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When you incorporate a business in Delaware, your company becomes domestic to the state of Delaware and foreign to every other state. Foreign Qualification is the process in which another state gives your Delaware company the authority to operate there, but under Delaware’s corporate law structure.
North Dakota, like many other states, requires an application process and a state fee in order to register your Delaware company as a foreign entity to do business in North Dakota.
In addition, the North Dakota also requires a Certificate of Good Standing from the state of Delaware. The Certificate of Good Standing is a document from your company’s domestic state that proves the business is up to date on all Franchise Tax and has a current Registered Agent in Delaware.
A Delaware Certificate of Good Standing will still be required for new companies as well. The Certificate of Good Standing must be current, within 90 days. North Dakota also requires your company to retain a Registered Agent within that state in order to receive any service of process.
To foreign qualify your Delaware company in North Dakota, business owners often work with their Delaware Registered Agent. We assist current and new clients with Foreign Qualification every day.
We can prepare the application, obtain your company’s Certificate of Good Standing from Delaware and also act as a North Dakota Registered Agent. Once the application is prepared, we will email the documents to you for signatures. North Dakota will not require an original so the documents can typically be emailed back. The typical turnaround time is 5-15 days.
Once your Delaware company is registered to do business in North Dakota, please keep in mind that you will be responsible for staying in compliance in both North Dakota and Delaware.
North Dakota requires an annual report that is due each year, starting the year after the business is registered. The annual report notice will be mailed to your Registered Agent.
If you have questions about how to register and operate your Delaware company in North Dakota, please call us at 1-800-345-2677, Ext 6130 or email firstname.lastname@example.org.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.