Synopsis

Delaware is a small state situate 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:-

 

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Last reviewed: Saturday, July 01, 2006

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