The Preparation of Sertificates of GOOD STANDING, INCUMBENCY

Preparation of Good Standing, Incumbency, Tax Residence Certificate. If you have a “European company” or business in offshore countries, then, most likely, you have come across a variety of certification documents, in particular, Good Standing, Incumbency and Tax Residence Certificate.

If you can’t figure out what they are for, or just plan to use them, the following information will be relevant. Such certification documents are not essential for the company.

FEATURES OF CERTIFICATES

Such certificates are ordered additionally when the need arises. And sooner or later such a need will surely appear.

PREPARATION FOR GOOD STANDING CERTIFICATE

In other words, it is a good condition document. The certificate confirms that the company is active and, most importantly, it has no debts related to the payment of state fees. Usually it indicates the name of the institution, data on its registration number, date of issue.

Issued by the body that registered the company. Such a document may be required if the business partner wants to make sure of the legality of the company.

In practice, this rarely happens. Much more often, a certification document is required when opening an account in a foreign bank, provided that the company has existed for more than six months.

It is needed when updating information on a working account at a time that is set by the bank itself. Nuances may arise here. If the offshore company has not paid government payments on time, the document will not be issued by the registry.

The bank requirements will not be met, and the account will simply be blocked, which will automatically level all transactions.

PREPARATION OF INCUMBENCY CERTIFICATE

With such a document, you can easily confirm information about the status of the company at the moment. It also displays extended information about the structure of the company.

Information about the name of the company and its registration number is considered standard for a certification document. Be sure to register information about the leaders and persons who have shares.

However, sometimes the certificate also displays other information required by the beneficiary and in accordance with the jurisdiction.

Incumbency is issued by the registration agency or company secretary. The document is needed when opening an account with a foreign banking institution. The need for it appears during verification.

TAX RESIDENCE CERTIFICATE

In the presence of such a certificate, it is possible to confirm the status of a resident taxpayer in the country where the company was registered. It shows that the company has its own tax number. Residents must submit appropriate reports once a year.

It turns out that such a document is relevant only for offshore companies, therefore, only they can get it. And the whole point is that offshore companies are tax-free jurisdictions.

Tax Residence Certificate can be issued by the tax authority of the state that registered the company. We need a document so that you can enjoy the benefits of agreements and at the same time avoid double taxation. A foreign bank has the right to request a document if an account is opened with it.

WHERE TO PREPARE CERTIFICATES

Eternity Law International provides almost all types of legal services. In particular, support during the registration of offshore companies, European companies. Also, our specialists are ready to assist in opening a variety of accounts in foreign banking institutions.

We help to obtain all of the above certification documents, as well as other certificates for existing offshore companies.

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