Can a corporation not authorized to do business in New York be a party to a New York litigation?

January 15, 2020

 

 

A corporation formed in New York can sue or be sued in a litigation in New York. N.Y. Business Corp. Law § 202.

 

Of course, many corporations are formed in other states other than New York.  In New York parlance, such corporations are “foreign corporations.”

 

A foreign corporation must apply for authorization to do business in New York.  N.Y. Business Corp. Law § 1301.  A foreign corporation may not do business in New York without such authorization.

 

Moreover, a foreign corporation, not authorized to do business in New York, may not sue another party in New York.  N.Y. Business Corp. Law § 1312. 

 

In order to bring a litigation in New York, a pre-existing foreign corporation must obtain authorization to do business in New York and pay all back fees and taxes owed for its existence.  Id.

 

That being said, a foreign corporation not authorized to do business in New York may still be made a defendant in a litigation.  Id.

 

For more information about this article or other issues, please contact us, The Bachman Law Firm PLLC at judith@thebachmanlawfirm.com or 845-639-3210.

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