Delaware has been a majorly established authority since the early 1990s, with over a million businesses present in Delaware today.
While that’s impressive, it’s all the more surprising that there are so many large companies listed on the stock exchange, given the small state contains nearly 50% of Wall Street listed companies and 63%. companies in the top 500 US companies (classified by the importance of their revenue).
But make no mistake, if this jurisdiction is valued by the largest corporations, it is not because of its idyllic location but because of its tax advantages.
Rest assured that in addition to public companies, Delaware also has many types of limited liability companies. Incorporating a foreign corporation in Delaware is not only open to US corporations but also to the rest of the world. You can take advantage of the tax privileges of a Delaware offshore corporation.
As a result, Delaware attracts corporations from around the world that take advantage of a near-zero tax rate, where their ultimate profits are tax-free. These companies do not do business in Delaware because they are not licensed to practice. In the United States, they only need to have an address that allows them to take advantage of this tax privilege.
Many entrepreneurs see their offshore company registration in Delaware as a benefit from the 0% tax rate, no audit, and no reporting requirements.
WHY IS DELAWARE AWESOME SO MUCH BUSINESS?
Like any tax haven, Delaware attracts entrepreneurs from all over the world, but why do so many people go the route and settle there? However, this jurisdiction is stable and behind the American flag hides a great reputation. Under the guise of this American branch, it has always sought to encourage investment and business in its territory.
As a number of criteria are set, such as simplicity of the constitution at low cost, a guarantee of anonymity, or legislation in force and low tax rates apply to this state.
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Tax
Delaware-registered foreign companies pay no tax or “sales tax” (the equivalent of VAT in France) unless they operate from US facilities.
In addition, a person who owns an interest in a nonresident Delaware foreign corporation will not be subject to any taxes or duties. If a shareholder comes to sell his shares, then he will not pay any tax on the sale of his shares nor will he be subject to inheritance tax.
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The law is very beneficial for companies
The court with jurisdiction over commercial cases is the “Court of Chancery”, a longstanding institution founded in 1792, whose reputation makes it professional.
So you can resolve disputes quickly. Since the United States often relies on precedent for its rulings, needless to say, the “Prime Court” has had time to define and perfect its own. As a result, Delaware’s business law gives companies flexibility in managing their affairs.
Foreign companies seek refuge there because one of the very interesting aspects is making sure they keep their secrets.
In Delaware, beneficiary identification is optional and you can remain anonymous. Indeed, when forming a Delaware corporation abroad, there is no obligation to disclose the names or addresses of the shareholders or directors, such information being kept confidential and not visible on the public register of the part company.
Companies of this state. Therefore, no investigation of tax practices can be successful because there are no people on the org chart.
WHAT CONDITIONS TO ESTABLISH A FOREIGN COMPANY IN DELAWARE?
This low-sulfur jurisdiction over the Bahamas or the Cayman Islands has been identified by the US as hiding their tax haven under the US flag, thus making it invisible to the eyes of the OECD (Organization for Economic Cooperation and Development) has included it in the list of tax havens.
The main growth activities in Delaware among foreign companies are e-commerce, consulting, import and export, registration and exploitation of intellectual property rights, movable and real estate asset management or even business.
If your preferred sector is one of the listed ones, Delaware will welcome you with open arms in the best condition to set up your offshore company in record time with minimal requirements, low cost, and no need to do it.
The most important condition is that the activity takes place outside the borders of the United States and that the managers are non-resident U.S. citizens.
You may be offered different types of companies, but the most recommended is a limited liability company (LLC).
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