Corporate good standing
Corporate good standing means a company has kept its filings and fees current with the government registry that governs it, so it is not in default and remains a validly existing corporation. Buyers, lenders and landlords often ask for a certificate of status confirming this before completing a transaction.
Staying incorporated is not automatic. Corporations must file annual returns, pay required fees and keep basic information like their registered office and director list up to date. Corporate good standing is simply the status of a company that has kept up with those requirements.
Why it gets checked
- Buyers confirm it before closing a purchase, since a corporation not in good standing can signal deeper administrative neglect
- Lenders often require proof of good standing before advancing financing
- Landlords and major suppliers may ask for it before assigning a lease or contract
How it is confirmed
A certificate of status or certificate of compliance, issued by the relevant corporate registry, confirms whether a company is in good standing at a given moment. Falling out of good standing, for example by missing annual filings, can usually be fixed by filing what is overdue and paying any late fees, but it takes time and can delay a closing if discovered late.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Treadstone LawLegal commentaryChecking Corporate Status and Good Standing Before Buying an Ontario Business
- 02Treadstone LawLegal commentaryExecution and Judgment Searches Before Buying a Business in Ontario
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