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What Is a De Jure Corporation?

When conducting business in a certain country or area, it may be necessary for corporations to fulfill a charter according to the jurisdiction wherein they operate which allows the corporations to do business. This is done by submitting the appropriate documents and fulfilling any requirements and conditions set by the government of that jurisdiction.

A corporation doing business within a jurisdiction may be categorized according to whether they have fulfilled the necessary documentation and requirements set by the government of the jurisdiction wherein they operate. A de facto corporation is one that has not secured any legal documentation nor fulfilled any conditions of the jurisdiction’s government, while a de jure corporation has and subsequently earned its charter to operate its business within the jurisdiction. The term de jure translates to matter of law, which refers to the corporation’s recognition by the government. This is only done through a rigorous process of application.

In order to gain legal charter so as to operate their businesses, corporations are subject to requirements and conditions that vary from state to state and country to country. However, the general process involves the corporation submitting an application with the required documentation to the union of local governments or to the national government. This application is then reviewed and evaluated. If all required conditions have been met, the jurisdiction or state grants a charter, which allows the corporation to practice its business within the limits of the jurisdiction or within the area of the union or national government.

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