WHAT IS A LETTER OF GOOD STANDING ISSUED BY THE CORPORATE AFFAIRS COMMISSION (CAC)?
A letter of good standing from the corporate affairs commission (CAC) is issued to show that a registered entity is validly registered and has met all statutory requirements and is in good standing with the commission.
It shows that the entity is not in any form of encumbrances.
REQUIREMENTS FOR A LETTER OF GOOD STANDING
The registered entity must show that:
- Annual returns are paid up to date
- All statutory payments have been made
IMPORTANCE OF A LETTER OF GOOD STANDING
- It depicts the status of a registered entity and can be used to show credibility to investors, and apply for loans to banks.
- Some government agencies, suppliers, investors, and organizations require letters of good standing before doing business with a company.
- For companies bidding for contracts or public procurement letter of good standing is a requisite document.
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