Does each legal entity need its own certification?

Community
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Hi, I have a company that is keen to become certified but they have three different legal entities (Pty Ltds) that comprise the broader business. Does this mean each legal entity needs to be certified individually? Thanks so much for any guidance you can provide on this. ccing @Mindy_B_Lab too.

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Hi Mei Ling

Usually the legal requirement is applied at the parent level. Is there a common owner or holding company for these 3 entities?

Also, we should discuss whether these 3 entities could take 1 BIA to certify all 3. It is possible if there is shared operations, governance and policies.

Mindy

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Thanks @Mindy. So there is a common owner for all three entities (Pty Ltds) but no parent / subsidiary arrangement. They all have shared governance, operations and policies. So do you think they can do 1 x BIA but certify for each individual entity? Should we arrange a call? thanks!

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Thanks Meiling. Let’s discuss.

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Hi @Mindy_B_Lab I have the same question! I am working with a company who has two entities. They have shared governance, operations and policies. The top co is effectively a holding company, it does have some suppliers and employees, however these are being pushed down to the second entity. Can I provide consolidated financials etc for the two?

many thanks, Sarah

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Hi Sarah

Sounds like a fairly straightforward scenario, and the two entities have a parent/subsidiary relationship. The short answer is yes - we commonly see shared financials at the parent level, which will be the certifying entity in this case.