A Certificate of Good Standing is used to prove that a company is incorporated and authorised to conduct business in a specific jurisdiction. It is also known as a ‘Certificate of Authorisation’ or ‘Certificate of Existence’. In this article, we explain the purpose and content of the certificate and how you can easily order one for your company.
A Certificate of Good Standing for a company confirms two important things about a company:
- The company has continued to exist since it’s incorporation
- No action is currently being taken to remove the company from the register of companies.
In the UK, a Certificate of Good Standing is issued by Companies House and sent by post to the company’s registered office address. In the UK, a Certificate of Good Standing is issued by Companies House and sent by post to the company’s registered office address. While it is possible to get an electronic copy, this version does not bear the signature of a Companies House official and may not be suitable for all purposes.
Purchase certificate of good standingA company is deemed to be in good standing if it has filed all the expected paperwork with, and has paid all fees which are due to, Companies House. If you need confirmation of this (which might be...
What a Certificate of Good Standing includes:
- The company name and number;
- The date the company was incorporated;
- If required, details of the last company name change or a record of all name changes;
- A statement that the company has been in continuous and unbroken existence since being incorporated;
- A statement that no action is being taken by Companies House to strike off the company and dissolve it as defunct;
- A statement that, to the Registrar’s knowledge, the company is not in liquidation, subject to an administration order, or under the management of a receiver or manager.
Here’s an example of what a Certificate of Good Standing looks like:
Do I need a Certificate of Good Standing?
Most companies may not need a Certificate of Good Standing, but some request one to ensure all their filings are up to date.
A certificate can demonstrate that the company is meeting its regulatory obligations, showcasing professionalism and organisation, and giving confidence to customers, suppliers, and other interested parties.
the main benefit of a Certificate of Good Standing is where you’re looking to conduct business abroad
However, the main benefit of a Certificate of Good Standing is where you’re looking to conduct business abroad. If you’re setting up a foreign branch in another country, you generally need to provide a Certificate of Good Standing to the official registrar in that country. This assures them that the UK company is compliant with its regulatory obligations.
Even if your business is solely based in the UK, a Certificate of Good Standing may be requested by:
- Lenders, as a condition of a loan offer.
- Banks, when opening new accounts.
- Potential business partners or investors.
Simply confirming that a company has been in existence since its incorporation and that no action is currently being taken to remove the company from the register is probably insufficient detail for some of the above organisations. If necessary, Companies House can include additional information on the Certificate of Good Standing, such as:
- Registered office address
- The company’s objects
- Directors’ names, and details such as date of birth and/or nationality
- Secretaries’ names
However, you cannot request that the Certificate of Good Standing include details of shareholders, shareholdings or statement of capital. If such details are needed, consider filing a fully up to date confirmation statement (Form CS01) and then request that Companies House certify this.
How do I get a Certificate of Good Standing?
A Certificate of Good Standing can only be ordered for a company that has already been incorporated. Once the company is listed in the Companies House database, a certificate can be requested, even if the company is newly established.
Purchase certificate of good standingA company is deemed to be in good standing if it has filed all the expected paperwork with, and has paid all fees which are due to, Companies House. If you need confirmation of this (which might be...
Companies House will not, however, issue a Certificate of Good Standing in the following circumstances:
- If the company is behind with filing its accounts or confirmation statements.
- Required information about the company’s constitution, ownership, or control is missing.
- The company does not have the required number of officers—at least one natural director for a private company, or at least two directors (one being a natural person) and a secretary for a public company.
Once issued, a Certificate of Good Standing remains valid for three months. After this period, most authorities will require a more up-to-date certificate.
How can Inform Direct help?
Inform Direct offers a range of features designed to help you manage your company effortlessly and never miss a filing. Our platform includes automatic email reminders and an intuitive traffic light system to ensure you never miss a statutory filing deadline. There is now full automation for the confirmation statement, which simplifies the filing process and completely relieves the pressure of managing deadlines.
With Inform Direct, you can easily update details of your officers, shareholders, and other company information. Our system automatically updates your statutory registers where relevant, ensuring your records are always current. Our software also supports multi-user management, allowing multiple team members to access and manage company details securely. Advanced customisation features let you tailor the system to suit your specific needs, and our easy-to-use interface ensures that even complex processes are straightforward. By eliminating the need to enter details multiple times, Inform Direct not only saves you time but also keeps all your company information in sync and accurate.
A previous version of this article was originally published on November 19, 2019.