BizTerm Definition
Certificate of Authority
Short Definition
A foreign corporations right to do business in another state
Full Definition

Issued by the proper authority (i.e. the Secretary of State or Corporation Commission) to a foreign corporation (a corporation incorporated in another state or country) granting the corporation the right to do business in that state. For example, a Delaware corporation may wish to do business in California. But the Secretary of State of California will require it to get a Certificate of Authority before it can start operations. So it must file a request to operate in California. That approval is the Certificate of Authority.

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