Keeping your Business in Good Standing — Part 1
Part of your responsibilities as a business owner is keeping your company in good standing.
If your business has recently moved, changed its name or its Board of directors, you'll need to inform the jurisdiction in which your company is registered or incorporated.
What type of requirements will you likely have to fulfill to keep your company in good standing? You'll need to:
- Complete annual filing requirements and fees: some jurisdictions ask companies to complete an annual report with specific information about their company and/or to pay an annual administrative fee.
- Update your registered office and mailing address if you move
- Keep director names up-to-date
- Report any other major changes to the company such as name, change in the provinces and/or territories in which it operates, the business activity it carries out, or whether or not the company is still active.
Some of the reasons you'll want to ensure your business remains in good standing are:
- When you initially registered or incorporated, you likely signed a document or checked a box agreeing to inform the jurisdiction in which you registered or incorporated of any changes to the company.
- Potential customers or business partners might use the online database where your company is listed at the federal level or with the provincial registrar to find accurate and up-to-date information about your business.
- Financial institutions may request that your company information be up-to-date with the jurisdiction in which you are registered or incorporated before you can open a business account, apply for a loan, etc.
So what if your intentions are good and you really do want to keep your company in good standing but you don't know where to go to make the required updates? In next week's blog, we'll go through the steps for updating your company information with the jurisdiction in which you are registered or incorporated. Stay tuned.
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