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Summary

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
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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
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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
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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.

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