What is a good standing certificate?

If your company is private, your business must have at least one director who is defined as a ‘natural person’. A natural person is the person named as director and is a human being. This distinction may sound odd, but limited companies exist as their own legal entities. A company solicitor can explain the legal implications of a business existing as a separate legal entity.

The law requires that a private business give details about the actual people that are running the enterprise. And if your company is public, you must have at least two directors, one of which must be a natural person with the other being the secretary of the company. A company solicitor can provide legal advice on this area of company law and ensure your company meets the requirements.

Many businesses use good standing certificates to prove with documentary evidence that their business is being operated correctly and does not have any litigation, issues with late filing of accounts, or any other problems that investors or customers might find worrying about the company and the people that run the enterprise.

Note that most certificates are only valid for three months. This is simply because businesses can change on a daily basis. A good standing certificate issued by Companies House must be a true and accurate account of the company concerned.

Many business people who are based overseas also use good standing certificates to indicate that their UK operations are complying with all the necessary legal and regulatory requirements. It is possible to obtain a certificate on the same day as your request, but most applications to Companies House for a certificate will usually take between five and ten working days.

If you are forming a new company, you will normally have to wait between two and five days for your incorporation to be completed before you could then apply for a good standing certificate. A certificate would be issued even though your new company has only existed for a short period of time. For any further legal advice on good standing certificates, or the establishment of a new company, you can contact a company solicitor.

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