Domestic Corporation

Definition of 'Domestic Corporation'


A company that conducts its affairs in its home country. A domestic corporation is often taxed differently than a foreign corporation, and may be required to pay duties or fees on the importation of its products. Typically, a domestic corporation is able to conduct business in other states or other parts of the country where it has filed its articles of incorporation.

Business that are incorporated in a different country from which they originate are referred to as foreign corporations.

Investopedia explains 'Domestic Corporation'


Many companies in the United States are incorporated in Delaware, meaning that they are subject to the laws of that state. If a company incorporates in Delaware but does not do business there, it is considered an out-of-state corporation or a foreign corporation.


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