When a firm is established, it must abide by a number of guidelines established by the state government. The submission of an annual report to the Secretary of State’s office is one such requirement. In the event that this is not done, the state may dissolve the corporate entity administratively. This page will discuss administrative dissolution, whether a certificate of existence from North Carolina is required, and what a certificate of good standing from North Carolina is.
A state government may dissolve a corporate company administratively for failing to comply with specific legal conditions. In North Carolina, the Secretary of State’s office will start an administrative dissolution process if a business fails to submit its annual report twice in a row. If the annual report is not submitted within 60 days after receiving a notification from the state to the business’ registered agent, the company will be dissolved.
In order to resume operations if your company has been administratively dissolved, you must do so. Obtaining an NC certificate of existence, also known as a certificate of good standing, is one of the conditions for reinstatement. This certificate, which was granted by the Secretary of State’s office, attests to the fact that your company is registered to conduct business in North Carolina and has made all necessary filings on time.
Even while an NC certificate of existence is not necessary for every business deal, banks, lenders, and other organizations frequently request one before doing business with your company. A certificate of existence from your home state may also be required if you intend to register your firm in another state.
The Secretary of State’s office can certify that a company is legitimate to conduct business in North Carolina and that it is in good standing with the state by issuing a certificate of good standing NC. This indicates that the company has submitted all relevant paperwork and paid all due costs. Banks, lenders, and other organizations frequently need the certificate of good standing before doing business with your company.
In order to prevent administrative dissolution, it is critical for firms to file their annual reports on time. You will need an NC certificate of existence to reestablish your business if it has been dissolved. For some company transactions, a certificate of good standing NC may also be necessary. Businesses may make sure they are in compliance with state laws and keep their good standing with the state by being aware of these criteria.