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Establishing a company in Arkansas

Arkansas is a southern U.S. state bordering on Louisiana to the south, Texas to the southwest, Oklahoma to the west, and Tennessee and Mississippi to the east. The origin of the state name derives from the local Indian dialect that predated the French colonization of the region. Geographically it is very diverse, beginning with the impressive mountain ranges to the northwest, to the wide-open plains along the Mississippi River and Arkansas Delta to the southeast. The official and most spoken language is English, although Spanish is also widely spoken in certain areas.

The state capital is Little Rock, the largest and most populated city. General population is 3 million scattered over 137,000 km². The climate is mostly humid and subtropical, so winters are generally cold and dry, and summers hot to moderate.

For Viewing Arkansas, USA in Google Maps - Click Here

Three things you did not know about Arkansas:

  • Arkansas is the birthplace of the huge retail conglomerate Walmart, the biggest retail company in the world and the biggest employer in the U.S. The company founder, Sam Walton, was born and raised in the state.
  • Bill Clinton, one of the most successful and esteemed American presidents (1993-2001), is also an Arkansas native. Before running for the post, Clinton served as state governor in two separate terms.
  • Barbequed pork is an Arkansas specialty, found in many local restaurants across the state. Another famous local dish is fried catfish, served usually with sauerkraut, fried corn balls and a choice of french-fries or baked potato.

Arkansas’ economy

Arkansas has made the shift from an impoverished plantation agriculture-based economy of its early years to a diverse and developed economy that is now suited to address local needs.  State GDP is 105 billion USD and per capita income is 36,000 USD, ranked almost the lowest among the U.S. states. Major economic sectors include agriculture and industry, with only four Fortune 500 companies having chosen to set their HQs in the state. The agricultural sector is primarily based on the lumber industry, eggs and poultry, beef, pork, soy beans, grain for cattle, rice and cotton. The industrial sector is primarily based on the manufacture of processed foods, electric products, mechanical equipment, metal goods and paper goods. Additionally, the state also has a mining industry for natural gas, oil, gravel and various minerals.

In terms of tourism, Arkansas is known as the “Natural State”, maintaining huge swathes of natural landscapes and national parks that draw many visitors. In recent years the state has also begun the institution of an encouraging business environment and efficient infrastructure, urging companies to register there, resulting in many U.S.-based companies already established in the state.

Incorporating a limited liability company (LLC) in Arkansas combines the advantages of a partnership with that of a limited company. In terms of taxation, LLCs whose source of income is from outside the U.S. are exempt from submitting income tax reports and enjoy a 0% rate of corporate tax.

Additional information about establishing companies in Arkansas:

Type of company
Relevant Companies Law
2010 Arkansas Code, Title 4 - Business and Commercial Law
Law requires companies to provide a local office address
Language of original incorporation documents
Finance and Taxation
Corporate tax rate
0%, but FBAR forms must be submitted when bank account balance exceeds 10,000 USD
Standard share capital
Office Holders
Obligation to appoint company secretary
Not required
Obligation to appoint local secretary
Type of entity that may function as company secretary
Obligation to appoint company director
Required (called “manager” – not “director”)
Obligation to appoint local company director
Not required
Minimum number of directors
Type of entity that may serve as company director
Obligation to register shareholders
Required (called “members” – not “shareholders”)
Obligation to register local shareholders
Minimum number of shareholders
1 (aged 21 and up)
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Accessibility of Information
Company registrar
information regarding office holders is accessible to the public
Annual Assembly and Reporting
Obligation to hold annual assembly
Not required
Obligation to prepare financial reports
Obligation to submit financial reports
Not required