Procedure of company registration
Delaware is an easy and reliable state in the USA in which to incorporate or form a number of different legal entities, including Corporation-C/ Corporation-S) however setting up a Limited Liability Company (LLC) is the most popular option. An LLC is an entity that is owned by members, operated by managers and run by an operating agreement.
An LLC offers the benefits and flexibility of ownership as a partnership, while at the same time offering the limited liability and asset protection of a corporation. In addition to this limited liability protection, there are also substantial tax benefits to be garnered from the formation of an LLC.
The profits or losses of the business organisation pass directly through to the Member's personal income tax return “pass through taxation”, with no taxation at the LLC level. The net profit of the LLC is not considered to be income earned by the Members and therefore is not subject to self-employment tax.
The summary below provides an overview of the process and the documents required to form a Delaware LLC:
We need the following supporting documents to incorporate a company:
BO(s), Director(s) & Shareholder(s) each must submit:
- A scanned copy of the passport (with a current & clear photo).
- Identity Document Verification (one more additional document, for example: ID card or driver's license).
- Two different types of proof of address: a. Primary proof of address, or a “Consumption bill” (water, electricity, natural gas, internet or fixed telephone landline). b. Second proof of address can be as above, or a credit card or bank statement. (No older than 3 months old).
- Signed Curriculum vitae.
Please note that all KYC documents must be notarised, if utility bill is in a language other than English, then it must be translated. If you have any problems obtaining the notarised documents, we can assist.Contact us here.
- At least one Director, one Shareholder and one officer is required.
- Residency for Directors is not required.
- Directors are not required to be listed in the articles of incorporation.
- Annual franchise tax.
- The approximate timescale for company formation is 2 days.
- An additional 12 – 14 days may be required to receive original corporate documents from US.
Can you help me open a bank account to form an LLC?
Eltoma offers incorporation and formation filing services, registered agent services, qualification services, and many others. However, we do not physically assist with the opening of bank accounts for customers.
If you locate a bank, we can work with you to help you obtain any additional documents required. If you need a referral for a specific bank in Delaware, we can also provide referrals, but you will need to complete the application process. We will not act as an intermediary because of federal “know your customer” banking laws.
Are Delaware LLCs able to do business in other states?
Yes. You are allowed to operate a Delaware LLC for any legal business in every state in the USA. Under the US Constitution, your Delaware LLC is viewed as a “person” and other states cannot discriminate against this person based on where he/she/it was born or incorporated. This is protected under the full faith and credit clauses, equal protection clause, and substantive due process clause. Additionally, if your company has a physical place of business, employees, assets, or licensing pertaining to another state, then the state where you operate and have significant contacts may require you register there with a certificate of authority, letting the headquarters and principal activity states know you are doing significant business there. This registration does not change the incorporation state, it is only a registry of foreign or out-of-state companies, in case someone needs to sue your company in its principal place of business.
Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register
Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.
European Commission publishes tax avoidance disclosure directive
The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.