Over 2 million businesses are located in New York state. If you want to start a foreign business company in this vast business area, you must meet a number of requirements set out by the state of New York.
What do we mean by a New York foreign corporation?
A New York foreign corporation is corporation (INC) originally formed in a different state that is registered to carry out business with the New York state. The procedure for the registration of a foreign corporation into New York state is known as foreign qualification. This qualification permits a foreign corporation to undertake business transactions in New York.
How to Successfully file a Foreign corporation in the state
- The name of the foreign corporation.
- The jurisdiction of the foreign corporation.
- The purpose of the foreign corporation.
- The county in which the foreign corporation is to be established.
The name of the foreign corporation
In the application, the name that is provided should match the original name given to your foreign corporation in the indigenous state you formed it. In the case where the name may not be available, you can use a non-existent name.
The jurisdiction of the foreign corporation
To proceed with the filing, the location and date of the INC where your corporation was founded are required.
The purpose of the foreign corporation
Make sure that your corporation has been granted consent or approval by any state official, board, agency, department, or any other body concerning the business activities or acts it takes part in. After this, when you file, your state text should state that your corporation was established to engage in a constitutional venture or enterprise under the Business Corporation Law on why an organization may be formed.
The county in which the foreign corporation is to be established
You should list the county where your corporation is going to be established. Finally, you must state whether your corporation is going to commence its business endeavors in the state at the filing time or on a later date.
How does a Foreign Corporation qualify to conduct business in New York?
The method to a Foreign Corporation Qualification in the state of New York
Choose a corporate name
Following Section 301 of the Business Corporation Law, your corporate name of choice should not be in use by another corporation in New York. This name should also not include prohibited phrases and words.
Filing of the application
Apply for Authority from the Divison of Corporations. You must also include the Certificate of Existence of your corporation from its indigenous state, and certificate of good standing in that state.
Settle up the registration fee
The application filing is $225. Pay it and finish off your filing process.
Quick facts about Foreign Corporation Registration
- Print the Foreign Corporation Registration form.
- The application filing fee is $225.
- Include the Certificate of Existence and certificate of good standing.
- The processing time is 2-3 weeks.
- The 24 hours expedite fee is $25.
Prohibited terms and expressions for corporate names
There are more than 70 terms and expressions that are prohibited when choosing a name for your corporation. You can use this link to view these words at the website of the Division of Corporations.
A New York Registered Agent
A New York registered agent maintains a registered office (a permanent location) within the state. It is at the registered office that agents receive official mail and serviced processes in place of the client. The agents then address the relevant document to their client in a set process.
Biannual statements and taxes
Following the registration of your foreign corporation, you must file a biannual statement every two years in the month that foreign INC was registered. Finally, as a corporation in the state, you will be required to file a yearly license tax report by the 15th of March for S-type corporations, and by the 15th of April for C-type corporations. The corporate tax is 6.5% to 7.25% for C-type corporations on net income. There is also gross receipts tax, and capital base tax in New York.
The state of New York is accommodating to foreign corporations engaging in business activities or acts as long as they follow the regulations of the Business Corporation Law. To make sure that your application for running a Foreign Corporation in New York goes smoothly and efficiently, you should talk with an experienced, knowledgeable advisor (attorney or accountant) at the outset of your application.