Purpose and Issuance of Certificate of Good Standing
A certificate of good standing proves a business is legally registered and able to operate in a state. Issued by the state, it verifies you are a legally registered entity, compliant on all filings, fees, and business requirements. LLCs and corporations must register with the state to obtain it. It shows the official existence of a registered entity and that it complies with state laws. You may need it to do business in another state, open a bank account, or enter contracts since it shows your business is legitimate. Typically, you renew it yearly or after significant business changes.
Requirement for UK Businesses
For UK businesses, the certificate of good standing is requested from Companies House. It shows the business is compliant and can be requested by anyone.
Significance for Individuals
A certificate of good standing for a person is also known as a certificate of existence or letter of good standing. It proves that the individual is legally registered with the state and may be required for various purposes.