More than 900,000 have their business entities in the state of Delaware. While the number of companies registered in Delaware is very important, the more noteworthy still is the fact that so many large well-known organisations are incorporated in Delaware, of the corporations that are listed in the Fortune 500, more than one-half are incorporated in Delaware. It is no wonder that Delaware has become so popular.
There are a number of reasons why Delaware company registration has become so prestigious. Delaware has a modern and nationally known corporation statute and a well-developed case law that simplifies in business planning.
Some advantages of Delaware Companies are:
- The names of the shareholders are not disclosed;
- Annual state franchise tax is low;
- An individual can hold all corporate offices and be the sole director;
- There is no minimum capital in order to start business;
- Meetings are held anywhere in the world;
- No residency requirements for shareholder and directors;
- Corporations can be established for any lawful act or activity;
- Whether your corporation is actually located in Delaware or not, the purchases in Delaware are not subject to sales tax. There is no state corporate income tax in Delaware on goods or services provided by Delaware corporations operating outside of Delaware. There is no state corporate tax on interest or other investment income in Delaware, when earned by a Delaware holding company.
For more information regarding Delaware Companies please download our Fact Sheet No.27.