How To Obtain A Federal Certificate Of Compliance
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In the Canadian federal jurisdiction they are referred to as Certificates of Compliance. These Certificates confirm that the federal company has made all of its proper filings and has not been dissolved.
A federal Certificate of Compliance can be requested by anyone or any company. Government offices frequently request them as do clients that offer services outside of Canada. Banks also require them upon occasion. These certificates are almost always asked for by solicitors when legal transactions such as sales, etc. are taking place.
Basically a Certificate of Compliance is required when you need to provide someone or some other company with the assurance that your federal company is in good standing. Since anyone can request a Certificate of Compliance with respect to any company that is registered it is important that you keep your filings up-to-date. Being in good standing means that the company is still active and has not been dissolved for non-filing of federal and/or provincial tax returns or non-filing of federal annual returns. The Certificate of Compliance for a federal company will provide the accurate current name of the federal company, the federal corporate number and its status.
One of the legal requirements for federal companies is the filing of federal and/or provincial tax returns and if a company goes three years without filing it can be dissolved. The federal government does send out warning letters but the address for the company on file must be current. Reviving a company is very expensive so it is important to ensure you keep your filings fairly current so this does not happen. As well if you do not file your federal corporate annual return for two years you will also be dissolved for this. Once you are dissolved it is impossible to obtain a Certificate of Compliance.
If you have been requested to provide a Certificate of Compliance for your federal company it is a good idea to first check to see if all federal annual returns have been filed. Otherwise, you will be wasting your money. The government does not refund the money if the Certificate of Compliance cannot be issued. It is possible to know in advance of ordering a certificate whether the company is in good standing. Ordering a federal corporate search can tell you if your company is in good standing and what address is on file for the company.
Article Source: Articlelogy.com
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