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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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