What does 'good standing' mean for an Ontario corporation and why does it matter?

"Good standing" means that your Ontario corporation has met its registration and filing obligations with the Ontario Business Registry and has not been flagged for non-compliance or dissolution. A corporation in good standing has filed all required annual returns, maintained a valid registered office address in Ontario, and has not had its articles cancelled or revoked.

Good standing is important because it affects your ability to do business. Banks, lenders, commercial landlords, government agencies, and parties to significant contracts often require a Certificate of Status (sometimes called a Certificate of Good Standing) to confirm that the corporation is active and compliant before they will deal with you. If your corporation is in bad standing — because of missed annual returns, for example — you may not be able to obtain that certificate, which can delay or derail transactions.

The Ontario Business Registry allows you to search for a corporation's status. If your corporation is in bad standing due to missed filings, it can usually be remedied by bringing the filings up to date and paying any applicable late fees. However, if the province has already cancelled or dissolved the corporation, reinstatement is required, which takes more time and potentially more legal effort.

Maintaining good standing is a simple ongoing task that is best handled systematically — your lawyer or accountant can track filing deadlines.