Establishing a company in Delaware
Delaware is one of the smallest states in the U.S., located on its East Coast along the Atlantic Ocean. On its borders there are Maryland to the west and south, New Jersey to the northeast, and Pennsylvania to the north. The state name originates from Baron De La Warr, an Englishman who was the first Governor of Pennsylvania. It is situated on a peninsula that is divided into three counties. It was one of the 13 colonies to fight in the American Revolution, and in 1787 this tiny state was the first to ratify the U.S. Constitution, forever giving it the name “The First State”.
The state capital is Dover. It has an area of 6,452 km², making it the 49th in terms of state size in the U.S. The population is only 917,000 citizens. Geographically, most of its land is a level plain, making it ideal for agriculture, and the climate along the Atlantic provides cold, rainy and snowed winters, and relatively hot and humid summers. The early settlers of Delaware were indigenous Indian tribes, and then later white Westerns from Holland came to inhabit the region. In 1664 the area was conquered by the British, a fact that has left its mark in the state character.
- President Joe Biden is a native of Delaware and served as state senator from 1973.
- Delaware imposes no taxes on consumers, making shopping an especially favorite pastime for locals and many visitors that come to the state for shopping sprees of various goods.
- One unusual event held in various venues throughout the state around November of each year is the World Championship Punkin Chunkin”, an odd and hilarious competition where participants lob pumpkins. A range of weird devices and machines are used, divided into categories, with winners gaining blue ribbons for the farthest thrown distance.
Delaware’s economy includes several central and active sectors, and state policies regarding tax regulations have made this small state a major hub for efficient and successful registration of foreign companies. Other revenue sources include agriculture and industry, but the majority of the economy is based on services. Agriculturally, the state produces poultry, chicks for the poultry industry, soy beans, milk and corn. The industrial sector is comprised primarily of chemical companies, such as pharmaceuticals and other bio-technologies. In terms of establishing a business in the state, it is a prime example of an inviting business environment with bragging rights to an amazing fact: approximately 50% of all publically traded companies are incorporated in Delaware. This friendly business arena includes simply incorporation requirements and low taxes (franchise taxes generate one-fifth of state revenues).
General
Type of company |
LLC |
Relevant Companies Law |
The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code), Chapter 18, Limited Liability Company Act |
Offices |
Delaware law requires companies to provide a local office address |
Language of original incorporation documents |
English |
Finance and Taxation
Currency |
USD |
Corporate tax rate |
0%, but FBAR forms must be submitted when bank account balance exceeds 10,000 USD |
Standard share capital |
Irrelevant |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Not required |
Obligation to appoint local secretary |
Irrelevant |
Type of entity that may function as company secretary |
Depends on the specific Emirate |
Director |
|
Obligation to appoint company director |
Required (called “manager” – not “director”) |
Obligation to appoint local company director |
Not required |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual |
Shareholders |
|
Obligation to register shareholders |
Required (called “members” – not “shareholders”) |
Obligation to register local shareholders |
Not required |
Minimum number of shareholders |
1 |
Type of entity that may register as shareholder |
Individual |
Type of shares |
Irrelevant |
Accessibility of Information
Company registrar |
information regarding office holders is not accessible to the public |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Not required |
Obligation to prepare financial reports |
Required |
Obligation to submit financial reports |
Not required |
Accept
