General Information

Delaware is a small state situated on the East Coast of the United States of America, often referred to as the “Gateway to the United States”.

Marked by few regulations and a lack of bureaucracy in arranging its affairs, and with the Delaware Corporation Law being considered throughout the US among the most attractive for organisation purposes, it is a valuable jurisdiction in which to organise new companies.

The policy of Delaware courts has always been to construe the Corporation Law liberally, to interpret any ambiguities or uncertainties in the working of the Statutes so as to reach a reasonable and fair construction. This causes the careful investor to have confidence in the security of the investment.

Corporations not having any business in Delaware pay no Delaware Corporate income tax. Franchise tax compares favourably with other states and is payable on the authorised share capital of a company at a rate of 1%. It should be noted however that Delaware corporations do fall within the Federal Tax System.

The Delaware Company

A Delaware corporation has the following characteristics:


This is covered above, but it should also be noted that shares owned by non-residents are free from all taxes, including State Inheritance Taxes.


A minimum of one shareholder is required and bearer shares are not permitted.


A minimum of one director is required and there is no restriction on his nationality. The offices of President, Vice-President and Treasurer may be vested in the sole director.

Annual Reporting

A franchise tax report must be completed each year showing details of the officers of the corporation. However accounts need not be filed.


Incorporation can be achieved within 24 hours. However it does take approximately one week for documents to arrive from Delaware. You can have your documents delivered in 10 to 15 days.

Company Name

The Registrar has the power to refuse registration of any name which he considers undesirable or too similar to an existing company. A name will not be allowed if it is misleading – for example, if it suggests that a company with small resources is trading on a great scale or over a wide field. Names cannot ordinarily be allowed if they suggest connection with the Crown or Government Departments.

Restrictions on Name and Activity

Corporation names must end with one of the following words, or abbreviations thereof – Association, Company, Corporation, Club, Foundation, Fund, Incorporated, Institute, Society, Union, Syndicate or Limited.

The following words, and associated activities, cannot be used : bank, trust, university, college or school.