The process by which a corporation or other form of business entity registers to do business in a state other than its state of formation. A business entity is considered domestic only in its state of incorporation. In all other states, these entities are regarded as foreign, and may require foreign qualification to do business. Therefore, when creating a business entity, it is important for the board of directors to authorize the entity to apply for foreign qualification in foreign states, and for the entity to file any necessary foreign qualification forms before it does business in or with the foreign state.

Applying for foreign qualification typically involves:

For more information on applying for foreign qualification, as well as overviews and analyses of the steps necessary in forming a business entity, see:

For a list of Checklists in selected states setting out the steps required to register foreign entities in those jurisdictions, see the Qualifying a Foreign Entity to Do Business Toolkit. To view and customize comparison charts on registration requirements for foreign corporations and LLCs in up to 50 states (including key statutes, agency links, and annual report requirements), see Quick Compare Charts, Qualifying a Foreign Corporation to Do Business and Qualifying a Foreign LLC to Do Business.