanding

1. Basic KYC

  • PAN, Aadhaar, GST, Udyam/MSME registration.

2. Tax & Compliance Records

  • Income Tax Returns (latest 2-3 years).
  • GST Returns (GSTR-1, GSTR-3B).
  • PF/ESI returns (if applicable).
  • Professional Tax challans.

3. Business/Company Records

  • Audited Financial Statements.
  • Board Resolution (for company certification).
  • Past statutory notices/clearance certificates (if applicable).

4. Declaration from Entity

  • Self-declaration confirming compliance, which the CA/CS verifies before issuing NSC.

  • Individuals / Entrepreneurs - Eligible for startup schemes (PMEGP, MUDRA, Stand-Up India).
  • MSMEs / Startups / Companies - Eligible for industry-specific, capital investment, or interest subsidies.
  • Farmers / Agro-based Units - Eligible for NABARD, food processing, irrigation, and cold storage subsidies.
  • Exporters / Manufacturers - Eligible for DGFT, SEZ, and export incentive subsidies.

Basic eligibility factors include:

  • Valid registration (GST, Udyam/MSME, PAN, TAN).
  • Project falling under government-notified industries.
  • Compliance with statutory norms (PF, ESI, labour laws, tax).
  • Good financial track record or project viability (via DPR & CMA data).

  • Reduces Cost of Business Direct grants & capital subsidies reduce initial investment burden.
  • Lower Interest Outgo Interest subsidies make loans cheaper and increase repayment capacity.
  • Boosts Business Growth Encourages expansion, modernization, and competitiveness.
  • Improves Loan Approval Chances Banks prefer projects backed by subsidy schemes (less risk).
  • Government Benefits & Priority Helps in getting priority in tenders, incentives, tax rebates.
  • Encourages Innovation & Employment Startups, MSMEs, and agro-based units get special benefits, helping generate jobs.
 
     
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