The Comprehensive Guide to Incorporating Delaware Company (2023 Updated)

Since the early 1990s, Delaware has been a major jurisdiction for business creation, with over a million enterprises operating on its property today. While it is astounding, it is even more unexpected to see so many significant corporations registered on the stock exchange, since this tiny state has roughly 50% of Wall Street listed companies and 63% of public companies. businesses among the top 500 US corporations (ranked by revenue importance).

But make no mistake: if this territory is treasured by the world's top corporations, it is not for its picturesque setting, but for its tax benefits. Rest assured that, in addition to publicly traded firms, Delaware offers a plethora of limited liability companies. Incorporating a local firm in Delaware is available to residents from all over the world, not only Americans. Anyone may benefit from the tax advantages of a Delaware offshore corporation.

As a result, Delaware draws businesses from all over the world that want to take advantage of its near-zero tax rates and tax-free ultimate earnings. These businesses do not do business in Delaware because they are not permitted to do so in the United States; they just have an address that permits them to take advantage of this tax break. Many businesses regard their Delaware offshore company registration as an advantage because of the 0% tax rate, no audit, and no reporting obligations.

1. Benefits of incorporating in Delaware:

Efficient legal system

Instead of a regular trial system, corporate cases in Delaware are settled by the Court of Chancery, a court comprised of judges who specialize in corporate law. As a result, Delaware has well-established and reliable judicial precedents that may assist corporations. While the normal civil litigation might take years to settle, Delaware's employment of judges rather than juries and prioritizing of corporate-related issues means that similar cases can be handled more swiftly.

Simple procedure

Filings are processed as fast as possible. Because Delaware is devoted to being corporation-friendly, your file will be processed the same day. You can have a leaner business structure. The fact that Delaware law enables just one individual to serve as an officer, director, and shareholder is appealing to small enterprises.

Tax incentives

Delaware isn't a tax haven. However, the state has a favorable tax policy for both domestic and international firms. Here are a few reasons why overseas investors chose Delaware as their preferred site for their US operations:

  • Delaware does not levy a company tax on revenue earned outside the country.
  • There is also no corporate tax on some Delaware parent businesses' interest, royalties, and other comparable investment income.
  • A Delaware incorporated corporation that does not conduct business in the state pays no income tax or sales tax
  • Intangible assets such as trademarks and patents are not taxed in Delaware. Business entities that register to do business in Delaware, on the other hand, are required to pay Delaware's yearly franchise tax/tax to the Secretary of State of Delaware on an annual basis.


Another significant advantage of forming a corporation in Delaware is the high level of secrecy. Delaware limited liability businesses and corporations, in particular, can provide a high level of security. Identifying information about the company's management and members (for Delaware LLCs) and directors/officers (for Delaware corporations) is typically kept confidential.

Furthermore, except in corporate operating agreements, Delaware LLCs are not obligated to reveal the names and addresses of its members in their records. In order to comply with the yearly franchise tax finalization, Delaware corporations may be required to declare the names and addresses of the company's directors and one officer. Because such information is difficult to uncover on incorporation documents or public records, a company incorporated in Delaware is afforded greater protection than companies formed in other US states.

2. Types of company in Delaware:

The principal forms of business organization in Delaware are: 

You can check it here

However, C corporation and LLC a.k.a limited liability companies are the most prevalent and friendly forms of company for foreigners to establish in Delaware.

3. Requirements to form Delaware business companies:

Company member 1 - 100 shareholders 1 member

No state tax on profit

Subject to franchise tax

Subject to federal tax if engage in any business activity with US entity

Fixed annual state tax 

No state tax on profit

Pass-through federal tax

TIN registration Required Required
Annual report filing Must filing No annual report filing
Annual tax return Subject to federal tax if engage in any business activity with US entity Subject to federal tax if engage in any business activity with US entity
Confidentiality No public information No public information

4. Services after incorporation:

Bank account opening

In order to meet compliance, you need to open a bank account. Based on your business entity, business industry, business type,etc , we will help you to choose the best types of bank and brand. For later steps, we will guide you in detail as the procedures are different based on different banks.


Businesses’ stable development requires proper cash flow management without violating the government’s laws and regulations. Therefore, our team will accompany you with a professional bookkeeping service to maintain financial data accuracy.

The advantages when outsourcing a specialized team of compliance services: Provide a cost-effective solution for businesses that save more time & resources than manual bookkeeping work. And you should engage in bookkeeping to keep financial records ready for year end returns requirements.

5. How Much Does It Cost to Incorporate a Delaware Company?

In Delaware, forming a business necessitates a plethora of sophisticated documentation and processes. It is also worth noting that foreigners are required by Delaware Company Law to engage the services of a licensed corporate service provider. CONTACT G.O.C RIGHT NOW to receive the greatest offer and save time. 

Disclaimer: This guide serves as a reference tool and should not substitute legal advice. For tailored guidance, consult G.O.C's customer services.

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