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A Certificate of Good Standing (CGS) is used to verify that a company is correctly incorporated in the UK, and has met all of its filing obligations under the Companies Acts. The CGS cannot be issued if actions are pending to remove the company from Companies House register.
The Certificate contains the following information:
- The company name and registration number.
- The date the company was incorporated.
- Verification that the company has met all its statutory filing obligations.
- A statement that the company has been in continuous existence since its incorporation.
- A statement that no action is being taken by Companies House to remove the company from the Register.
- A statement that, as far as the Registrar of Companies is aware, the company is not in liquidation or subject to and that there has been no appointment of a receiver or manager of the company or its assets.
The CGS can also include the following information:
- Names of the Directors.
- Company secretary name.
- Registered Office address.
- Company objects (if relevant-must companies do not provide an objects clause).
CGSs are often required when a UK company is operating outside the UK. UK companies are so inexpensive and easy for non-UK residents to set up, that many of them do operate outside the UK, and the demand for CGSs is high. CGS will often be requested by.
- Overseas lenders.
- Overseas banks.
- Overseas partners and investors.
- Overseas government and municipal agencies.
CGS can be issued for companies limited by shares (LTD), companies limited by guarantee (LBG) and limited liability partnerships (LLP).
Certificate of Incumbency
Non-UK resident clients sometimes request a Certificate of Incumbency. However, no such document exists in the UK. It is, of course, possible to create such a document and have it notarised. Still, it will not be authorised by a government agency and will not have the same legal standing as a CGS.