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.
Protection of Nominee Directors from IRD claims for Cyprus client companies
Legislation re Cyprus Tax Residency:
Cyprus Company Law: Responsibility of Directors for the non-payment of taxes
A Company Director, in a company incorporated under the laws of the Republic of Cyprus, may be found liable by the Inland Revenue or Customs & Excise with regarding tax related issues. As per the legislation, the Inland Revenue or Customs & Excise may personally prosecute the Company Directors who are involved in any taxation offence(s) or related financial matters.
Inward re-domiciliation: changes to the Singapore Companies Act allowing foreign firms to re-domicile to Singapore
In order to ensure that the regulatory regime of Singapore continues to be robust, relevant and in line with international norms, on the 30th of March 2017, the Companies (Amendment) Act 2017 of Singapore was gazetted. Among the number of amendments to the Companies Act, the provisions for the inward re-domiliation regime are arguably the most important in further boosting Singapore’s character as a business hub.
Inward re-domiciliation: Key changes to the Singapore Companies Act make company relocation to Singapore easier than ever
Last March, the Singapore Government amended the Singapore Companies Act 2017 which introduced an inward re-domicile (or relocation) regime in an effort to boost Singapore’s attractiveness as a business hub.
Cryptocurrencies: technical and legal overview
In this article, we will try to succinctly describe the technical and legal characteristics of Cryptocurrencies. The understanding of Cryptocurrencies is crucial for today’s modern payment services and investment opportunities around the world. We have seen the increasing importance that this topic has acquired in the last few months and the rise of the price of the most popular type of Cryptocurrency, the Bitcoin, from $0.06 cents of a dollar in 2010 to $5,518.85 by the 25th of October, 2017.
The Belize IBC Amendment Act 2017: 3 notable changes for businesses
Belize has amended its International Business Companies Act. These changes were to maintain its financial services industry in the increasingly regulated international market & meet the OECD white list requirements.
Cryptocurrency & ICOs as securities & virtual commodities as per Hong Kong law
The Hong Kong Securities and Futures Commission has remarked upon the growth and popularity of Initial Coin Offerings (ICOs) for raising money not only in Hong Kong but other Asian countries. This article confirms and explains how digital tokens that are offered or sold may be defined as "securities" and as such are therefore governed by the relevant securities legislation of Hong Kong.
New licensing regulations for Trusts & Service Providers in Hong Kong
As per new regulations, all Hong Kong businesses providing Trustee Services, including Corporate Service Providers will not be able to operate without a valid trading license after March the 1st 2018. The new scheme is designed to better regulate individuals carrying out services within the financial sphere in Hong Kong and will be overseen and administered by the Hong Kong Companies Registry.