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.
Crypto-currency Start-ups Buying False Reviews is Destablising Reputable Investment Sources
When cryptocurrency issuers want reviews for their coins, reports have surfaced that several prominent companies have been found offering money to advertisers in exchange for positive appraisals.
Is the Era of Shell Companies Coming to an End?
The Honourable Dr. Orlando Smith, Premier and Minister of Finance has announced that the BVI Government will take all reasonable steps to address European Union concerns about economic substance and a new Legislation is intended to be in force by the end of December 2018 in order to avoid the European Union Black List of Tax Heaven Jurisdictions.
Regulatory Update: BVI Economic Substance Act 2018
In 2016, the Council of the EU pledged to start advocating tax transparency and fairer taxation within Europe and consequently worldwide. After the EUs Code of Conduct Group (COCG) on taxation investigated BVI practices, they found a number of concerns regarding legitimate substance requirements for companies and limited partnerships doing business in and through BVI.
Information on the Payment of Cyprus Taxes for Pensions & Rental Income
Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.
Cyprus Regulatory Update: Shell Company Definition & Exceptions
The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:
Singapore Variable Capital Company VCC: New Features & Benefits
The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.
Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements
As per Hong Kong company’s ordinance subdivision 3 section 379 subsection 1, a Company Director will have to prepare year-end financial accounts that comply with sections 380 and 383.
Challenges of Our Time: Cryptocurrencies & Their Regulation
The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.