JURISDICTIONS
Delaware
General Information
| Location | Situated on the north-east coast of the United States, about one hour’s flying time south of New York City 1 hour flying distance |
| Main Cities | Dover is the capital; Wilmington is the biggest city |
| Population | About 875,000 |
| Language |
English – US |
| Legal System | English Common Law |
| Political System | Delaware was the first state to ratify the US constitution on 7th December 1787. |
| Currency | US Dollar |
| Economy | As part of a modern and well developed Western economy, the Delaware Division of Corporations provides prompt, friendly and professional services. Its strategies include global outreach and expansion |
| Time Zone | GMT -4 |
| Major Banks | Wide range of international and local banks is situated at Delaware. |
| Principal Corporate Legislation |
Corporation: General Corporation Law |
Introduction
Over the past seven years, Delaware has been very successful in promoting its corporation services by introducing user-friendly services such as expedited service, online filings and searches. Incorporation revenue accounted for 22% of the State’s general funds in fiscal year 2007.
The popularity of Delaware is evident from the fact that it is the corporate home to 63% of the Fortune 500 companies and half of all US firms traded on the New York Stock Exchange and NASDAQ.
Delaware officials stay on the top of trends in the international business world and are able to understand and respond to rapidly changing corporate needs. They also strive to continuously expand Delaware’s global market share by carrying out official visits to other countries, e.g., China, India, the UK, etc., and also by participating in international conferences about economic affairs, corporate governance, etc.
Chief Justice Myron Steele has described Delaware as: “…at heart a customer-service organisation”. Delaware aims to be a customer-service organisation, constantly focused on serving customers.
Current Features & Benefits
- A well-developed political, legal and economic society
- Back-up provided by comprehensive and mature professionals, financial institutions and providers of legal services
- Privacy – no disclosure of beneficial owners
- No income tax is assessed on corporations’ offshore income
- Non-resident shareholders pay no Delaware state tax on shares
- Annual franchise tax is low
- Wide variety of types of entities fit for different purposes, e.g., “C” Corporation, LLC, “S” Corporation, Close Corporation, etc
- Simple company structure – like “C” Corporation, one person can act as the director, shareholder and officer
- User-friendly – timely registration, expedited service, online filing and search, etc
- Simple administration – corporate books and records are not required to be located in Delaware
| General Information | Delaware-Corporation | Delaware-LLC |
|
Stability of Jurisdiction |
Good |
Good |
|
Legal System |
Common Law |
Common Law |
|
Type of Company |
Corporation |
LLC |
| Company Information | ||
| Bearer Share | No | N/A |
|
Standard Authorised Capital / Shares |
1,500 No Par Value |
N/A |
|
Chinese Name Permitted |
No |
No |
| Official Bilingual M&A | No | No |
| Local Requirements | ||
|
Minimum Number of Shareholders |
1 |
N/A |
|
Minimum Number of Directors |
1 (b) |
N/A |
|
Company Secretary |
Yes (b) |
N/A |
| President & Treasurer | Yes (b) | Optional |
| Beneficial Owners | No | No |
| Public Filings | ||
|
Shareholders |
No |
N/A |
|
Directors |
Yes |
N/A |
|
Company Secretary |
Yes |
N/A |
| Other | ||
|
Registered Agent / Resident Agent |
Yes |
Yes |
|
Registered Office |
Yes |
Yes |
|
Annual Return / Accounts Filing |
Yes / No |
Yes / No |
|
Corporate Tax |
Nil (a) |
No (a) |
|
Change of Domicile Permitted |
Yes |
Yes |
| Shelf Companies Available | No | No |
|
Notes: |
|
| (a) |
Only on onshore profits, NO tax on offshore profits |
| (b) |
Must be natural persons; corporate entity not permissible |