Delaware Company Formation

Delaware Company Formation

United States of America is not considered to be the tax friendly zone but it has a provision according to which Limited Liability Companies (LLCs) can be incorporated. In certain circumstances, LLCs are considered to be free from tax liability. If we talk of American perception of LLC then normally LLC is neither a partnership nor a corporation. Instead it is a type of partnership where the legal entity (company) enter into the partnership and such partnership have limited liability. LLCs are not subjected to any taxation, instead the income that it provides to the owner or members of the company, is liable for the taxation.

Any company incorporated in USA, which has non-USA residents as its member and does not generates any income and not get involves in any sort of business, will not be held liable to any sort of taxation and considered to be free from any income tax of state and federal tax duty. The states in which LLCs are allowed to be incorporated are; Delaware, Arkansas, New York, Washington, New Jersey, Florida, and Wyoming Oregon. These states require only the company annual report and the annual license fee.

Incorporation Requirements

Following are requirements for company incorporation in Delaware:

Directors

• There is a requirement of minimum of one director and it’s not necessary for the directors to be resident of Delaware.
• It is allowed to appoint corporate directors.
• No need for director’s meeting.
• There is the need to maintain public director’s register.

Secretaries

• There is requirement of minimum of one secretary and it’s not necessary for the secretaries to be resident of Delaware.
• It is allowed to appoint corporate secretaries.
• No professional qualification requirement for the secretary.

Shareholders

• There is a requirement of minimum one shareholders.
• It is allowed to appoint corporate shareholders.
• It is required to maintain public shares register.
• Par values of shares are not permitted.
• Share capital is authorised to be of 1000 shares with the value of each share of USD 1.
• Shareholders are restrained to retain or possess bearer shares.

Incorporation Fee

Kindly have a look at the section of fee schedule for description of incorporation fee. However here is the summary of the fees structure:

• Fees of government.
• Fees of local secretary.
• Fees of local agency.
• Fees of registered office.
• Fees of our service.

Once your company incorporates, you will get; certificate of incorporation along with M & A five copies, and original formation documents and minutes.

Incorporation Time

It takes 1 to 2 weeks for company incorporation in Delaware.

Offshore Bank Account

For the updated details on the facility of offshore bank account, please refer to the section of fee schedule.

Miscellaneous

• Company should have registered agent.
• If all shareholders or some are nominee, then there is no need to declare shares ultimate beneficial ownership to authorities.
• Annual returns of the company must be demonstrated.