Foreign Qualification

AAA

DEFINITION of 'Foreign Qualification'

Legal permission for a corporation to do business in a state other than its home state. Without first obtaining foreign qualification, a corporation may not legally do business in another state, or if it does, it may not be granted the protection of that state's court system. A corporation that maintains an office and/or seeks clients in another state may be considered a foreign or out-of-state entity and may need to obtain foreign qualification status to officially conduct business out of state. Without this status, the company could receive an injunction against doing business in the state.

INVESTOPEDIA EXPLAINS 'Foreign Qualification'

The secretary of state is responsible for granting foreign qualification in each state. The typical process for obtaining foreign qualification is to file an application and pay a fee of a few hundred dollars. It may also be necessary to name a company representative who is located in the foreign state and establish a fictitious business name not already in use in that state. The corporation will receive a certificate of foreign qualification when its application is approved. These regulations may also apply to limited partnerships, business trusts and limited liability companies. Foreign qualification rules vary by state.

RELATED TERMS
  1. Shell Corporation

    A corporation without active business operations or significant ...
  2. Subchapter S (S Corporation)

    A form of corporation that meets the IRS requirements to be taxed ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at ...
  4. Closed Corporation

    A business that is set up using a corporate business structure, ...
  5. Corporation

    A legal entity that is separate and distinct from its owners. ...
  6. Cumis Counsel

    Legal counsel chosen by the insured when the insurer has a conflict ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Investing Basics

    The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  2. Fundamental Analysis

    Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  3. Entrepreneurship

    Should You Incorporate Your Business?

    Find out how becoming a corporation can protect and further your finances.
  4. Economics

    Growth and Stabilization In The Global Economy

    The continued advance for stocks implies a stabilization in international economies, which indicates global growth is steadying after declining last year.
  5. Investing

    Hedged ETFs That Help You Cushion Currency Impact

    If you’re an investor holding non-U.S. assets, the returns on your investments will be affected when you translate your investment from its local currency
  6. Investing

    What Has Been Groupon’s Growth Strategy?

    Groupon established a strategy with efforts to become a broader force in the e-commerce world and to expand more strongly into international markets.
  7. Investing

    The Impact Of A Stronger Dollar In The Markets

    The economy continues to improve, but also demonstrated that some areas of the stock market are more vulnerable to an increase in interest rates.
  8. Economics

    The Impact Of Ending The US Embargo On Cuba

    Many argue that ending the US embargo on Cuba will not only make US consumers happy, but also help the US economy and bring more freedoms to Cuba.
  9. Economics

    This Is A Small Country With Huge Potential to Grow

    Trinidad and Tobago's increased revenue and economic success have been primarily generated by its energy sector, but it still might be best to diversify.
  10. Economics

    Popular Places Where U.S. Citizens Need A Visa

    A U.S. passport will get you into many countries, but not everywhere. Here's how to visit five of the most popular destinations that require visas.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center