Alabama Constitution Section 232 Foreign corporations doing business in state
Alabama Constitution – Section 232: Foreign Corporations Doing Business in State
Text of Section 232:
"No foreign corporation shall do any business in this state without having at least one known place of business and an authorized agent in the state upon whom process may be served; and no foreign corporation shall engage in or carry on any business in this state which a domestic corporation is prohibited from doing. Nothing in this section shall limit the power of the legislature to impose conditions under which foreign corporations may be licensed to do business in this state, or to revoke such license."
Plain-English Summary:
Section 232 of the Alabama Constitution outlines rules for foreign (out-of-state or international) corporations that want to do business in Alabama:
✅ Requirements to Operate:
The foreign corporation must have:
At least one known place of business in Alabama, and
An authorized agent in the state who can be legally served (i.e., receive legal documents like lawsuits).
❌ Restrictions:
A foreign corporation cannot do any business in Alabama that a domestic (Alabama-based) corporation is prohibited from doing.
Example: If Alabama law says local companies can't run a certain kind of business, out-of-state companies can't do it either.
🛑 Legislative Control:
The Alabama Legislature has the power to:
Set conditions for foreign corporations to be licensed to do business, and
Revoke those licenses at its discretion.
Key Points:
This section ensures legal accountability for foreign corporations.
It promotes fairness by preventing foreign businesses from bypassing rules that apply to local companies.
The legislature retains broad power to regulate or deny access to foreign businesses as needed.
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