The principal forms of business organization in the State of Delaware are:
A Corporation is a legal entity separate from its founders. Shareholders are not personally liable for the debts and obligations of the Corporation.
Corporations are usually more appealing to investors due to their clear ownership and governance structure, as well as simple share transfer procedures.
Corporations pay Delaware corporate income tax at the rate of just 8,7%. Corporations whose activities in Delaware are limited to maintaining the company and managing intangible investments are exempt from this tax.
A Corporation is owned by its shareholders.
Shareholders can be both individuals and legal entities.
There are no residency requirements.
The minimum number is 1.
If a Corporation has more than one shareholder, it is recommended to make a Shareholders Agreement which would reflect the powers and rights of the shareholders, as well as their relationship with the Corporation and the directors.
Shareholders appoint directors to manage a Corporation.
Directors can be either individuals (a shareholder or a third-party employee) or legal entities.
There are no residency requirements.
The minimum number is 1.
There is no restriction on the minimum share capital.
Corporations are divided into two types depending on their tax regime:
А standard form of a corporation that is set up by default. The corporate income tax rate is 8,7%. The main drawback of a C-Corp is double taxation (a company is taxed on its profits, and then the shareholders pay personal income tax on the dividends distributed to them).
it applies pass-through taxation; profits are taxed only once at the shareholders' personal income tax rate. Corporations of this type are subject to a number of restrictions, such as they cannot have more than 100 shareholders.
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Services
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Fees (USD)
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Total cost of incorporating a Corporation (including preparation and provision of the company’s original constitutive documents and an apostilled copy of such documents, share issue documents, but not including Compliance fee)
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2 190
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Subsequent annual maintenance (starting from the second year), including provision of registered office, but not including Compliance fee
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1 800
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Drafting non-standard articles (by-laws)
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from 1 600
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Drafting a Shareholders Agreement
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from 2 000
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Tax registration
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610
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Preparing financial statements and audit
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The cost of audit will depend on the company’s activities, volume of operations performed by the company, i.e. on the time spent by the auditor on handling the documents.
Charged at a rate of USD 200 – 400 / hour (depends on the qualification of a specialist involved) |
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Assistance with opening a local bank account**
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2 500
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Compliance fee
Payable in the cases of: - incorporation of a company, - renewal of a company, - liquidation of a company, - transfer out of a company, - issue of a power of attorney to a new attorney, - change of director / shareholder / beneficial owner, except the change to a nominee director / shareholder, - signing of documents. |
350 (standard rate, includes the check of 1 individual),
+ 150 for each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL, + 200 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL, 450 (rate for high-risk companies, includes the check of 1 individual), 100 (signing of documents). |
*The fees are valid as of January 2025.
**Subject to certain conditions. Please contact your consultant for details.