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DELAWARE GUIDE FOR EGYPTIAN START-UPS AND CORPORATIONS
Incorporating your offshore company in Delaware comes with great benefits. The number of startup and offshore company incorporations has increased tremendously in Delaware due to the flexibility that the state provides to company shareholders.
There are certain steps and requirements to ensure the validity of the incorporations process;
- Determining the structure of the business:
Just like any other jurisdiction, you need to begin with choosing the structure that best fits your business and its activities. In Delaware, there are three popular types of company structure:
Doing Business As “DBA”
A business has both “Legal Name” and “True Name” whereas the name of the business may be different from its registered or legal name.
Limited Liability Company “LLC”
- The simplest to establish.
- Flexible and requires minimal maintenance.
- Tax benefits and implications.
- Requires fewer administrative formalities and procedures.
- The liabilities of the members are limited to their investment.
- Does not require a minimum capital.
Corporation
- The ownership of the company is in the form of shareholder stocks.
- Managed by directors who are elected through an annual stockholder meeting.
- Mandatory for certain occupations such as architects, lawyers, doctors, etc.
- Choosing The Business Name:
When choosing the name for your business, you must first make sure that it is not already registered with the Delaware Secretary of State. You can check your proposed company name within Delaware’s business name database. According to Delaware law, the name must include for Company, Corporation, Association, Co., Inc., etc. which can be amended in the future.
- Appoint a Registered Agent:
Delaware corporations are required to have a registered agent in Delaware who can either be an individual or an entity and is authorized to conduct business in the state of Delaware. The list of Registered Agents is on the Delaware Division of Corporations website. The Registered Agent will receive all legal documents on behalf of the company. You may act as your own registered agent if your startup is physically located in Delaware.
- Obtaining Federal EIN:
The Federal Employer Identification Number must be obtained before opening the bank account. The EIN protects the business owner from identity theft, as it acts as a social security number.
- Submitting The Forms:
“Doing Business As”
DBAs paperwork is submitted by the county.
LLC and Corporation:
Forms and certificates are filed with the Delaware Department of State Division of Corporations.
- The Cost of Registration:
The cost to register depends on the structure of the business. For example, In the case of LLC, the filing fee is $90, and a certified copy of the filing is $50. In the case of registering as a corporation, the filing fee depends on the amount of stock you wish to offer which will average $300.
- Ongoing Requirements:
- DBAs need to be renewed every 5 years.
- LLCs are taxed $300 a year and do not file an annual report.
- Corporations must file an annual report and a franchise tax.
Eldib & Co helps companies comply with Deleware compliance requirements with a full suite of services In addition to our global portfolio of services; we provide extra support, tailored to specific local requirements.
Contact us at [email protected] to find out how we can help establish or grow your business.
