A Good Standing certificate, also known as Certificate of Authorization or Certificate of Existence, is a certificate issued by the state officials which certify that your limited liability company (LLC) or corporation has met its sanctioned requirements and is permitted to do business in that particular state. It also validate that your corporation has filed an annual report, is up-to-date on its state fee payments, and has paid its franchise taxes.
Many companies opt for a Good Standing Certificate for their own records. You can click here https://windsorcorporateservices.com/product/certificate-of-good-standing/to order a Certificate of Good Standing for your business.
The certificate can also be required by:
- Lenders, when you’re looking for financing
- State government, if you’re applying for foreign qualification
- Potential business investors or partners
- Banks, for any transactions
- In order to renew any licenses or permits
Why is Good Standing important?
Maintaining a Certificate of Existence for your company is very essential. Without this, you may not be able to obtain loans, open a bank account, and lease property. It confirms two essential things about your company that no legal action has been initiated to withdraw the corporation from the list of registered companies and has continued to exist since it was incorporated.
Inside the Certificate of Good Standing
The Certificate of Authorization includes following things:
- The name and number of the company.
- The date on which the company is incorporated.
- A statement of continuation and existence of the company.
- A statement that no manager or receiver of the company’s property has been selected.
- Directors’ names and secretaries’ names.
- Issued share capital.
If these details are not sufficient and according to your need, you can add further details if required.
Do you need a Good Standing Certificate?
Many companies don’t have appropriate requirement of a certificate but for their satisfaction that all filings are up to mark, they request for one copy. By exhibiting that the LLC or corporation is matching its regulatory responsibility, a certificate can be used to show that the company is well organized and professional. It gives confidence to their suppliers, customers, and other impressed parties.
The main advantage of this certificate is when you’re looking to establish a business abroad. Here, you need to present a Certificate of Authorization to the official registrar in the country you’re conducting business.
How to get a Good Standing Certificate?
The certificate of authorization can be generated for a company which is already incorporated. While issuing, the existence of the company must be shown in Companies House’s database. They will not issue a Good Standing Certificate under the following situations:
- If your LLC or corporation is delayed with filing its confirmation statements or accounts.
- If the required details of the company, such as its ownership, its constitution, and its control have not been provided.
- If the company is lacking with the suitable number of officers; at least two directors, one natural director for a private corporation, and one secretary for a public corporation.
You can click here https://windsorcorporateservices.com/product/certificate-of-good-standing/ to learn more about a Certificate of Good Standing. You can choose your state from the list and order the same. The certificate is valid for three months from the date of issue.