Authority to transact business required.

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47-1A-1501. Authority to transact business required.

A foreign corporation may not transact business in this state until it obtains a certificate of authority from the Office of the Secretary of State. The following activities, among others, do not constitute transacting business within the meaning of this section:

(1)Maintaining, defending, or settling any proceeding;

(2)Holding meetings of the board of directors or shareholders or carrying on other activities concerning internal corporate affairs;

(3)Maintaining bank accounts;

(4)Maintaining offices or agencies for the transfer, exchange, and registration of the corporation's own securities or maintaining trustees or depositories with respect to those securities;

(5)Selling through independent contractors;

(6)Soliciting or obtaining orders, whether by mail or through employees or agents or otherwise, if the orders require acceptance outside this state before they become contracts;

(7)Creating or acquiring indebtedness, mortgages, and security interests in real or personal property;

(8)Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

(9)Owning, without more, real or personal property;

(10)Conducting an isolated transaction that is completed within thirty days and that is not one in the course of repeated transactions of a like nature; and

(11)Transacting business in interstate commerce.

Source: SL 2005, ch 239, §347.


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