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Establishing a Company in Texas

Texas is one of the largest and most important states in the United States. Texas is located in the south-central part of the country and shares borders with Louisiana, Arkansas, Oklahoma and New Mexico. Internationally, Texas borders Mexico to the south and provides coastal access in the southeastern part of the state. The capital of Texas is Austin and its largest cities are Houston, San Antonio and Dallas. Texas has a population of 28 million residents and the origin of its name can be found in the word "táysha" which, in the language of the Native American Caddo tribe, means "friend" or "ally". The first Europeans to settle in the area were Spanish pioneers and throughout history Texas was part of the independent nation of Mexico. In 1845, Texas was officially annexed by the federal union of the United States, as the 28th state of the nation. At the outset of the 20th century, oil was discovered in Texas, bringing with it a tremendous economic boom. From that point onwards, Texas saw rapid and sizable population growth and in 1994, it surpassed New York, becoming the United States' second most populous state.

The state of Texas is identified today with the Republican side of the political map of the United States. After years of Democratic superiority in the state, Texas is now considered a conservative state. Texas's vast oil reserves have made it a rich state, strong and well-set in the American political-economic landscape. Forming a company in Texas offers convenient access to the US market, as well as to the Gulf of Mexico region. The state has substantial oil and energy fields that are of particular importance to the region's economy, as well as infrastructure that is convenient and accessible to international companies and entrepreneurs.

For Viewing Texas, USA in Google Maps - Click Here

Three Things You Probably Didn’t Know About Texas

  • Privatization of the state's electric company is evidence of the Texan independence and "isolationism". Texas leads the United States in renewable energy and natural gas. In this way, the state is, in fact, completely independent and not tied to the US federal government, as pertains to anything having to do with the supply of electricity.
  • If Texas were its own independent, sovereign country, it would be the world's seventh largest producer of oil. Large oil reserves still exist within the state’s borders, both on land and in the waters of the Gulf of Mexico. A number of well known energy companies are registered in Texas, including Noble Energy, a partner in the considerable natural gas reserves off of Israel’s Mediterranean coast.
  • In stark contrast to other states in the US, Texas law permits taking the lives of other people not only in self-defense, but also in the course of protecting one’s property from theft.

The Texan Economy

Texas' large population alongside its abundant natural resources, highly developed urban centers and leading academic institutions, have turned the country's economy into one of the most advanced economies in the United States. Texas’s GDP alone stands at the staggering sum of $1.65 trillion USD. The economy is heavily influenced by the state of the US oil market, and that of the global oil market, as well. Beyond oil and energy, Texas boasts additional sectors with significant economic activity, including: agriculture, cattle, cotton, mining and others. The cities of Austin and Houston are home to exclusive technology centers such as the Johnson Space Center (NASA) and numerous well-known and diverse hi-tech companies including Dell, the global computer maker and some of the US’s leading retail and commerce companies.  

With Texas being associated with the right wing – conservative side of the spectrum, it’s economic model incorporates a relatively low tax rate and, what is considered, limited government involvement in business. Texas is known for it’s advanced financial infrastructure, offering a favorable and accessible environment to entrepreneurs wishing to open businesses in Texas as part of their efforts to penetrate the US and global marketplaces.

Mellius specializes in the formation of companies in Texas, as well as in other states in the US. Our clients enjoy a wide range of solutions for registering and establishing companies in Texas, specifically tailored to their business needs and activities.

Additional Information Regarding Establishing Companies in Texas:

Type of company
Relevant Companies Law
Texas Business Organizations Code (BOC)
Businesses are required to provide the authorities with the address of a local office.
Language of original incorporation documents
Finance and Taxation
US Dollar (USD)
Corporate tax rate
Standard share capital
Not relevant (the correct legal term is “units” and not “shares”).
Office Holders
Obligation to appoint company secretary
Not required
Obligation to appoint local secretary
Not required
Type of entity that may function as company secretary
Obligation to appoint company director
Required (the legal term is “Manager” and 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
Obligation to register local shareholders
Not required
Minimum number of shareholders
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Not Relevant
Accessibility of Information
Company registrar
Information regarding company title holders is not publicly accessible.
Annual Assembly and Reporting
Obligation to hold annual assembly
Not required
Obligation to prepare financial reports
Obligation to submit financial reports
Not required