Certificate of Good Standing

A certificate of good standing is proof that a business has been run correctly. It shows that since a limited company’s incorporation, it has been in continuous and unbroken existence. It can only be issued if no action is currently underway to remove the company from the Companies House register.

A certificate of good standing is a document that, once you register a company, certifies that a limited company has successfully filed annual paperwork with Companies House, complies with all statutory requirements and has no outstanding fees with Companies House from the day of its incorporation. A limited company that maintains a clean track record can request a certificate of good standing from Companies House to prove it is in compliance with all statutory requirements.

Do I Require a Certificate of Good Standing?

The main reason to have a Certificate of Good Standing issued is if your company is planning on conducting business abroad. If you are intending on branching out to other countries, you will have to provide the certificate to the local official registrar to demonstrate your company is properly formed and legitimate. It shows that your company has been run correctly, filled relevant paperwork since the date of inception, and has no outstanding fees associated with the company.

You may also want to obtain a Certificate of Good standing to demonstrate to potential customers and clients that your company is being run correctly. It can sometimes also be required when applying for loans, when selling your business, or when forming a partnership. Usually, there will be other requirements in those situations.

What are the uses of a certificate of good standing?

A certificate of good standing is an important document that might be required in various scenarios. You may require a certificate of good standing to:

  • i.Open a business bank account
  • ii.Set up an overseas branch of your UK limited company
  • Attract potential investors and lenders
  • Secure a bank loan

What information is included on the certificate?

Only basic information is included in the document, so you’ll likely need to provide further documents in order to undertake any official action with your business. The information included on the document is:

  • Directors names
  • Registered office address
  • Issued capital
  • List of subscribers
  • Date of incorporation
  • Verification that company is up to date with filing requirements