Necessary in bidding processes, supplier registration, mergers and acquisitions, the certificates can be issued at the municipal, state, and federal levels.
published on June 18, 2024
by Andressa Lago
Many companies do not make the connection between the act of monitoring certificates and their financial health. In order to be financially healthy, a company must have credit on the market, pay its taxes and suppliers on time, and make investments. With regard to the company’s compliance, debt clearance certificates must be issued regularly in order for it to remain in compliance. “The certificates are issued at municipal, state, and federal levels, and attest to the non-existence (debt clearance certificate) or existence (debt liability certificate) of debts on behalf of the company. Other reports show pending payments and, once everything is analyzed together, it is possible to get an overview of the company’s financial health,” explains Andressa Lago, manager of the Paralegal department at the PLBrasil Group, which is specialized in services for setting up and regularizing company licenses and registrations.
These documents are necessary for companies to deal with any outstanding issues, but that is not all. “In case of bidding processes, supplier registration, mergers and acquisitions, and partnerships, for example, certificates need to be issued – and there are cases where companies miss out on opportunities because they do not have the certificates updated on a monthly basis”, she says.
Monitoring certificates on a monthly basis is key for several reasons: guaranteeing legal security of one’s rights and assets, preventing fraud, monitoring pending financial issues and speeding up several different processes.
Other situations when clearance certificates are required
In addition to clearance certificates, which is the most common monthly monitoring for companies, issuing certificates can be important for making informed decisions, i.e. information contained in the certificates can be useful for making decisions in different areas of life.
For example, an extremely important certificate is the real estate certificate, which proves that the real estate, whether private or shared between companies, has no liens or irregularities, thus protecting purchase and sale of such real estate and speeding up this process. “Issuing all the clearance certificates on time has everything to do with the company’s financial health because it shows that it operates within good practices and ensures its compliance. So, doing business with that company is safe, as there is trust in their processes”, says Andressa Lago.
The Paralegal team of PLBrasil Group is available to assist you with certificate management through the channels below:
+55 (11) 3292-5050
nn.sp@plbrasil.com.br
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