THE MAIN CHARACTERISTICS OF DELAWARE COMPANY

General

Type of entity LLC
Type of law Common
Shelf company availability Yes
Our time to establish a new company 2 days
Minimum government fees (excluding taxation) Varies
Corporate Taxation Fiscally transparent
Double taxation treaty access Normally No

Share Capital or Equivalent

Standard currency USD
Permitted currencies Not applicable
Minimum capital requirements USD 1

Managers

Minimum number One
Local required No
Publicly accessible records No
Location of meetings Anywhere

Members

Minimum number One
Publicly accessible records Yes
Location of meetings Anywhere

Accounts

Requirement to prepare Yes
Audit requirements No
Requirement to file accounts No
Publicly accessible accounts No

Other

Requirement to file annual return Yes
Change in domicile permitted Within USA only

Presentation of jurisdiction

Delaware is a state of United States of America located on the east coast, south of Pennsylvania.

The Delaware LLC is a divergent business entity that offers an alternative to partnerships and corporations by associating the corporate advantages of limited liability with the partnership advantage of pass-through taxation. Delaware LLCs may be exempt of federal income tax and income tax return if the following conditions are present:

  • Non-resident members;
  • Do not run business in the US;
  • Non US income source.

As it can be noticed those conditions are the ones which are present in offshoring solutions.

Who should choose Delaware Company and for which activities?

Who?

  • Entrepreneurs;
  • Consultants;
  • Stockbrokers;
  • Holding companies.

Which activities?

  • International trade;
  • Inheritance tax purposes;
  • Holding of intellectual property rights (IP);
  • E-Commerce.

INTEREST OF THE JURISDICTION OF DELAWARE

Advantages of a company in Delaware:

  • No corporate tax – 0%.
  • Account filing not required.
  • Low incorporation and administration fees.
  • Well-developed legal system.
  • Delaware Corporations are often used for American trading situations.
  • Quick incorporation procedures and readily understandable corporate law.
  • Robust and business friendly banking system.
  • Wide range of offshore services.

Disadvantages of a company in Delaware:

  • Company ownership is difficult to prove, but the directors of the company can be named in Articles of Incorporation of the company.

How to proceed

Provision of the following documents for incorporation of the company:

  • A completed application form signed by the company or by the representative;
  • Copy of valid passport;
  • A personal bill, which is less than 3 months old from the date of the application;
  • Payment of our fees.

Note: additional documents may be required depending on the certain offshore bank.

Set-up time: From the moment, we are in possession of all required documents:

  • Incorporation of a company or purchase of an existing company: 2 days;
  • Delivery of the original company documents: 15 days;
  • Offshore Bank: offshore bank account opening: 3 weeks.