Introduction
Corporations formed outside of Florida that wish to do business in the state must register as foreign corporations. Known as foreign qualification, this process grants your corporation the legal right to transact business in Florida. Without it, your company risks financial penalties, tax liabilities, and the inability to enforce contracts. This guide explains how to qualify a foreign corporation in Florida, from definitions to compliance requirements.
What is a Foreign Corporation
A foreign corporation is any corporation incorporated in another state but intending to operate in Florida. It does not mean the company is based internationally. For instance, a Delaware corporation that opens a branch office in Tampa is a foreign corporation in Florida and must qualify before conducting business.
When Registration is Required
Florida law considers your corporation to be doing business in the state if it establishes an office, hires employees, owns property, or conducts regular commercial activity. Occasional or isolated transactions do not generally require registration. However, once your operations become consistent, qualifying is mandatory.
Step One: Verify Your Corporate Name
Your corporate name must be distinguishable from others registered in Florida and must include a designator such as “Inc.,” “Corp.,” or “Incorporated.” If the name is not available, you will need to use a fictitious name for your Florida registration. The Sunbiz online database allows you to confirm availability before filing.
Step Two: Obtain a Certificate of Existence
You must submit a Certificate of Existence, also called a Certificate of Good Standing, from your state of incorporation. The certificate must be dated within ninety days of your Florida filing. This ensures your corporation is legally compliant in its home state before registering elsewhere.
Step Three: Appoint a Registered Agent in Florida
A registered agent with a physical address in Florida is required for every foreign corporation. The registered agent accepts legal documents and government notices on your corporation’s behalf. Using a professional service is common and often advisable to ensure reliability.
Step Four: File the Application
The official form is the Application by Foreign Corporation for Authorization to Transact Business in Florida, also referred to as Form DOC-96-04. You must provide the corporate name, jurisdiction of incorporation, date of incorporation, principal office address, registered agent details, federal employer identification number, and the names of your officers and directors. Attach the Certificate of Existence from your home state to the application.
Step Five: Pay the Fees
The filing fee is seventy dollars, which includes both the application and the registered agent designation. Optional certified copies and certificates of status are available for an additional fee. These may be useful for your corporate records or banking requirements.
Step Six: Submit to the Division of Corporations
You may file online through the Sunbiz portal, by mail to the Division of Corporations in Tallahassee, or in person. Online filing is generally faster and provides immediate confirmation.
Step Seven: Obtain the Certificate of Authority
Once the state approves your application, it issues a Certificate of Authority. This document formally authorizes your corporation to transact business in Florida. Keep this certificate with your corporate records as evidence of compliance.
Ongoing Compliance
Every foreign corporation must file an annual report with the Division of Corporations by May 1 each year. The fee for corporations is one hundred fifty dollars. Late filings result in a four hundred dollar penalty, and repeated failure can lead to administrative revocation of your authority to do business. Your corporation must also maintain accurate registered agent information at all times.
Consequences of Failing to Register
If your corporation transacts business in Florida without qualification, you may face civil penalties, be held liable for back fees and taxes, and lose the ability to bring legal actions in Florida courts. Contracts entered into while unregistered are not automatically void, but your ability to enforce them may be compromised.
Conclusion
Qualifying a foreign corporation in Florida is a legal necessity for companies seeking to operate in the state. The process is straightforward and can be completed with careful preparation. By filing the required forms, paying the appropriate fees, and maintaining annual compliance, your corporation will be fully authorized to operate in Florida and protected under its laws.Blog 2: How to Qualify a Foreign Corporation in Florida
Introduction
Corporations formed outside of Florida that wish to do business in the state must register as foreign corporations. Known as foreign qualification, this process grants your corporation the legal right to transact business in Florida. Without it, your company risks financial penalties, tax liabilities, and the inability to enforce contracts. This guide explains how to qualify a foreign corporation in Florida, from definitions to compliance requirements.
What is a Foreign Corporation
A foreign corporation is any corporation incorporated in another state but intending to operate in Florida. It does not mean the company is based internationally. For instance, a Delaware corporation that opens a branch office in Tampa is a foreign corporation in Florida and must qualify before conducting business.
When Registration is Required
Florida law considers your corporation to be doing business in the state if it establishes an office, hires employees, owns property, or conducts regular commercial activity. Occasional or isolated transactions do not generally require registration. However, once your operations become consistent, qualifying is mandatory.
Step One: Verify Your Corporate Name
Your corporate name must be distinguishable from others registered in Florida and must include a designator such as “Inc.,” “Corp.,” or “Incorporated.” If the name is not available, you will need to use a fictitious name for your Florida registration. The Sunbiz online database allows you to confirm availability before filing.
Step Two: Obtain a Certificate of Existence
You must submit a Certificate of Existence, also called a Certificate of Good Standing, from your state of incorporation. The certificate must be dated within ninety days of your Florida filing. This ensures your corporation is legally compliant in its home state before registering elsewhere.
Step Three: Appoint a Registered Agent in Florida
A registered agent with a physical address in Florida is required for every foreign corporation. The registered agent accepts legal documents and government notices on your corporation’s behalf. Using a professional service is common and often advisable to ensure reliability.
Step Four: File the Application
The official form is the Application by Foreign Corporation for Authorization to Transact Business in Florida, also referred to as Form DOC-96-04. You must provide the corporate name, jurisdiction of incorporation, date of incorporation, principal office address, registered agent details, federal employer identification number, and the names of your officers and directors. Attach the Certificate of Existence from your home state to the application.
Step Five: Pay the Fees
The filing fee is seventy dollars, which includes both the application and the registered agent designation. Optional certified copies and certificates of status are available for an additional fee. These may be useful for your corporate records or banking requirements.
Step Six: Submit to the Division of Corporations
You may file online through the Sunbiz portal, by mail to the Division of Corporations in Tallahassee, or in person. Online filing is generally faster and provides immediate confirmation.
Step Seven: Obtain the Certificate of Authority
Once the state approves your application, it issues a Certificate of Authority. This document formally authorizes your corporation to transact business in Florida. Keep this certificate with your corporate records as evidence of compliance.
Ongoing Compliance
Every foreign corporation must file an annual report with the Division of Corporations by May 1 each year. The fee for corporations is one hundred fifty dollars. Late filings result in a four hundred dollar penalty, and repeated failure can lead to administrative revocation of your authority to do business. Your corporation must also maintain accurate registered agent information at all times.
Consequences of Failing to Register
If your corporation transacts business in Florida without qualification, you may face civil penalties, be held liable for back fees and taxes, and lose the ability to bring legal actions in Florida courts. Contracts entered into while unregistered are not automatically void, but your ability to enforce them may be compromised.
Conclusion
Qualifying a foreign corporation in Florida is a legal necessity for companies seeking to operate in the state. The process is straightforward and can be completed with careful preparation. By filing the required forms, paying the appropriate fees, and maintaining annual compliance, your corporation will be fully authorized to operate in Florida and protected under its laws.