What is a Letter of Good Standing?

What is a Letter of Good Standing?

December 16, 2019

A Letter of good standing is a letter issued by a proper authority in a jurisdiction to verify that a corporation actually exists, has paid all its statutory dues, has met all filing requirements and therefore, is authorized to transact business. This is also called certificate of authorization or certificate of existence.

In a similar light, a Certificate of Good Standing can also be viewed as a document that states that a company has been in continuous, unbroken existence since its incorporation and that no action is currently being taken to strike the company off the companies register.

The Certificate of Good Standing will not be issued if there are overdue fees or filings and cannot be issued except on request by the company through an application.

The Registrar of Companies can issue a Certificate of Good Standing which states according to the documents on the file at the Companies Registry, that the company has been in continuous and unbroken existence since the date of its incorporation; it also confirms that all administrative requirements have been complied with.

A Letter of Good standing also implies that no action is currently being taken by the Registrar of Companies for striking the company off the register and dissolving it as defunct, and also that the Registrar of Companies is aware that:

  • The company is not in liquidation or subject to an administrative order
  • No receiver or manager of the company’s property has been appointed
  • All annual returns and accounts are filed up to date
  • Proceedings to strike off the company from the Register of Companies has not been instituted and premised on this the company is in good standing to enter into businesses with the company who required this verification.

 

618 Bees can help you quickly and easily obtain a Letter of Good Standing. Log on to our website www.618bees.comor email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission.

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

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  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.
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    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 
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