Foreign Corporation Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Foreign Corporation, written in plain English, along with examples of how it is used.
What is Foreign Corporation?
(n) Foreign corporation is the body incorporated in another state or country other than the state or place where it operate or otherwise perform business activities.
History and Meaning of Foreign Corporation
A foreign corporation is a business entity that is incorporated in another state or country than the one where it operates its business activities. In simpler terms, a foreign corporation is a business that is registered and operates in one state or country and conducts its business in another. This term became popular in the United States in the late 19th and early 20th centuries when many European corporations began to expand their operations into the US, and American corporations began doing business in Europe.
In the US, a foreign corporation must comply with certain regulations and laws that govern international business operations. To operate in a new state, a foreign corporation must register with the Secretary of State's office and regularly submit reports that disclose financial information to state and federal agencies. Foreign corporations are also subject to taxes and other fees in the states or countries where they operate.
Examples of Foreign Corporation
- Toyota Motors Corporation is a Japanese corporation that operates in various countries around the world, including the US.
- HSBC Holdings plc is a British multinational banking and financial services holding company that operates in over 80 countries worldwide.
- Nestle S.A. is a Swiss multinational food and beverage company that operates in over 190 countries.
Legal Terms Similar to Foreign Corporation
- Domestic Corporation: A business entity that is incorporated and operates within the same state or country.
- Alien Corporation: A business entity that is incorporated in a foreign country but operates in the US.
- Multinational Corporation: A company that operates in multiple countries or has subsidiaries in different parts of the world.