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Cal. Corporations Code § 191 (2026)

✓ current as of May 2026
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(a)For the purposes of Chapter 21 (commencing with Section 2100), “transact intrastate business” means entering into repeated and successive transactions of its business in this state, other than interstate or foreign commerce.

(b)A foreign corporation shall not be considered to be transacting intrastate business merely because its subsidiary transacts intrastate business or merely because of its status as any one or more of the following:

(1)A shareholder of a domestic corporation.

(2)A shareholder of a foreign corporation transacting intrastate business.

(3)A limited partner of a domestic limited partnership.

(4)A limited partner of a foreign limited partnership transacting intrastate business.

(5)A member or manager of a domestic limited liability company.

(6)A member or manager of a foreign limited liability company transacting intrastate business.

(c)Without excluding other activities that may not constitute transacting intrastate business, a foreign corporation shall not be considered to be transacting intrastate business within the meaning of subdivision (a) solely by reason of carrying on in this state any one or more of the following activities:

(1)Maintaining or defending any action or suit or any administrative or arbitration proceeding, or effecting the settlement thereof or the settlement of claims or disputes.

(2)Holding meetings of its board or shareholders or carrying on other activities concerning its internal affairs.

(3)Maintaining bank accounts.

(4)Maintaining offices or agencies for the transfer, exchange, and registration of its securities or depositaries with relation to its securities.

(5)Effecting sales through independent contractors.

(6)Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where those orders require acceptance outside this state before becoming binding contracts.

(7)Creating evidences of debt or mortgages, liens or security interests on real or personal property.

(8)Conducting an isolated transaction completed within a period of 180 days and not in the course of a number of repeated transactions of like nature.

(d)Without excluding other activities that may not constitute transacting intrastate business, any foreign lending institution, including, but not limited to: any foreign banking corporation, any foreign corporation all of the capital stock of which is owned by one or more foreign banking corporations, any foreign savings and loan association, any foreign insurance company or any foreign corporation or association authorized by its charter to invest in loans secured by real and personal property, whether organized under the laws of the United States or of any other state, district or territory of the United States, shall not be considered to be doing, transacting, or engaging in business in this state solely by reason of engaging in any or all of the following activities either on its own behalf or as a trustee of a pension plan, employee profit sharing or retirement plan, testamentary or inter vivos trust, or in any other fiduciary capacity:

(1)The acquisition by purchase, by contract to purchase, by making of advance commitments to purchase or by assignment of loans, secured or unsecured, or any interest therein, if those activities are carried on from outside this state by the lending institution.

(2)The making by an officer or employee of physical inspections and appraisals of real or personal property securing or proposed to secure any loan, if the officer or employee making any physical inspection or appraisal is not a resident of and does not maintain a place of business for that purpose in this state.

(3)The ownership of any loans and the enforcement of any loans by trustee’s sale, judicial process, or deed in lieu of foreclosure or otherwise.

(4)The modification, renewal, extension, transfer, or sale of loans or the acceptance of additional or substitute security therefor or the full or partial release of the security therefor or the acceptance of substitute or additional obligors thereon, if the activities are carried on from outside this state by the lending institution.

(5)The engaging by contractual arrangement of a corporation, firm, or association, qualified to do business in this state, that is not a subsidiary or parent of the lending institution and that is not under common management with the lending institution, to make collections and to service loans in any manner whatsoever, including the payment of ground rents, taxes, assessments, insurance, and the like and the making, on behalf of the lending institution, of physical inspections and appraisals of real or personal property securing any loans or proposed to secure any loans, and the performance of any such engagement.

(6)The acquisition of title to the real or personal property covered by any mortgage, deed of trust, or other security instrument by trustee’s sale, judicial sale, foreclosure or deed in lieu of foreclosure, or for the purpose of transferring title to any federal agency or instrumentality as the insurer or guarantor of any loan, and the retention of title to any real or personal property so acquired pending the orderly sale or other disposition thereof.

(7)The engaging in activities necessary or appropriate to carry out any of the foregoing activities.

Nothing contained in this subdivision shall be construed to permit any foreign banking corporation to maintain an office in this state otherwise than as provided by the laws of this state or to limit the powers conferred upon any foreign banking corporation as set forth in the laws of this state or to permit any foreign lending institution to maintain an office in this state except as otherwise permitted under the laws of this state.

Notes of Decisions
Cited in 17 cases (7 in the last 5 years), 1980–2025 · leading case: Champlaie v. BAC Home Loans Servicing, LP, 706 F. Supp. 2d 1029 (E.D. Cal. 2009).
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Champlaie v. BAC Home Loans Servicing, LP, 706 F. Supp. 2d 1029 (E.D. Cal. 2009). · cites it 5× “See Cal. Corp.Code § 191. It is not clear to the court that MERS’s activity is exempt.”
Hurst v. Buczek Enter., LLC, 870 F. Supp. 2d 810 (N.D. Cal. 2012). · cites it 4× “See Cal. Corp. Code § 191 (c)(6) (“Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where those orders require acceptance outside this state before becoming binding contracts,” is not transacting intrastate business).”
In re Qualcomm Inc., 162 F. Supp. 3d 1029 (N.D. Cal. 2016). “Code § 2105 (a) ("A foreign corporation shall not transact intra *1038 state business without having first obtained from the Secretary of State a certificate of qualification''); Cal. Corp. Code § 191 (a) (“For the purposes of Chapter 21 (commencing with Section 2100), 'transact…”
Mediterranean Exports, Inc. v. Superior Court, 119 Cal. App. 3d 605 (Cal. Ct. App. 1981). · cites it 2× “business in this state, other than interstate or foreign commerce,” but the same statute expressly excludes from the definition such activities as the maintenance of a bank account; the effectuation of sales “through independent contractors”; and the solicitation of orders which…”
United Sys. of Arkansas, Inc. v. Stamison, 98 Cal. Daily Op. Serv. 3515 (Cal. Ct. App. 1998). “) Soliciting or procuring orders where such orders require acceptance without the state to become contracts does not constitute transacting intrastate business. (Id., § 191, subd. (c)(6).) Simply submitting a bid in response to the RFQ does not constitute transacting intrastate…”
Neogard Corp. v. Malott & Peterson-Grundy, 106 Cal. App. 3d 213 (Cal. Ct. App. 1980). “” (Corp. Code, § 191, subd. (c)(5) and (6); Stats.”
Armstrong-Harris v. Wells Fargo Bank, N.A. (N.D. Cal. 2022). · cites it 3× “1 , 23305a, and Cal. Corp. Code § 191 (C)(7) (Claim 13) 20 In his thirteenth claim, Plaintiff brings a claim for cancellation of a voidable contract under 21 Cal.”
Henley Fin., Ltd. v. Goyette & Assoc., Inc. (E.D. Cal. 2022). · cites it 2× “1 at 10); Cal. Corp. Code § 191 (a); see also 11 LeBlanc Nutritions, Inc.”
GoMirror v. Brockstar CA4/3 (Cal. Ct. App. 2013). · cites it 3× “(Corp. Code, § 191, subd. (a); Thorner v. Selective Cam Transmission Co.”
The Bank of New York Mellon v. Marguerite Deselms (9th Cir. 2021). “4 See Cal. Corp. Code § 191 (d); see also id. § 2105(a).”
P. ex rel. Dept. of Ins. v. Symons Emergency Specialties CA4/2 (Cal. Ct. App. 2021). “(a) [requiring foreign corporations to obtain a certificate of qualification from the Secretary of State before “transact[ing] intrastate business”]; Corp. Code, § 191, subd. (a) [defining ‘“transact intrastate business”’ and distinguishing intrastate business from interstate…”
Solarmore Mgt. Servs., Inc. v. Bankr. Est. of DC Solar Solutions (E.D. Cal. 2022). “10 Corp. Code § 191(a) defines intrastate business as entering into 11 repeated and successive transactions of its business in this 12 state, other than interstate or foreign commerce.”
Show all 17 citing cases →
— Cal. Corporations Code § 191(a) — 2 cases
Hurst v. Buczek Enter., LLC, 870 F. Supp. 2d 810 (N.D. Cal. 2012). “See Cal. Corp. Code § 191 (c)(6) (“Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where those orders require acceptance outside this state before becoming binding contracts,” is not transacting intrastate business).”
Solarmore Mgt. Servs., Inc. v. Bankr. Est. of DC Solar Solutions (E.D. Cal. 2022). “10 Corp. Code § 191(a) defines intrastate business as entering into 11 repeated and successive transactions of its business in this 12 state, other than interstate or foreign commerce.”
— Cal. Corporations Code § 191(c)(1) — 1 case
Henley Fin., Ltd. v. Goyette & Assoc., Inc. (E.D. Cal. 2022). “1 at 10); Cal. Corp. Code § 191 (a); see also 11 LeBlanc Nutritions, Inc.”
— Cal. Corporations Code § 191(c)(5) — 1 case
Hurst v. Buczek Enter., LLC, 870 F. Supp. 2d 810 (N.D. Cal. 2012). “See Cal. Corp. Code § 191 (c)(6) (“Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where those orders require acceptance outside this state before becoming binding contracts,” is not transacting intrastate business).”
— Cal. Corporations Code § 191(c)(6) — 1 case
Hurst v. Buczek Enter., LLC, 870 F. Supp. 2d 810 (N.D. Cal. 2012). “See Cal. Corp. Code § 191 (c)(6) (“Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where those orders require acceptance outside this state before becoming binding contracts,” is not transacting intrastate business).”
— Cal. Corporations Code § 191(c)(7) — 1 case
Champlaie v. BAC Home Loans Servicing, LP, 706 F. Supp. 2d 1029 (E.D. Cal. 2009). “See Cal. Corp.Code § 191. It is not clear to the court that MERS’s activity is exempt.”
— Cal. Corporations Code § 191(d) — 1 case
Champlaie v. BAC Home Loans Servicing, LP, 706 F. Supp. 2d 1029 (E.D. Cal. 2009). “See Cal. Corp.Code § 191. It is not clear to the court that MERS’s activity is exempt.”
— Cal. Corporations Code § 191(d)(3) — 1 case
Champlaie v. BAC Home Loans Servicing, LP, 706 F. Supp. 2d 1029 (E.D. Cal. 2009). “See Cal. Corp.Code § 191. It is not clear to the court that MERS’s activity is exempt.”
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