Certificate of Good Standing

Definition:

In the United States, a certificate issued by the Secretary of State of the company’s state of incorporation. It certifies that a company has complied with its corporate obligations such as filing requirements and the payment of corporate franchise tax.

A Certificate of Good Standing is frequently required prior to the Closing of transactions and banks often require a Certificate of Good Standing when providing finance to a company.

Certificates of Good Standing are not available in certain jurisdictions outside the United States.

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