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

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.