Good standing means a company has met all of its registry's requirements — filed its required reports and paid its fees — and is therefore fully authorized to operate. A certificate of good standing is the registry's formal confirmation of that status.
Lenders, partners and other jurisdictions often ask for a certificate of good standing before doing business with an entity or approving a foreign qualification.
Standing can lapse when a filing or fee is missed and is usually restored once the entity brings itself current.
Related terms
- Entity status — Entity status
- Annual report — Annual report
- Foreign qualification — Foreign qualification