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Why Indian people form their companies in Delaware?

Delaware proves as the most accessible state in the USA in which Indian people want to incorporate their companies (especially IT start-ups). The leading & dynamic approach of this sate in promising companies to get included in it, combined with the fact that every law can complete at a reasonable cost, is making more & more Indian businesses register themselves there and then extend their businesses around the USA.

When compared to other states (for example New York, California, Nevada, Wyoming), Delaware incorporation is indeed beneficial & much more accessible for businesses. Throughout the entire post, we will discuss why Indian people form their companies in Delaware.

Note: “Delaware incorporation is an outlier in the process it performs business – what it comes up with huge opportunity to game the business approach and perform it lawfully” – (According to David Brunori, tax expert & professor of George Washington University Law School; New York Times).

Why Indian people choose Delaware?

There are so many big companies or businesses (from the bank of America to Coca-Cola, Google, etc) want to incorporate in Delaware with a population of only 971,180 (as of 2018). Nowadays a significant number of Indian companies also choose Delaware.

Why? Well, from the early 1900s Delaware was the attractive state for businesses due to their laws, tax system and friendly policies. This is why both the US and non-US company choose Delaware for business formation. Let’s discuss some special concerns that attract most of the Indian people to incorporate there.

  1. Business-friendly attitude:

Delaware is known as the incorporating capital around the world. In the USA while other states impose tight regulations for business formation, Delaware shows a business-friendly attitude that makes it standalone.

Most of the Indian companies take the chance of its business-friendly attitude (such as flexible laws, easy tax law, Court of Chancery, etc). This is why they choose Delaware comparing the other states in the USA without thinking more which will save the time engaged in getting incorporated.

Note: “There are more than ninety-five percent (95%) of the Fortune 500 businesses are registered in Delaware due to the friendly approach to businesses” – According to the speech of Khozema Anajwalla (country director, assurance services, Grant Thornton India Pvt Ltd).

  1. Budget-friendly attitude:

Another most significant reason why Indian people incorporate their companies in Delaware, USA is the budget-friendly attitude. You can do everything in Delaware at a cost. Besides, you can register your business entity within two hours in Delaware which will save your time as well.

Note: In Delaware, the main document needed to make an LLC is the Certificate of Formation. The cost for submitting this form to the state is USD 90, also an extra USD 50 to complete the application process within 24 hours. 

  1. Delaware offers privacy:

This is an excellent policy that attracts most business owners to think about a company in Delaware. You don’t need to reveal director or officer names on the business deed. This provides a layer of privacy which is why most Indian forms their company there.

  1. Delaware offers a lot of flexibility:

Delaware gives lots of flexibility to the non-US citizen when it comes to incorporate a business. The corporate laws are very flexible regarding how you can from your company & board members. For instance directors, officers, shareholders do not need to be residents of Delaware.

Delaware approves a single person to be the only officer, director, and shareholder of a company. You may need at least three people to hold the director & officer positions in different states.

Conclusion:

Without a doubt, Delaware incorporation carries lots of benefits to the Indian people when it comes to forming companies in Delaware. Thus Indian companies can spread business in the rest of US as well. If you want to learn more about Delaware incorporation, you can visit this link delawarefile.com.

 

 

 

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