Certificate of Good Standing COGS

A Certificate of Good Standing - sometimes called a Certificate of Existence, Certificate of Status, or Certificate of Compliance depending on the jurisdiction - is a short official document issued by the company registrar confirming that an entity legally exists, is up to date on all required state filings (annual reports, statements of information, franchise tax) and has not been administratively dissolved, suspended, or struck off. In Delaware, the Division of Corporations issues a short-form certificate within 24 hours for around 50 US dollars and a long-form certificate listing every filing in the company history for around 175 US dollars. UK Companies House issues a Certificate of Good Standing for 40 pounds (online) or 100 pounds (same-day). Most jurisdictions issue certificates dated within the past 30 to 90 days only. The certificate is the standard piece of paper requested by counter-parties whenever an entity needs to prove ongoing existence: opening a foreign bank account, registering as a foreign LLC or corporation in another US state, signing a major commercial contract, applying for a credit facility, qualifying as a vendor for a procurement program, or submitting documents for an apostille for use abroad.

You will be asked for a Certificate of Good Standing when you register your Delaware C-Corp as a foreign corporation in California or New York (where you actually operate), when you open a US business bank account at a major bank, when you sign a Series A funding agreement (investors commonly require a fresh certificate at closing), when you apostille corporate documents for use in another country, and during M&A due diligence. The certificate is typically valid for 30 to 90 days.