| What is an Ontario Certificate of Good Standing |
| Written by Holly Crosgrey |
| Sunday, 31 January 2010 10:02 |
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A Certificate of Status is sometimes called a Certificate of Compliance or a Certificate of Good Standing and in Ontario a Certificate of Status is issued by the Ontario Ministry of Government Services. All companies can obtain a Certificate of Status in the jurisdiction in which they have been incorporated.
A Certificate of Status is sometimes called a Certificate of Compliance or a Certificate of Good Standing and in Ontario a Certificate of Status is issued by the Ontario Ministry of Government Services. All companies can obtain a Certificate of Status in the jurisdiction in which they have been incorporated. There will be times when a company must prove to an institution of some sort that it is in good standing pursuant to the requirements under the Ontario statutes. A Certificate of Status provides this confirmation. If you obtain an Ontario Certificate of Status it will show the following: (a) the current name of the corporation; (b) the number assigned to the corporation by the government called the Ontario Corporation Number; and (b) whether or not the corporation is in good standing. All Ontario companies have to file a federal tax return within six months of the financial year end of the company in each year. If returns are not filed the tax department will request the Ontario Companies Branch to dissolve the company. If a Certificate of Status is ordered for a dissolved company it will not be clear. Your Ontario corporation will be dissolved by the Ministry of Government Services if the annual returns are not filed. If you wish to order a Certificate of Status then you must ensure the annual returns are up-to-date or you will not receive a Certificate indicating the corporation is in good standing. When you order an Ontario Certificate of Status it will be issued whether it is clear or not and you cannot get your money back if it is not clear. The Certificate will show the company is not in good standing. Before you will be able to obtain a clear Certificate of Status you will need to update your filings. Any document that is being certified by the Ontario government has a high cost to it. Therefore you will want to ensure that you know in advance whether your company is in good standing so you do not have to order the certificate more than once. If you have outstanding tax returns you can still get a favourable Certificate of Status as long as you have not been dissolved for this reason but you will not receive a favourable certificate if Ontario annual returns are outstanding A Certificate of Status is not an Ontario corporate search. If you are trying to determine information about an Ontario company you should have an Ontario Corporate Profile search done rather than ordering a Certificate of Status. If your corporation is selling or buying property, is entering into a major contract, wants to register a car against the corporation, a Certificate of Status might be requested by the law firm, by the government or the bank involved. Any corporation might be asked for confirmation that it has made its proper filings and be requested to provide a Certificate of Status. About the Author: Resources for Canadian Business Owners provides information about Ontario Certificates of Status and other legal products including Ontario Company Searches. |