As the saying goes, trade agreements always benefit both states and for effective and smooth transaction of business, you will need a Certificate of Fact.
What is a Certificate of Fact?
Any business unit or entity, to operate and transact within a state, needs a Certificate. It is also known as a ‘Certificate of Existence’ or a ‘Certificate of Good Standing’. A Certificate of Fact is a proof of the confirmation of a unit that is integrated and has the authorization of entering into business deals within a state. The State where the transaction takes place issues this certificate.
The necessity of a Certificate of Fact
Just like a child needs a birth certificate to ascertain his/her birth, a company needs a certificate of fact which contains some very important facts and information related to the company. One might need the certificate during daily transactions. This certificate is a proof that the concerned unit or business entity has fulfilled the requirements of the state. Also, the name of the company should be there in the Register of Companies at the Registrar of Companies.
A Certificate of Fact includes:
· The name of the company that has applied for the certificate.
· PAN or the Permanent Account Number of the business unit.
· The CIN or the Corporate Identity Number of the concerned unit.
· The date of the issuance of the certificate to the company.
· TAN or the Tax Deduction and Collection Account Number of the company.
When is a Certificate of Fact required?
You require a certificate of Fact for:
- Opening a new bank account.
- If the company wants to enter transactions with other states.
- In a case of financial deal.
How to get a Certificate of Fact
A few weeks time is enough usually to get a Certificate of Fact.
- Get to know if your business unit needs to register with the state. If the business unit is a corporation or a limited liability company, it is necessary to enrol with the state and get a certificate.
- If the company is working under limited liability limited partnership or limited partnership, it depends on the laws and rules of the state you want to transact. The certificate might be or might not be important in this case.
- If it is the only owner and proprietor, then the certificate is not necessary.
- In any case, if there is any confusion as to the registration for the certificate, one can always contact the state’s business filing agency.
The company concerned should have a good and clean image in front of the state. It means there should be no pending taxes and no pending details or information that needs to be filed with the state.
- The secretary of state office or one of its divisions will provide you with the certificate of fact. Many states now offer certificates application online also. The charges of application vary with time and you can always take the help of an agency or another company to file an application for the certificate for you.
What are the Clauses related to the Certificate of Fact?
A Certificate of Fact relates to clauses which are meant to ensure better and clear dealings between parties. Some of them are as follows:
- Both the entities agree to certain term and conditions, be it written or oral. The agreement concerns their dealings to be regarded as confidential. Each unit shall respect and keep the information confidential and will not reveal any such information to any third party. Any disclosure of information from any side of the party might terminate the deal. Confidential information might include a proposal, a presentation, financial information, reports or secrets of the business. It may also include inventions, scope of improvement, software, formulae, list of clients, marketing strategies, sales figures, future plans, etc.
- Both the parties agree to provide coverage and take each other as mutual partners in case of any loss, damage, attorney’s fees, lawsuits, demands, etc. These issues might arise due to mistakes or operations of the other party.
Tips for writing an effective certificate or letter
There are some samples of the Certificate of Fact that will help in understanding the process of procuring it effectively.
Template 1 type
- The first sample relates to the application for the certificate in Montana. Here, to apply for the certificate, we need to go online and search for the specific entity’s information page which has the link for the certificate of fact form. The process is quite simple:
- You have to first find the business entity homepage and fill in the blank space with your desired field name there.
- Your answer will bring forth all the related results. You will have to choose a particular unit’s name that suits your requirement.
- You will find a page now which will provide you with the Certificate of Fact along with other important related information in return of a small payment.
- In case if you want to search for more information before the payment, you might always go for it.
- Once the payment is done, you will get the certificate.
Template 2 type
- Another reference can be given for the Texas state
- A certificate of fact is an official document which serves as an evidence of the business entity to transact deals in Texas. It contains the company’s registration details, the official name of the company along with the date of formation of the entity. You can always go online and choose the option of certificate verification on the website to verify the authenticity of the certificate on the specified business name. The latter is issued by the Corporations Section of the Office of the Texas Secretary of State.
- Due to the sensitivity of the transactions in the business sector, the State offers forms for downloading purposes, tax filings, certificate verification happening online, clearance services and a variety of modes of payment. Payment modes include cash, money order, check and credit card payments. The cash and checks are returned if the forms cannot be filed due to any reason.
- You will find several options to look for a particular business unit in the next few steps. First you need to log into your account with the Secretary of State. You need to log in with your username and password in the respective blank spaces that you will get in the page.
USER ID- ________________
After entering the details, you will click on the submit bar.
- A second page will come where you will be providing them with your full name, email address and contact details. You will also be getting options in payment method.
PAYMENT METHOD ______________
CONTACT INFORMATION :
CONTACT NAME ________________
- Now you will be choosing the mode of payment. Here you will be asked to fill in the following details:
- The type of card.
- The number of the card.
- Date of expire.
- Security code.
- The name of the business.
- Your full address.
- Contact number.
- After providing all the information, you will be logged in and will get a session code. To go to the next step, you have to choose the Business Organization option given on the top.
- Now you can enter your homepage where you will get a lot of options related to inquiries. You will get a Name Availability Search option where you will have to click. Then comes the next page where you will be entering the entity name concerned.
- You will be provided with one or any number of names that will match with yours. If it matches with any other currently working, then it is very much possible that your filing will be rejected. If there are no similar names cropping up, then you might be good to go. You can easily find details of any company from the list which will be presented before you.
A registered address of the entity is important in Texas where a registered agent will be present during business hours. He or she will deal with the notices, process or any demand by law for the business entity. The registered address will be the office address of the registered agent and it might be the working place for the business unit as well.
There is this expedited service provided where the filing is notified by the first day of business following the day of receipt. The filing entity is informed by email or by phone or in writing about the disposition of the documents. The State provides expedited service of faster processing of the business organization documents for a specified fee. The filing documents are returned by mail and if the party needs an alternate way out like shipping, the State will try to fulfil the request. You need to provide with details along with all the other documents that might be required to fulfil your need. Companies like Federal Express, UPS and Lone Star regularly does this kind of work for the Secretary of State. A no profit organization can also be formed by the certificate of fact addressed to the Secretary of State.
Template 3 type
We can check for the requirements needed for the certificate of fact as our next sample. A Certificate of Fact gives legal information regarding a company where the specific entity has some pending obligations or any other negative impression due to which it is no longer in working position. A Certificate of Fact is needed when an official document is required that has the officers details, trading deals, authorized address of the office, and share details.
There is something called a reduced certificate of fact which are made for dissolved companies. Here the information will be provided related to the company’s existence which is currently not operating. In UK, a Certificate of Fact becomes necessary under few circumstances. One of those reasons is lawsuit passed by a foreign company against the company working in UK. Under such circumstances, it becomes necessary to provide some kind of official document to the foreign company proving the existence of UK company as genuine.
In the current working companies in UK, the certificate of fact provides the following information:
- Certificate type.
- Present and last name of the company.
- The date of the amalgamation of the company.
- Director information.
- If the name has been changed of the company, then the date it has been changed.
- Secretary details.
- Registered office address.
If the company has been dissolved, then following details will be provided in the certificate:
- Certificate type.
- Current and previous name of the company
- The previous names of the company.
- The date the company changed its name.
- The date of suspension of the company.
Template 4 type
We will also see the way a Certificate of Fact is issued in Washington. They provide with a page that needs to be filled for applying for the certificate. The form is addressed to the Washington State Department of Licensing.
Here, in the first line, there are four bars that need to be filled. Those are:
- Registration number.
The next line asks for VIN or Vehicle Identification Number. Under that line you will get a big space to write about your certification. At the end, you need to sign and print out a copy of the form. At the bottom of the form, there are a few more bars of information. These include the name of the State, the name of the County, date of attestation and who attested it, the signature, stamp, title and the expiration date.