:
registration of legal entity

Cost of registration The cost of the second year Number of Directors Corporate tax rates Payment of Charter Capital Financial statements
847.00 USD 800.00 USD 1 0.00% 0.00 No

The state of Delaware in the USA is considered as one of the most popular jurisdictions for company registration. The capital of the state is the city of Dover.

Why is it cost-effective to register company in Delaware?

Today, the company in Delaware is one of the cheapest in terms of registration costs. And the process of establishing the company is quick and simple.

Holding companies, investment companies, which place of doing business is located outside the territory of the state, do not pay income tax. This circumstance attracts many business owners. It should be noted that the income tax rate for companies doing business in the state is 8.7% and is considered to be one of the highest in the USA.

The situation in which the tax rate in the state of Delaware equals to 0% will be considered further. But why Delaware is so attractive for company registration?

The registration of companies in Delaware is popular because of state legislation based on the concept of consideration of each individual case by the court ex aequo et bono, and not through the application of existing precedents.

The state legislation allows the registered company in Delaware to operate without entering information about it to the tax authorities in the case of doing business outside the United States.

The legislative framework

The regulatory basis of the companies’ activity in Delaware is such legal act of the state (that is a section of the state statutes) as "General Corporate Law".

According to its provisions, directors, founders, as well as executive management of the company receive broad powers in resolving issues concerning structure of the company and management of corporate affairs.

All conditions are provided in the state for business to be prosperous with minimal interference from outside. In addition, there is minimum of legislative requirements with regard to the Charter, the certificate, and other documents of the company.

Prevalent organizational and legal forms in Delaware

Most of companies in Delaware are being established in the following organizational and legal forms:

  • Limited Liability Company (LLC),

  • C Corporation - non-residents can establish only this form of corporation;

  • S Corporation.

These entities can be used as offshore companies in Delaware. Non-residents of the United States of America have the right to register or buy the indicated companies. The business of offshore enterprises in the state of Delaware is conducted exclusively outside the territory of jurisdiction.

Registration of Corporation in Delaware. Peculiarities

  • Non-resident founders can establish only C-Corporation;
  • Minimum amount of the authorized capital is not determined. The law allows not to pay the statutory fund for the period of up to 3 years.
  • At least one shareholder and director is required to register the corporation in Delaware. There are no formal requirements for these persons.
  • Company registration in Delaware is conducted in electronic format without the presence of founders.
  • It is not necessary to fix the names of the owners of the company being registered.
  • lIt is allowed to control the organization without disclosing information about the person who exercises substantial control. There is no control over the procedure for holding meetings of shareholders;
  • lIt is possible to combine the position of the owner with any other position in the company.
  • lBearer shares are prohibited. Owners can freely buy, sell and transfer the issued shares. The company may own shares and assets of the other corporations, and property within the state and outside.
  • lShareholders are liable for their obligations according to the amount of shares owned by them. It is possible to pay surplus dividends.
  • lIf the company tends to conduct its activities in the territory of the jurisdiction, it is necessary to fill out special form.
  • lIt is necessary to have legal address and registered agent who will receive correspondence with regards to the company from state authorities.
  • lAccounting records can be stored outside of Delaware.
  • lThe company name should contain organizational and legal form or its abbreviation and should not include words related to the types of activities subject to licensing.

Bookkeeping in the state of Delaware

The company registered in the state of Delaware shall submit annual report 12 months after registration. Annual report is required in cases when profits are allocated between US residents.

If the company does not have Tax ID and economic activity in the state, then it is possible not to submit certain reports, except for accounting activities and reflecting financial transactions.

The company submits annual report to the Department of Internal Expenses (through the registered agent), maintains accounting records only in the case of tax registration in the United States.

Taxes in Delaware

If the company does not own property and does not operate in the United States, the tax rate equals to 0%. In other cases, income tax will be 8.7%. It is also necessary to take into account the tax on monopoly rights and privileges, which equals to 1% of the authorized capital and is paid in case of availability of employees who are the residents of the state.

Companies are exempt from taxes on transactions with shares, deposits in state banks and deals with companies from low-tax or tax-free jurisdictions.

Only companies having tax registration and receiving income in the territory of the jurisdiction pay federal corporate income tax that is 34%.

In order to maintain positive image of the company, some owners pay minimum taxes and annual fees. The reporting is submitted with the help of firms providing secretarial services. This allows owners to remain in good standing with the state secretariat.

We will register ready-made company in the USA in the state of Delaware for you within the shortest time possible. Registration of company in the USA in Delaware is one of the simplest and cheapest ways to start legitimate international business. Registration of companies is one of the main directions of our work.

 

Set of documents
   
  • Apostilled Certificate of incorporation  
  • By-Laws 
  • Statement of Incorporator in Lieu of Organization Meeting 
Nominee director and shareholder
   
  • Resolution effecting the issuing the Power of Attorney  
  • Apostilled Power of Attorney  
  • Consent Letter 
  • Director Resignation Letter 
  • Nominee Director’s Declaration  
  • Resolution effecting the change Director 
  • Deed of Trust  
  • Instrument of Transfer 

General information
Square6 452.00
Population783 600.00
CapitalDover
Unemployment17.60
State polityConstitution - based federal republic
Telephone code1 302
Place in the world in corruption24
locationNorth America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico
Climatemostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the northwest are ameliorated occasionally in Janu
Literacy rate99.00%
Ethnic groupsWhite 79.96%, black 12.85%, Asian 4.43%, Amerindian and Alaska native 0.97%, native Hawaiian and other Pacific islander 0.18%, two or more races 1.61%
National currencyU. S. dollar (USD)
USD exchange rate1.00
GDP per capita12
Official languageEnglish
Credit ratingN/R
The judiciaryThe U.S. Supreme Court, Courts of Appeal, Federal District Courts U.S. Courts states and District Courts
Executive authorityHead of government: President; Vice President. Government: Cabinet appointed by the president with Senate approval. governor of state
Legislative authoritiesbicameral Congress: the Senate (100 seats), the House of Representatives (435 seats)
Corporate information
Opportunity to purchase ready-made companiesНет
Legal systemCommon Law
The use of the Cyrillic alphabet in the nameНет
Local registered officeДа
Organizational and Legal Formslimited liability company, limited partnership, "C" Corporation, "S" Corporation, partnership, limited partnership, sole proprietorship, joint venture and branch of a foreign corporation
Local registered agentДа
Shares and share capital
Standard currencyU. S. dollar
Information about the beneficiary is disclosedNo restrictions
Bearer sharesНет
Possibility to issue shares without par valueНет
Taxation
VATНет
Basic corporate tax rate0.00%
Capital gains taxНет
Currency controlНет
Corporate tax rates details0%
Stamp dutyНет
Director and Secretary
Minimum number of directors1
The requirement for residency directorsНет
Director of legal entities are allowedНет
The data reveals to the local agentДа
Data field to the public registryНет
The requirement for the presence of the SecretaryНет
Requirement to the residense of the SecretaryНет
Requirements to qualification of the SecretaryНет
Legal entity as the SecretaryНет
Shareholder and beneficiary
Data is entered in the public registerНет
Shareholders residency requirementНет
Information about the beneficiary is disclosedНет
Information may be disclosed to the local agentДа
Shareholders-legal entities are acceptableНет
Reporting
The requirement for filing reportsНет
Open access to reportsНет
Statutory auditНет
The requirement for filing Annual ReturnНет
Open access to the Annual ReturnНет
The requirement for reportsДа
Treaty on avoidance of double taxation (States which signed)60
Membership in the OECDДа
Is it offshore according to Russian legislationНет
Trademark Registration
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