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.

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.