Door-Closing Statute Law and Legal Definition

Door-closing statute refers to a state legislation denying a plaintiff to access local courts unless specified conditions are met. A state under door-closing statute requires a foreign company to qualify before doing business in the state. [8 USCS § 1252].

Under a door-closing statute, a foreign corporation willing to commence a business in a particular state is required to comply the following:

1. The statute requires a foreign company to register with Secretary of state;

2.The statute requires a foreign corporation to pay fees or tax ;

3.The statute requires a foreign corporation to appoint an agent to receive service of process.