<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 47-1A-1501 - Authority to transact business required. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2068410Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2068410SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2068410CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2068410Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2068410DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2068410Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2068410000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2068410SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2068410SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2068410Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-1A-1501"><span class="s2068410SENU">47-1A-1501</span></a><span xml:space="preserve" class="s2068410SENU">. </span><span class="s2068410CL">Authority to transact business required.</span></p><p dir="ltr" class="s2068410Normal-000000"><span class="s2068410DefaultParagraphFont">A foreign corporation may not transact business in this state until it obtains a certificate of authority from the Office of the Secretary of State. The following activities, among others, do not constitute transacting business within the meaning of this section:</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(1)    Maintaining, defending, or settling any proceeding;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(2)    Holding meetings of the board of directors or shareholders or carrying on other activities concerning internal corporate affairs;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(3)    Maintaining bank accounts;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(4)    Maintaining offices or agencies for the transfer, exchange, and registration of the corporation's own securities or maintaining trustees or depositories with respect to those securities;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(5)    Selling through independent contractors;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(6)    Soliciting or obtaining orders, whether by mail or through employees or agents or otherwise, if the orders require acceptance outside this state before they become contracts;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(7)    Creating or acquiring indebtedness, mortgages, and security interests in real or personal property;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(8)    Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(9)    Owning, without more, real or personal property;</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(10)    Conducting an isolated transaction that is completed within thirty days and that is not one in the course of repeated transactions of a like nature; and</span></p><p dir="ltr" class="s2068410Normal-000001"><span class="s2068410DefaultParagraphFont">(11)    Transacting business in interstate commerce.</span></p><p dir="ltr" class="s2068410Normal"><span xml:space="preserve" class="s2068410000002"> </span></p><p dir="ltr" class="s2068410Normal"><span class="s2068410SCL">Source:</span><span xml:space="preserve" class="s2068410SCL-000003"> SL 2005, ch 239, § 347.</span></p></div></body></html>