Foreign Sales Corporation Law and Legal Definition

Foreign Sales Corporation (“FSC”) is a classification given to a U.S. corporation which engages in substantial export business. Exporters may register as FSC in order to receive certain tax advantages. A FSC must:

1) maintain its office and books of account in a country that has exchange of information agreement with the U.S.

2) have at least one director residing in the country of the office, and

3) derive income from export of U.S. goods and/or services to that country.