Offshore Company State of Delaware
(1) Geographic Location
State of Delaware is located on the east coast of the United States, right between New York and Washington. It is around 30 minutes to Philadelphia by driving and sized 2,396 square miles. State of Delaware is the second smallest state in the United States after State of Rhode Island and Providence Plantations. Its total population is 740,000, making it in the 45th place among all states of
Known as Corporation Capital of the World, State of Delaware is proud of itself for being the first state that had approved Constitution of the United States. This is reason that it marks “The First State” in all types of non-official documents.
The State’s principal industries include the automotive manufacturing, chemical and financial industries; its main agricultural products are soybeans, corns and dairy products.
(3) Tax System
State of Delaware has no sales tax, personal property tax, stock tax and intangible property tax. Companies without substantial transactions in State of Delaware do not need to pay for income tax; people who are not residents of State of Delaware do not need to pay tax for their stocks. However, as the United States has adopted both of the “worldwide tax system” and “territorial system”, the state is not tax-free region like British Virgin Islands and Cayman Islands. Therefore, before establishing a company, it is a must to confirm shareholders’ / directors’ identities and the new company’s operational guidelines and objectives to avoid being imposed with a high tax by the competent authority.
2. Conditions and Advantages of Establishment
- Scope of Applications International holdings companies. International Trade. INVESTMENT IN MAINLAND CHINA
- Registered Capital Generally1,500 NPV (no-par value stock)
- Shareholders 1 (may be a natural person or juridical person)
- Directors 1 (must be a natural person)
- Secretaries Not required
- Stock Issues Registered
- Company Information The company information shall be archived by registered agent instead of the government.
Financial institutions shall provide the government with the banking account information to facilitate its investigation of overseas tax evasion.
- Annual Report Not required
- Annual Report and Statement Declaration Annual tax declaration form shall be submitted by registered agent when submitting the annual fee.
- Tax Burden Not tax free. The tax rate varies from state to state.
Identical with local general company. All business activities conducted within the territory shall be supported by certificate and financial statements, which shall be audited by local CPAs and submitted to the State Government and Federal Government for declaration.
- Whether to mark its Chinese name. No
- Working days required to set up the company. Self-named company: 21 to 30 working days.
Note: State of Delaware has stipulated tax exemption provisions (http://corp.delaware.gov/exemptcorp.shtml
).The qualified companies are exempt from state tax and federal tax, and only need to pay for the franchise tax every year (that is, the annual government expense).