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Foreign Corporate Structures

Foreign Corporate Structures

May 21, 2019 | Joe

The designation of Foreign Corporation is given to a Foreign Corporate Structures that operate within another jurisdiction outside of the jurisdiction where it is domiciled. Most often, corporations are initially formed in a single jurisdiction before expanding into other jurisdictions.


Creditors are restricted from suing the Foreign Corporate Structures stockholders to collect debts of the corporation. The C-Corporation’s stockholders’s personal assets are protected from attachment or seizure to pay the company’s debts. This feature creates a limited personal liability for business debts. There are also lower applicable tax rates for distributing corporate profits between stockholders. As well as no limit on how many people can become stockholders.

Typical Uses

Foreign Corporate Structures operate within a single jurisdiction or I multiple jurisdictions and may perform the following types of operations:

  • Offering stock publicly or privately
  • Manufacturing operations
  • Commercial and retail businesses with operations in many geographic locations
  • Businesses seeking to compensate employees with stock
  • Businesses seeking a clear separation between business ownership and management
  • Non-profit organizations typically conduct operations as a corporation.

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