What characterizes a foreign corporation?

A foreign corporation is characterized by being incorporated in one state but conducting business operations in one or more other states. This definition emphasizes the relationship between the state of incorporation and the states where the corporation operates.

For example, if a corporation is formed under the laws of Delaware but opens offices and conducts business in California, it is considered a foreign corporation in California. This designation is important because foreign corporations typically must register with the states where they operate, which entails meeting specific regulatory requirements, such as filing fees and obtaining licenses to do business.

The other definitions provided do not accurately capture what constitutes a foreign corporation. A corporation that only functions within its state of incorporation is simply a domestic corporation. A corporation specializing in international business does not necessarily imply that it meets the criteria of a foreign corporation unless it is incorporated in one state and operating in another. Lastly, a corporation with no physical operations at all doesn't define the scope of its incorporation or how it engages in business, making it irrelevant to the concept of a foreign corporation.