Practical Law Glossary Item 9-382-3482 (Approx. 3 pages)
Glossary
Foreign Qualification
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:
Checking the name availability of the corporation in the state.
Preparing and filing any necessary documents, often called a certificate of authority. These documents often contain similar information to the certificate of incorporation and include a submission to service of process in the jurisdiction.
Payment of fees.
For more information on applying for foreign qualification, as well as overviews and analyses of the steps necessary in forming a business entity, see: