| LLC | C-Corp | LLP | Free Zone Company | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|
| Company Setup time | 5 days | 10 days | 5 days | 5 days | 5 days | 5 days |
| Bank Account Opening | 5 days | 5 days | 5 days | 5 days | 5 days | 5 days |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | No | Yes | Yes | No | No | No |
| Legal Liability | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Summary
| LLC | C-Corp | LLP | Free Zone Company | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|
| Minimum Shareholders | 1 | 1 | 1 | 1 | Parent | Parent |
| Corporate Shareholders Allowed | Yes | Yes | Yes | Yes | Yes | Yes |
| Individual Shareholders Allowed | Yes | Yes | Yes | Yes | No | No |
| 100% foreign ownership | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum share capital | $0 | $1 | $1 | $1 | None | None |
| Resident director required | No | No | No | No | No | No |
| Minimum number of directors/managers | 1 | 1 | 1 | 1 | 1 | 1 |
| Corporate director(s) allowed | No | No | No | No | No | No |
| Delaware corporate tax | 0% | 0% | 0% | 0% | 0% | 0% |
| Federal corporate tax | 0% | 0% | 0% | 0% | 0% | 0% |
| Withholding tax rate | 35% | 0% | 35% | 35% | 35% | 35% |
| VAT payable on sales to local Delaware customers? | No | No | No | No | No | No |
| Annual tax return to be submitted? | Yes | Yes | Yes | Yes | Yes | Yes |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
| LLC | C-Corp | LLP | Free Zone Company | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|
| Allowed to invoice local clients | Yes | Yes | Yes | Yes | Yes | No |
| How soon can clients be invoiced | 5 days | 10 days | 5 days | 5 days | 5 days | n/a |
| Allowed to sign contracts with local entities | Yes | Yes | Yes | Yes | Yes | No |
| How soon to hire staff | 5 days | 5 days | 5 days | 5 days | 5 days | 5 days |
| Allowed to import and export goods | Yes | Yes | Yes | Yes | Yes | Yes |
| Can rent an office in Delaware | Yes | Yes | Yes | Yes | Yes | Yes |
| How soon can sign a lease agreement | 5 days | 10 days | 5 days | 5 days | 5 days | 5 days |
| How long to supply corporate bank account numbers | 3 weeks | 4 weeks | 3 weeks | 3 weeks | 3 weeks | 3 weeks |
| How long to supply company registration \ tax numbers? | 1 week | 2 week | 1 week | 1 week | 1 week | 1 week |
| Government approval required for foreign owners? | No | No | No | No | No | No |
| Required director/partner/manager/ legal representative | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Limited Liability Company (LLC)
- In Delaware, an LLC may be incorporated with at least one director and one shareholder. The directors or shareholders are not required to be US citizens to incorporate an LLC. Additionally, there is no limit for share capital.
- A Delaware LLC has the choice to be treated for tax either as a corporation (if one or more shareholder), or a partnership (if two or more shareholders), or a disregarded entity (if only one shareholder). If the LLC is treated as a partnership or as a disregarded entity, no income tax will be levied on it. Rather, the personal income of the shareholders received from that entity will be taxed. Otherwise, the LLC is treated as a corporation and is liable to pay corporate tax.
- In Delaware, the information of directors and shareholders is not disclosed to the general public. An LLC is commonly used to start small and medium sized business in the US.
C-Corporation (C-Corp)
- A C-Corp may be registered or listed with one director and one shareholder of US or international citizenship, and must have a minimum share capital of USD 1. In addition, a company in Delaware has the same privilege of confidentiality as the LLC.
- A Delaware corporation is not required to have a local director or a physical address for incorporation.
- A C-Corp is recommended when a company plans to raise funds from the general public. A C-Corp is not required to be listed on the US stock market.
Branch Office
- Foreign LLCs and corporations are permitted to establish and incorporate branches in Delaware. The branch office must have a registered representative or an agent and a registered address in Delaware.
- A branch office is permitted to conduct all activities and operations as its holding company (LLC or Corporation). In addition, the branch office is required to pay Delaware franchise taxes on an annual basis.
Limited Liability Partnership (LLP)
- As a substitute for the LLC, our customers can incorporate an LLP. These entities must have a minimum of one member and one manager, who cannot be necessarily US local or resident.
- An LLP is treated as an LLC regarding its taxation matter i.e. no tax shall be levied on the percentage of income distributed to every member.
- An LLP is utilized widely to offer professional services and consultations. For example – Accounting Firms, Law Firms.
Free Zone company
- It is also possible to incorporate a company in Delaware’s Wilmington Free Zone.
- A free zone company is recommended when there is an interest in setting up an export centered production business.
Trust
- Delaware is a high-profile destination for customers intending to start a trust to save taxes and protect assets.
- As per Delaware trust law, it is compulsory for a at least 1 trustee to live in or have a place of business in Delaware.
- The advantages of setting up a personal trust in Delaware is that it may be shifted into a registered investment company.