Quasi Corporation Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Quasi Corporation, written in plain English, along with examples of how it is used.
What is Quasi Corporation?
(n) A quasi corporation is the one which is not legally existing for want of completing the legal requirements of its incorporation but acts in every manner similar to a legitimate corporation. For example the existence of the corporation before formal incorporation.
History and Meaning of Quasi Corporation
A quasi corporation refers to an entity that conducts business as if it were a legitimate corporation, even though it has not completed the necessary legal requirements for incorporation. In other words, it is a legal entity that exists as a corporation but is not recognized as one due to incomplete legal processes. A quasi corporation is not entitled to benefits enjoyed by legitimate corporations, such as limited liability protections, but is expected to comply with regulatory requirements that govern their operations.
Quasi corporations have existed for many years. They are often created during the process of incorporating a business. An entity may start conducting business as a corporation before the incorporation process is completed, in which case it is referred to as a quasi corporation.
Examples of Quasi Corporation
- A group of individuals may decide to launch a business and start selling products or services even before completing the legal requirements necessary for incorporation. In this case, they would be operating as a quasi corporation.
- A company may have an international division that operates as a quasi corporation in a foreign country before the formal incorporation process is completed.
- A startup company may have an innovation lab that operates as a quasi corporation before the parent company is incorporated.
Legal Terms Similar to Quasi Corporation
- De facto corporation: A corporation that has been in operation as if it were a legitimate corporation, but has not complied with legal requirements for incorporation.
- Corporation by Estoppel: A corporation that appears to have been incorporated due to actions taken by individuals or entities that relied upon its existence as a corporation, even though it was not legally incorporated.
- Pre-incorporation Agreement: A contractual agreement that outlines the terms and conditions of a business venture prior to formal incorporation.