Offshore Company Formation in Delaware

Delaware, also known as the First State as it was the first state among 13 states that drafted the Federal Constitution, is situated in the middle of New York City and Washington D.C.

Delaware has the least population in America and the whole population is only one-third of the entire American population. With very convenient access to other major domestic market and foreign markets through the highway, train, air, and sea, Delaware is an ideal location to form your offshore company in. Moreover, it is also the home to half of the companies that are listed on the New York Stock Exchange.

Advantages

The advantages of forming an offshore company in Delaware are:

  • Any national citizen, regardless of the place of residence, can own a Delaware LLC
  • A Delaware LLC can have one member or more than one member
  • In order to not to reveal the owners’ names to the state, nominee members can be used
  • You do not need to report any assets of the company
  • A company in Delaware can be operated and managed from anywhere in the world
  • There is no need to pay any taxes if the business activities and the registered office of the LLC are not within the state
  • Pass-through taxation
  • It is not necessary to visit the Delaware state in order to incorporate an offshore company there
  • A person can be the sole owner of the LLC and hold all and different types of positions
  • You are not required to have a physical address
  • Directors of the LLC can set any price on the shares that they want to sell
  • Delaware is one of the cheapest places in the world with the lowest costs to incorporate an offshore company in
  • Delaware laws make it easy for offshore company to file anonymously
  • The state of Delaware does not request for all members in the LLC to reveal their personal information to the public
  • This personal information will only be revealed during legal proceedings or law enforcement actions
  • Delaware has stable and reliable legal platform
  • A Chancery Court will handle corporate matters and juries won’t be used, hence decisions are made as written opinions and litigations are settled on stable law rather than emotions

 

Delaware LLC or Delaware Corporation

Below are some of the scenarios on when you should choose Delaware LLC over Delaware Corporation:

  • When real estate will be purchased
  • When other passive investments will be purchased
  • When any owner will be a non-resident alien
  • When individuals have concerns in filling up their real names in state records
  • When the LLC will only be used as a branch
  • When the LLC  will only be used for a special purpose

 

Requirements

Below are the requirements that you need to comply with in order to form an offshore company in Delaware:

  • A Delaware LLC needs to have a minimum of one member or manager
  • The member or manager’s name has to be recorded and the records will be made available to the public
  • If you want your name to remain confidential, you can seek for a nominee manager
  • A Delaware LLC has to appoint and maintain a local registered agent that has a registered office in Delaware
  • Non-residents do not need to pay any income tax

 

Required Documents

The required documents to incorporate an offshore company in Delaware are as the following:

  • Certificate of Formation, the important document of the company and it is to be used for legal proceedings
  • The Certification of Formation has to be certified with Apostille
  • Introduction Letter that states the future obligations of the offshore LLC company
  • Letter with Delaware Corporate Registry File number stating the information of the offshore LLC company
  • LLC Agreement that describes the ownership distribution in the offshore LLC company
  • Minutes of the first meeting to illustrate the membership structure in the offshore LLC company
  • Certificate of Membership to reveal the owner of the offshore LLC company
  • Stamp
  • A copy of your passport
  • Provide 2 to 3 chosen names for the offshore company and the name must not include words such as BANK, INSURANCE, LOTTERY, and UNIVERSITY and similarly, your offshore company is not permitted to engage in any business activities related to the 4 industries
  • The contact person’s address, telephone number, and e-mail address
  • Proof of payment to Euro Commerce LLC bank account

 

Annual Expenses

Unless you are a US citizen or a permanent resident in the United States of America, you are not required to pay any taxes except for the annual expenses of the offshore LLC company. The company is required to pay an annual fee of USD 550. The USD 550 is inclusive of charges such as:

  • USD 250 for registered agent address in USA
  • USD 250 for Franchise Tax that is due on every 1st of June
  • USD 50 for Franchise tax form submission

 

Additional Services and Fees

Should you require additional services, below is a list of services along with their fees:

  • Certificate of Formation with apostil – USD 300
  • Certificate of Good Standing with apostil – USD 300
  • Certificate of Incumbency with apostil – USD 300
  • Power of Attorney with apostil – USD 300
  • Special Power of Attorney with apostil – USD 300
  • Change of Registered Agent – USD 300
  • Certificate of Amendment with apostil – USD 300
  • Change of ownership – USD 875
  • Nominee Manager – USD 1200
  • Nominee Manager Agreement with apostille – USD 300

 

Opening a Bank Account

The most simple and convenient to open a bank account in Delaware is to employ a local registered agent to help you. The agents will then ask about your business plan in order to determine which bank is most suitable for you.

 

Required Documents for Opening a Bank Account

The list of required documents to open a bank account are:

  • Articles of Incorporation or Articles of Formation
  • Passport of the authorized person to open a bank account
  • Employer Identification Number (EIN) which you need to get 4 to 6 weeks before you travel to the United States
  • Certificate of Good Standing
  • Banking Resolution
  • Proof of US physical address along with signed office lease document
  • All banks in America require you to be physically present there to open a bank account
  • Other documents that the bank may ask for as they see appropriate because different bank branches may have different requirements