Foreign Corporation

Definition - What does Foreign Corporation mean?

A foreign corporation is a corporation that does business in a state or country other than the one that it is incorporated in. For example, if a company is incorporated in Denmark, yet it does significant amounts of business in the United States, then this company would be a foreign corporation in the United States.

Justipedia explains Foreign Corporation

Foreign corporations are simply companies that do business in areas other than where they are primarily located or incorporated. This can happen when a company gets large enough to expand into new markets, or when the nature of the business calls for the company to do business in distant locations. For example, a company that makes alpine skis and is incorporated in Kansas may do its sales in Colorado where there is more demand for skis, due to the Rocky Mountains. In this case, the ski company would be a foreign corporation in Colorado.

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