How to Register a Company in Delaware?


Delaware is one of the top jurisdictions to incorporate a company in the United States. The state is known for its business-friendly environment and strong legal system, which is a pioneer in corporate judgments.


Aside from this, you also get access to the strong reputation of the United States, which enables you to grow effortlessly. 


Are you looking to incorporate in Delaware? Read on to learn more. 

Essential Characteristics of a Delaware Company

Delaware LLC is the most popular structure in the state, especially for non-residents. Here are numerous features of a Delaware LLC that make it attractive. Take a look: 


  1. Operational flexibility (can trade internationally)

  2. Tax Benefits 

  3. 100% foreign ownership

  4. Pass-through taxation

  5. Limited liability of members 

  6. No minimum capital requirements 


Benefits of Delaware Business Registration

Company formation in Delaware is a sound decision that opens up a gateway to trade internationally with the sound backing of the US’s reputation. Below are a few reasons why you must choose Delaware to set up your firm: 

Delaware’s Court of Chancery

This is one of the top benefits of registering a company in Delaware. It is a specialized, non-jury court that focuses exclusively on corporate and business law. Moreover, the judges are experts in business-related legal matters, and proceedings are generally faster, more predictable, and more efficient than in other U.S. jurisdictions.

Established Case Laws

Delaware’s Court of Chancery was established in 1792, with centuries-old case judgments available for reference. The established case laws create a high level of legal certainty, meaning you and your lawyers can often predict how a court might rule on a dispute before it even happens.


Investor’s Top Preference

Having a headquarters of your company in Delaware enhances the reputation, as the United States is a global business hub. Banks and angel investors prefer giving loans or investing in firms incorporated in reputable jurisdictions. 

Favorable Tax Regime

The tax regime is especially favorable for Delaware firms with only foreign-sourced income. Firms with only international income are typically exempt from local corporate income taxes, capital gains tax, or withholding tax. However, the firm may still have to pay the annual franchise tax. On top of that, there can be certain federal-level tax obligations as well. 

Simple Incorporation Process

The process to set up a company in Delaware is seamless. It is mandatory to appoint a Delaware-registered agent who acts as the firm’s legal point of contact with the authorities. Moreover, the agent also helps you draft all the relevant documents. 

Global Credibility

Delaware's reputation as the corporate capital of the world acts as a signal of legitimacy. Having a Delaware entity can provide a reputational boost when dealing with banks, partners, and clients who recognize the prestige and stability of the jurisdiction.


How to Start a Company in Delaware? 

To start a company in Delaware, one has to go through the following steps:

Appoint a Registered Agent

The first step is to select a Delaware resident agent who will take care of all your formalities on your behalf. It is mandatory to appoint an agent in Delaware to begin company formation in the state. 

Choose a Name

Select a unique name for your LLC that includes "Limited Liability Company," "LLC," or "L.L.C." You can check name availability through the Delaware Division of Corporations website.

File the Certificate of Formation 

To officially create your LLC, you must file a Certificate of Formation with the Delaware Division of Corporations. The document only needs to include your LLC’s name and the name and address of your registered agent. 


Handle Internal Documentation 

Once the state approves your filing, you should draft an operating agreement. While not filed with the state, this internal document is critical for outlining the management structure, profit-sharing, and member responsibilities.

Secure an EIN

Apply for an Employer Identification Number (EIN) from the IRS. This is your company's federal tax ID, necessary for opening bank accounts and managing taxes.

Open a Business Bank Account  

When opening an account, banks will typically require your approved Certificate of Formation, your EIN, and potentially internal documents like your Operating Agreement or KYC/AML information. Your registered agent will assist you with opening a bank account. 

How Can Business Setup Worldwide (BSW) Help?

We are a leading consulting firm that helps clients with company incorporation to setting up a bank account. Aside from this, we also assist with other business-related services such as accounting and bookkeeping, tax compliance, and more. You can contact us to begin offshore company formation.

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