If you’re running a company in the UK, you might have heard of a ‘Certificate of Good Standing’ and wondered what it’s for.
This official document, issued by Companies House, confirms that your business is up to date with its filing obligations (such as filing your Confirmation Statement) and remains in active status. It’s essentially proof that your company is operating by the book and hasn’t been struck off the register.
A Certificate of Good Standing can be particularly useful when dealing with international clients, setting up overseas bank accounts, or demonstrating credibility to potential investors.
Whatever the reason, knowing how to get this certificate is essential for maintaining your company’s reputation and unlocking growth opportunities.
In this article, we’ll walk you through everything you need to know about obtaining a Companies House Certificate of Good Standing, from what it includes to how you can apply. Let’s get started!
What is a Certificate of Good Standing?
A Certificate of Good Standing is an official document issued by Companies House that confirms your company is active and compliant with its legal obligations. It shows that your business has:
- Filed all necessary documents (such as confirmation statements and company accounts).
- Paid any required fees.
- Avoided any actions that could lead to it being struck off the Companies House register.
This certificate is often required when expanding your business internationally, opening overseas bank accounts, or proving your company’s credibility to partners, clients, or investors. Essentially, it’s a seal of approval that your company is being run responsibly and legally.
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Who can apply for a Certificate of Good Standing?
Only active companies registered with Companies House are eligible to apply for a Certificate of Good Standing. To qualify, your company must:
- Have all required filings up to date (e.g., confirmation statements and annual accounts).
- Be free from any overdue fees or penalties.
If your company has compliance issues, such as missing documents, you’ll need to resolve these before applying. Sole traders, partnerships, and other non-limited business structures are not eligible for this certificate.
How to obtain one:
Applying for a Companies House Certificate of Good Standing is straightforward if your company meets the requirements. Here’s how to do it:
1. Check your compliance
Ensure all company filings, including confirmation statements and annual accounts, are up to date. Address any overdue fees or penalties.
2. Log in to Companies House services
Access your company’s account using your authentication code via the Companies House online portal.
3. Request the certificate
You’ll find the area to request a certificate under the 'More' tab. Once there, provide the necessary details to proceed.
4. Pay the fee
The cost of obtaining a Certificate of Good Standing depends on the service you choose.
- Standard Service: £15, with documents sent within 10 working days.
- Express Service: £50, with same-day dispatch for orders placed before 11 am.
The certificate will include your company name, registration number, and confirmation that it complies with legal filing requirements. For additional details, such as directors’ names, you may need to make a specific request.
Acting early to maintain compliance makes the application process far smoother, and you’ll likely get quicker receipt of the certificate.
Paper vs electronic version of the Certificate of Good Standing
The Certificate of Good Standing is available in two formats - electronic (usually a PDF) and paper. It’s worth noting that there are a few pros and cons to both options.
The main differences and advantages largely come down to intended use, convenience, and processing time.
Paper version advantages:
- Formal presentation: A physical certificate with an official seal can carry more weight in formal or legal contexts, such as when dealing with international clients, banks, or government bodies that require hard copies.
- Original documentation: Some organisations or authorities may only accept original paper documents for verification.
- Traditional use: Paper certificates are often preferred for situations where physical submission or archiving is required.
Considerations:
- Longer processing time: Paper certificates typically take longer to produce and deliver than electronic versions, often requiring additional time for processing and postage.
- Additional fees: There might be extra charges for postage or courier services, especially if express delivery is needed.
Electronic version advantages:
- Speed: Electronic certificates are usually issued faster, making them ideal for urgent requirements.
- Cost-effective: Generally cheaper as no printing or postage fees are involved.
- Easily shareable: Can be emailed to clients, partners, or authorities instantly, reducing delays.
Considerations:
- Acceptance limitations: Some organisations may not accept electronic versions or may request a paper version for official purposes.
- No physical copy: You may need to print it yourself if a hard copy is required.
Which to choose?
- Choose electronic if speed, convenience, and cost savings are priorities, or if you're dealing with organisations that accept digital formats.
- Choose paper for formal applications, international dealings, or when specific entities require a physical, certified document.
In some cases, having both versions might be beneficial for flexibility and assurance.
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Alternatives: Certificates for companies not in good standing
If your company doesn’t qualify for a Certificate of Good Standing, there are steps you can take to address the situation.
1. Resolve compliance issues
- File any overdue documents, such as confirmation statements or annual accounts.
- Settle any unpaid fees or penalties owed to Companies House.
2. Consider alternative documentation
While waiting to regain good standing, you might provide other documents to show your company’s status, such as:
- A recent certificate of incorporation.
- A stamped copy of your most recent confirmation statement (formerly annual accounts).
These alternatives can temporarily support your dealings until a Certificate of Good Standing becomes available. Once your compliance issues are resolved, you can re-apply for a Certificate of Good Standing.
Stand out with good standing
A Companies House Certificate of Good Standing is a valuable document for demonstrating your company’s compliance and credibility. Whether you need it for international dealings, opening a bank account, or reassuring investors, obtaining this certificate is a straightforward process if your company is in good standing.
To apply, ensure your filings are up to date and decide whether a paper or electronic version suits your needs.
If your company isn’t currently eligible, resolving compliance issues promptly will help you get back on track. Staying on top of your legal obligations can make the application process smoother, and also reinforce trust in your business.
Need help managing your company’s accounts or keeping your filings up to date?
At Crunch, we offer expert accounting support for Limited companies, ensuring you stay compliant while focusing on growing your business. Get started today and let us take the stress out of your accounting.