Delaware is the preferred American state for company incorporation because of the numerous benefits the foreign investors have there. The easy process of registration and all kinds of tax benefits make foreigners choose Delaware for doing business, whether conducted on a local plan or from abroad. Persons who want to start an LLC in Delaware may address our specialists in company formation in USA. We also invite you to take a look at our general guide for company incorporation in Delaware, where we present to you the main aspects related to doing business in this state.
| Quick Facts | |
|---|---|
| Reasons for doing business in Delaware |
– fast incorporation, – tax benefits, – no need for shareholders to reside in Delaware |
|
Best use for companies in Delaware |
For doing business outside USA |
|
Proper business entity for incorporation in Delaware |
Limited liability company |
| Minimum share capital for LLC in Delaware | USD 1 |
| Formalities for starting a business in Delaware |
– drafting the Articles of Association, – opening a bank account, – registering for taxation |
| Resident directors and shareholders (YES/NO) | No |
| Required number of directors and shareholders |
At least 1 |
| Registered agent required (YES/NO) |
Yes |
| Corporate bank account required in USA |
Yes, but not mandatory |
| Time frame for company incorporation in Delaware | Around 2 months |
| Corporate income tax |
0% |
| Hiring staff for company in Delaware (YES/NO) |
No |
| Traveling to USA for company formation in Delaware (YES/NO) |
No |
| Filling annual return (YES/NO) |
Yes |
| How can our agents help you with company formation in Delaware? |
– preparation of documents, – tax registration, – collaboration with the local authorities, – opening a bank account |
Table of Contents
The minimum share capital for starting a business in Delaware
Limited liability companies are the preferred business entities in Delaware for entrepreneurs in America, whether as local business persons or from overseas. One of the main benefits of such a form of business is that there is no need for a minimum share capital deposited whenstarting a business in Delaware.
Regardless of the American state in which you want to develop a business, the support of our local specialists will be helpful. For instance, if you want to open a branch in USA, you must consider formalities such as preparing the necessary documents, opening a bank account, and registering for the payment of taxes, among others. Feel free to get in touch with us for complete assistance in this matter.
Conditions for company formation in Delaware
Persons who want to open a company in Delaware can choose to set up an LLC with the Division of Corporations which issues the certificate of incorporation. Additionally, we mention that an LLC can be established by at least one shareholder, just like in the case of a sole proprietorship. It is recommended to have at least two shareholders when forming an LLC in Delaware. Also, please consider that your company in Delaware must have an appointed registered agent who can be the company itself or a partner of the business.
If you are thinking of opening a company in USA, we recommend the services offered by our local specialists. They can take care of formalities such as the preparation of documents, the application for the necessary business license, as well as the registration for the payment of taxes, regardless of the chosen American state. You will have the guarantee that you comply with the legislation and that the registration process is straightforward.
No VAT for companies in Delaware
One of the main and appreciated benefits which come with company incorporation in Delaware is that particularly in this state there is no VAT imposed, therefore, you can set up the company without having to register for such tax, as most companies in the world do. You can discuss more about Delaware LLC formation with our local specialists.
Opening a bank account for your company in Delaware
Companies can open bank accounts in Delaware, but it is not mandatory if it regards a foreign branch with a settled bank account in the home country. But if you would like to open a bank account in Delaware, you must prepare copies of the company’s documents, like the memorandum of association, the certificate of incorporation, and also the certificate of good standing. Banks in Delaware may also solicit other types of documents, certified or legalized.
Hiring staff for your company in Delaware
As a foreigner who wants to start a business in Delaware, our company formation agents in USA suggest you ask for the services of a recruitment company in the state. These can provide the necessary workforce for your business, in accordance with your requests, and furthermore, your human resources department can make the research accordingly. Please talk to our agents for more details about company formation in Delaware.
If you want to set up an LLC company in Delaware, you can collaborate with one of our company formation agents in the USA. They have the necessary experience and can take care of formalities such as drafting the necessary documents, registering for the payment of taxes, and opening a bank account, among others. What is good to know is the fact that there is no obligation for shareholders to live in this state. Also, a company like this can carry out its activities outside the USA.
Salaries in companies in Delaware
Once you have registered your business in Delaware, you should consider the requirements regarding the minimum wage established by the law in the state. As it is known, each position in the company is subject to a different kind of salary. You should also consider that the average salary in Delaware is $52,000 per year, but it may vary.
Opening a website for your company in Delaware
Foreigners with companies registered in Delaware must consider linking their activities to a website. Even if a website already exists, one must consider translating it into the English language if this option is not available, and moreover, it is suggested to update the company’s services and activities, including the ones offered on the American territory. More about creating a Delaware LLC can be discussed with our local agents.
A virtual office for your business in Delaware
Are you interested in company incorporation in Delaware? You should know that there are many entrepreneurs who do not want to rent or buy an office for their company in Delaware. They have the possibility of obtaining the services of a virtual office in Delaware. We also mention that our consultants can provide such services on request.
Income tax for companies in Delaware
Another advantage when starting a business in Delaware is that there is no income tax if the company does not perform activities in that state.
Why open a company in Delaware
Delaware is known as a corporate haven, alongside Wyoming and Nevada. The General Law Corporation of Delaware is advantageous and flexible for companies registered here. Additionally, one of the reasons why you should start a business in Delaware is that the main office can be anywhere in the world, as the shareholders are not obliged to run the business in the state.
Creating a foreign LLC in Delaware
Companies registered in Delaware can activate in foreign countries under specific conditions like obtaining the Foreign Qualification for operating the activities in those states. This type of document is also known as the Certificate of Authority and it is issued as soon as the new business has a physical address. This means that a Delaware franchise can be established anywhere in the world. Applying for EIN – the Employer Identification Number is mandatory for these companies, and the Internal Revenue Service or the IRS is the institution in charge of issuing the necessary certificates and the tax ID. Being a franchise LLC, this means that a yearly report is needed and this is called Franchise Tax Report for which you’ll need to pay approximately USD 300.
Limited liability companies in Delaware
From the beginning, we mention that there are interesting benefits for opening an LLC in Delaware: there is no minimum share capital imposed and at least one shareholder can establish a business form like this. The owners of an LLC in Delaware have protected assets against possible debts. The profits and the losses of a limited liability company pass through the personal income tax returns of the shareholders in Delaware. One should consider appointing a representative agent whit a physical address in Delaware if the business is registered from abroad. A board of directors must be assigned in order to manage the activities of the LLC.
Our company formation agents can provide assistance if you would like to start a company in USA. The formalities can be explained and managed by one of our specialists, who can also help you with opening a bank account. Depending on the type of structure you want to establish, we will guide you in terms of documents and requirements imposed by the authorities. You can also benefit from a free case evaluation as soon as you decide on working with our team.
Corporations in Delaware
Corporations in Delaware regard large-scale businesses, and the members of such entity are not responsible for the company’s debts or issues, just like in an LLC. Each corporation in Delaware must add words like incorporated, foundation, corporation, club, company, limited or association, and details like the business address, the purpose of the company and name of the registered agent which will act like the representative. Corporations in Delaware are subject to a franchise tax, and besides that, the annual report must be filed each year in June. Besides registering a traditional corporation, one can direct the attention to professional corporations which can be set up only by members who own varied licenses in certain domains. If you want to set up a company in USA and especially a corporation in Delaware, please remember that our advisors can offer complete support.
Limited partnerships in Delaware
A limited partnership in Delaware is also a suitable business form to consider because the owners do not respond to the losses or debts registered. Individuals interested in opening a limited partnership in Delaware must agree on who the silent partner liable in the amount of the contributed capital is, and who the general member liable for the activities and the actions in the firm is.
General partnerships in Delaware
Business partners who want to share the same rights and interests in a company can register a general partnership in Delaware. In this matter, a signed contract which comprises the rules and regulations of the partnership is recommended. We also mention that the Division of Corporations in Delaware is in charge of issuing the certificates for companies in this state.
Do I need a business license in Delaware?
Yes, companies in Delaware will have to provide the necessary licenses and permits before running the activities in this state. Here is what you need to know about the licenses and permits in Delaware:
- The seller and reseller permit, the health permit, and the building permits are needed.
- The home occupation permit and the signage permit need to be obtained.
- The business operation license or the business privilege license is necessary for your Delaware LLC.
- Delaware Division of Revenue issues the business license for domestic and foreign investors in this state.
- Delaware One-Stop Business Licensing and Registration Service issues the mandatory licenses and permits for running the activities in this state.
If you are interested in company incorporation in Delaware, we recommend you to get in touch with our team of company formation representatives in USA and find out detailed information.
Can I create an offshore in Delaware?
Yes, if you are looking for a proper business climate and an appreciated offshore destination in USA, you can choose Delaware for business and respect the conditions imposed in this matter:
- A Delaware offshore can be established under the rules of a limited liability company.
- Local and foreign entrepreneurs can choose Delaware for creating an offshore.
- A Delaware offshore can be established by at least one stockholder.
- The Articles of Association are the needed documents for such a business entity.
- Just like any other company, a Delaware offshore needs a bank account.
- An offshore in Delaware needs a representative agent appointed by owners.
- The minimum share capital for an offshore in Delaware is not imposed.
In terms of benefits, Delaware offshore companies are preferred for many reasons, such as 100% ownership, no restrictions for the number of shareholders, complete privacy, minimal costs for incorporation, and a fast registration within a few days. If you are a foreign entrepreneur looking for company formation in USA, including Delaware, you can solicit the support of our agents who can run through all the formalities in agreement with your business needs. Instead of wondering about the complexity of company registration in Delaware, it is best to get in touch with our team specialized in company incorporation in Delaware and let us handle the paperwork and other requirements.
Main conditions for setting up an offshore in Delaware
An individual who wants to start a business in USA may open anoffshore company that comes with varied tax benefits. For instance, there are no VAT, personal income taxes, or other levies for non-residents working in such a company. For Delaware offshore company formation, please consider the following requirements:
- it can be set up by at least one shareholder;
- the accepted name of the business must end with the termination LLC or Limited Liability Company;
- you must prepare the Articles of Association;
- you must appoint a registered agent for your LLC in Delaware;
- the LLC must have a bank account.
Offshores in Delaware are not subject to public disclosure, as these can be set up in complete privacy for the owner. Furthermore, LLCs in Delaware won’t need annual reports compared to other forms of businesses in America. Opening a company in USA, whether a corporation or an LLC, requires attention and a better understanding of the legislation of each state, in our case, of Delaware, which is permissible for foreign entrepreneurs.
The USA company formation can be explained and supervised by our team of specialists in company incorporation in America.
Delaware offshore company registration for non-residents
Those interested in Delaware offshore company registration do not have to visit this state or live in Delaware to be able to open an offshore company. However, there are restrictions regarding the establishment of this business structure in Delaware. For example, entrepreneurs from countries such as Russia, North Korea, Cuba, Syria, and Iran cannot get involved in Delaware offshore company formation.
Non-residents can choose a corporation, LLC, limited partnership, or non-profit corporation to open an offshore company in Delaware, without them being registered as residents in the respective American state. We remind you that our local agents can take care of the formalities involved and guide you regarding the necessary documents, as well as the collaboration with the relevant authorities.
International entrepreneurs have at their fingertips multiple possibilities for business development in the American states. If you have decided to start a company in USA, we recommend that you collaborate with our specialists and find out the required formalities. Among these we mention the drafting and submission of Articles of Association, opening a bank account, tax registration, and more.
Those who want to set up a branch in USA should know that the process can take around 5 weeks. During all this time, the necessary documents will be drawn up, including the Articles of Association, a bank account will be opened and the formalities for obtaining the necessary business license will be prepared. It should be mentioned that the management of the company does not have to be local, therefore, you have the freedom to choose regardless of the country of origin.
Duties of a registered agent in Delaware
As mentioned above, an offshore company in Delaware must have a registered agent. It has a series of attributions, including the registration formalities in this American state. Here are other attributions:
- He/she will take care of the necessary documents for the company, as well as their presentation to the Delaware Division of Corporations and/or the Secretary of the State of Delaware.
- Any legal action against the offshore company in Delaware comes to the attention of the registered agent.
You can talk to one of our company formation agents in USA and learn more about how to open an offshore company in Delaware and the responsibilities of a registered agent. Find out more about Delaware offshore company registration from us.
Investors who want to set up an LLC company in Delaware need a local representative agent. A single shareholder is sufficient, and USD 1 represents the minimum share capital. Besides these aspects, we mention that there is no need for shareholders to reside in this American state. And in terms of benefits, this structure is subject to an extremely beneficial tax system, with a 0% corporate tax rate. Get in touch with us and discover all the aspects that interest you.
Important features of an offshore Delaware company
Offshore companies in Delaware present a number of advantages and are preferred by foreign investors who want to benefit from a good tax system. Among the most important features of offshore companies in Delaware we mention:
- 0% corporate tax rate.
- Registered office in USA required.
- Registered agent needed.
- Availability of buying a shelf company.
- Registration of a limited liability company, as the optimal structure for offshore.
- Confidentiality of shareholders and directors.
- No minimum capital is required.
- At least one director is needed, regardless of nationality.
- Company secretary required.
- No public access to accounting documents.
- Filing annual returns is required.
- 0% tax rate on royalty payments and distribution.
- No auditing requirements.
- Business operations must be conducted outside Delaware.
- No need for company meetings.
A short guide for company formation in Delaware
Entrepreneurs interested in Delaware corporation formation should know that the registration formalities are quite simple. We present you a short guide that can help you open a company in Delaware in a fast and reliable manner:
- Decide on the corporate name – Words like “company”, “incorporated”, “club”, “corporation”, “limited”, or society” are permitted for the formation of the business name of the company in Delaware. Abbreviations are also accepted. Once the business name is selected, a verification is required with the Delaware Secretary of State.
- Prepare the documents – The Certificate of Incorporation or the Articles of Association must be filled and submitted to the same institution mentioned above. An online filling is also permitted, yet you can discuss it with our agents for support.
- Appointing the registered agent – This is another essential step in company formation in Delaware. A registered agent can be a person or another company with residency in Delaware as the main requirement. Our agents can act as representatives for your business in this state.
- Preparing the internal corporate document – Bylaws represent the internal corporate document with information about the standard rules of the company. There is no obligation for having such documents, however, these might be used for creditors and banks verifications. Bylaws are kept at the main business office in Delaware.
- Open a bank account – If you want to start a business in Delaware you should open a bank account related to the company. All the financial transactions can be made through this bank account. Make sure you choose the right type of bank, in accordance with the needs of your future business.
- Register for taxation – When creating a company in Delaware, tax registration is required. The EIN or the Employer Identification Number is issued by the IRS (Internal Revenue Service) and shows that your business in Delaware is a taxpayer. One of our company formation agents in USA can assist you throughout the registration formalities.
- Obtain the business license – Activities in Delaware cannot commence without a business license. This is issued by the Delaware Division of Revenue. In some cases, local business licenses are solicited, depending on the city or county the company is incorporated. This is another topic covered by our agents.
- Obtain the company seal – You can start the activities of your business in Delaware if you obtain the company seal. The procedures in this matter can be discussed with our agents in USA.
These are, in large lines the main requirements for company incorporation in Delaware, reminding that each step can be managed in a professional manner by our company formation specialists in USA. Delaware is a great destination for business, yet you need to observe the regulations and respect the registration conditions. Talk to us and discover how we can help.
Investing in USA
USA was the second-largest investor in the world in 2019 and continues to present confidence among international entrepreneurs who want to expand their business portfolios. There is no doubt that USA is great for business in all sectors and all states. Most investments that come from countries like Germany, Canada, UK, France, and Ireland are absorbed by sectors like manufacturing, trade and maintenance, finance, and insurance. The quality of business is excellent in USA and allows the fast registration of companies without any complicated formalities. Delaware, for example, is a generous state from a business point of view because there are many advantages, among which, the ones related to taxation. Offshore companies are permitted in Delaware, and many foreign investors already enjoy the benefits of owning such businesses in this American state. Referring to facts and figures, the following are quite interesting and highlight the business and the economic direction of USA:
- The 2020 Doing Business report ranked USA 6th out of 190 worldwide countries for the simplified business process.
- More than USD 9,465 billion represented the total FDI stock for USA in 2019.
- The attraction for greenfield investment was reflected by the total value registered in 2019: nearly USD 102 billion.
- More than 40% of the foreign investments in USA in 2018 were absorbed by the manufacturing sector, followed by the financial and insurance with more than 12%.
FAQ about company formation in Delaware
1. Do I need to travel to Delaware to open a company?
No, there is no obligation for foreign investors to come to Delaware for business incorporation. As soon as you decided on the wanted business structure, let our company formation representatives take care of all the formalities. Delaware corporation formation can be discussed with our team.
2. How do I verify if the business name is available?
Delaware Secretary of State provides support whether online or at the local offices for investors wanting to check the available business names. It is important to know that the company name must end with LLC, L.L.C. or Limited Liability Company, as a mandatory business request in this state.
3. Do I need a registered agent for My LLC in Delaware?
Yes, your business needs to have a local representative agent who can act on behalf of your company. You can talk to our agents for support in this matter.
4. What is the minimum share capital for companies in Delaware?
There is no need for a minimum share capital to be deposited for your business as there is no such condition imposed. This is an important advantage considered by international investors.
5. Can I open an offshore in Delaware?
Yes, it is quite easy to register an offshore in Delaware, mentioning that you need to form and incorporate a limited liability company first. Complete privacy is offered by offshore companies registered in Delaware.
For a better understanding of the company incorporation in Delaware, please get in touch with our team of experts in USA and discuss further details.