Delaware
Background
Low start-up and maintenance costs
Currently no due diligence and 'know your client' requirements
Excellent professional infrastructure
A popular jurisdiction for its user-friendly corporate laws
Introduction
The State of Delaware is the second smallest state in America, situated on the east coast of the United States. Presently 800,000 people populate this English-speaking democratic state.
Delaware is the leading jurisdiction for the incorporation of companies in the United States (US). Companies incorporated in Delaware account for more than half of the Fortune 500 companies as well as one out of every three companies listed on the New York Stock Exchange and the American Stock Exchange.
Law And Taxation
One frequently-cited advantage is that the state's internationally renowned Court of Chancery, deals exclusively with corporate matters. Judges of this Court are appointed on merit alone and not elected.
The corporate laws of Delaware are very user-friendly and have often been used by other states as a standard for testing corporate laws. As a result, the corporate laws in Delaware are familiar to many lawyers both domestically and internationally.
Companies of primary interest to offshore investors are the Corporation and the Limited Liability Company (LLC). LLCs are a hybrid of a Corporation and a Partnership, sharing the same features as a Corporation but may also choose to be taxed as a corporation, partnership or trust.
There is no income state tax for Delaware Corporations or LLCs that do not conduct businessin the US. The only tax typically payable is an annual franchise tax which falls due on the 1st of March (Corporation) and 1st June (LLC) each year respectively. The annual franchise tax for a Corporation with the standard minimum share capital is USD35 plus an additional USD25 filing fee for the annual franchise tax report.
In situations where no businessis conducted in the US and the Shareholders, Directors and Officers are not US citizens, a Delaware Company has the same characteristics as a normal "offshore" company.
Corporate Requirements
The minimum number of Directors and Shareholders for Corporation is one. Corporate Directors are not permitted. A President, Treasurer and Secretary must be appointed. One person can hold all of these offices and there are no residency requirements. However, the Registered Office and Registered Agent must be situated in Delaware. The Office and Agent details are also included in the Certificate of Incorporation. There are no minimum capital requirements. Details of directors and officers must be provided.
Corporate governance for LLCs is governed by a written agreement among its members. Subject to the Certificate of Incorporation or the By-laws, shareholders and directors are not requiredto hold meetings, as the law permits shareholders and directors to act by written unanimous consent.
There are no restrictions as to the type of businessfor a Corporation. Delaware permits a general purpose clause for any legal businessactivity for which a Corporation may be incorporated. LLCs may not take on the businessof insurance or banking for which licenses are required.
Local Infrastructure
The legal infrastructure in Delaware is regarded as the best in the US, especially given the Chancery Court's 200 years of legal precedent. Banking and accounting services are also readily available.
Our Services
We can incorporate a companywith your choice of name and also confirm the availability of names in advance. All companies are provided with a complete companykit, including share certificates, 5 copies of the By-Laws plus an electronic copy on CD-ROM, statutory registers, common seal, companychop and a certificate of guarantee of quality. In addition, we can assist clients in obtaining certificates of good standing and other certificates of corporate existence.
Through our Group's subsidiary companyin Delaware, we provide the necessary ongoing services as Registered Office and Agent for all companies that we incorporate. We would also be pleased to provide such services to other Delaware-incorporated companies
