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HomeCorporations CodeCh. 21§ 2106 Foreign Corporation Qualification

§ 2106 Foreign Corporation Qualification

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2106 Foreign Corporation Qualification

This law says a foreign corporation must file a statement, pay the required fees, and get a certificate before it can do business in the state, and it must use a name that isn’t already taken unless it gets a court order or agrees to use a different name.

Key Takeaways

  • •A foreign corporation must file a statement, pay fees, and receive a certificate to be qualified for intrastate business.
  • •The corporation’s name must be unique; if it conflicts with an existing name, the corporation must get a court order or use an alternate name approved by the Secretary of State.
  • •Insurers need an extra certificate from the Insurance Commissioner before they can use an alternate name.

Example

A company from another state called "Sunrise Bakery" wants to open a shop here, but a local company already uses the name "Sunrise Bakery".

The out‑of‑state bakery can’t qualify to do business here unless it either gets a court order stopping the local bakery from using that name, or it agrees to use a different name (like "Sunrise Bakery LLC") and tells the Secretary of State about the new name.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2106 Foreign Corporation Qualification

(a) Subject to the provisions of subdivision (b), upon payment of the fees required by law the Secretary of State shall file the statement and designation prescribed in Section 2105 and shall issue to the corporation a certificate of qualification stating the date of filing of said statement and designation and that the corporation is qualified to transact intrastate business, subject, however, to any licensing requirements otherwise imposed by the laws of this state. (b) No foreign corporation having a name which would not be available pursuant to subdivision (b) of Section 201 to a new corporation organized under this division shall transact intrastate business in this state or qualify to do so under this chapter or file an amended statement and designation containing such name unless either: (1) it obtains and files an order from a court of competent jurisdiction permanently enjoining the other corporation having a conflicting name from doing business in this state under that name; or (2) the Secretary of State finds, upon proof by affidavit or otherwise as the Secretary of State may determine, that the business to be conducted in this state by the foreign corporation is not the same as or similar to the business being conducted by the corporation (or to be conducted by the proposed corporation) with whose name it may conflict and that the public is not likely to be deceived, and the foreign corporation agrees that it will transact business in this state under an alternate name disclosed to the Secretary of State and that it will use the alternate name in all of its dealings with the Secretary of State and in the conduct of its affairs in this state. The alternate name may be its name with the addition of some distinguishing word or words acceptable to the Secretary of State or a name available for the name of a domestic corporation pursuant to subdivision (b) of Section 201. A corporation which has made such an agreement with the Secretary of State shall not do business in this state except under the name agreed upon, so long as the agreement remains in effect. This subdivision shall not apply to any corporation that is subject to the Insurance Code as an insurer unless the insurer has first obtained from the Insurance Commissioner a certificate approving the alternate name. (Amended by Stats. 2022, Ch. 617, Sec. 35. (SB 1202) Effective January 1, 2023.)

Last verified: January 10, 2026

Key Terms

certificate of qualificationforeign corporation

Related Statutes

  • § 2107 Foreign Corporation Name Change
  • § 2101 Foreign Corporation Name Registration
  • § 2102 Foreign Corporation Agent Designation
  • § 2110 Service On Foreign Corporations
  • § 2110.1 Foreign Corporation Service Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 2106.
View Official Source