Delaware Company Registration: Steps, Advantages & Tax Structure

This article explains the procedure for Delaware company registration. It further discusses the various types of corporations and the advantages of registering a firm in Delaware.

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Delaware Company Registration in 2024

Do you know that approximately 50% of publicly traded companies in the United States are incorporated in Delaware?

This state, with a population of less than a million people, has become the go-to destination for businesses of all sizes looking to incorporate. Over 

delaware company registration

one million corporations are registered in Delaware, a staggering number considering the state’s size. Its unique business environment provides a streamlined and efficient process for forming and maintaining a corporation in Delaware, while also providing significant legal and tax benefits.

Whether you’re just starting a business or looking to expand an existing one, Delaware company registration can provide significant advantages that can help you achieve your goals. 

In this article, we will explore the reasons why so many businesses choose to incorporate in Delaware and the benefits that come with doing so. 

Why incorporate a company in Delaware?

Incorporating a company in Delaware has become increasingly popular over the years, and for good reason. 

Here are some of the key benefits of Delaware company registration:

Limited personal liability

Corporation in Delaware allows shareholders to have limited personal liability. This means that the personal assets of stakeholders are insulated from the losses or any obligations of the company. 

Tax advantages 

Delaware’s tax structure is also highly advantageous for corporations. Delaware has no corporate income tax for firms that work outer of the state. This means that if your business is incorporated in Delaware but operates in another state, you can enjoy significant tax savings.

The fast and efficient incorporation process

Delaware has a well-established and streamlined incorporation process, which makes it easy for businesses to incorporate quickly and efficiently. This can be especially important for startups and entrepreneurs who need to get their businesses up and running as quickly as possible.

Corporate veil protection

Delaware law provides strong protections for the corporate veil, which is the legal separation between the corporation and its shareholders. This means that shareholders cannot be held personally liable for the actions of the corporation, as long as they are not engaging in fraudulent or illegal activities.


Incorporating in Delaware can help lend credibility to your business. Delaware is widely recognized as the corporate capital of the United States, and having a Delaware corporation can help instill confidence in potential investors, partners, and customers.

International recognition

Incorporating in Delaware can help businesses gain international recognition and legitimacy, which can be beneficial for companies that operate globally.

Procedure for Delaware company formation

Select a Business Name

The words “organization,” “business,” “company,” “association,” “foundation,” “fund,” “incorporated,” “institute,” “society,” “union,” “syndicate,” or “limited” must be in your firm’s name. 

It can include a term or acronym from another language with a comparable meaning. 

Your organization’s name cannot be deceptively similar to the names of other businesses that have already been registered with the Delaware Minister of Jurisdiction. The Delaware Secretary of Country’s company name directory may be searched to see if the requirements meet. 

The Delaware Department of Organizations site allows you to register a real identity.

Prepare and file an incorporation certificate

By submitting a Certification of Formation – Corporate Enterprise with the Delaware Secretary of Defense, your organization becomes officially formed. Publications can be submitted electronically or by post, and a Submission Covering Memorandum must be included.

Decide on a Representative

Each Delaware corporation is required to have a Delaware representative for the administration process. It is a company or organization that undertakes to receive court documentation on behalf of the government if it is issued. Before identification, the representative should decide to accept delivery of processes on your company’s behalf.

Make a set of corporate bylaws

Bylaws are a type of internal business agreement that establishes the basic standards for operating your company. They haven’t been registered with the authorities.

Nominate shareholders and call a meeting of the board of directors

The original corporation director must be appointed by the incorporator, the individual who approved the documents, until the first annual shareholders meeting, when the commissioners who will function for the upcoming period are approved by the board.

Stock to be issued

In exchange for their invested capital of money, assets, skills, or all, distribute shares to each investor. Printed ownership certifications are typically issued by young businesses. In the company’s materials requisition register, record each investor’s contact details.

Submit financial statements

All Delaware-based businesses are required to submit a financial statement and submit a licensing fee. The Delaware Department of Companies must collect the taxation and financial statements by March of every year. Each and every year, by the month of June, international companies must file a yearly account. For domestic companies, the annual survey filing charge is $100, including registration charges, which are due when the statement is filed.

Types of Delaware Corporation

types of delaware corporation

Non-Stock Organisation:

  • Non-stock organizations are managed by individuals who choose the executive board rather than by investors.
  • Several businesses might be classified as non-profits by the Internal Revenue Service.
  • Earnings from non-profits must be used for humanitarian causes.
  • Non-profits are limited in their programs in order to preserve a favorable tax status.

Closely held company:

  • Just before LLC, there was an ancient practice to simplify administration and formality.
  • If the company’s documentation of formation removes the Board members, investors may be authorized to govern the company like a management board.

General Corporation:

  • One of the most common Delaware company structures is suitable among most operating small and big firms.
  • It is also known as a C-Corporation, and it is often created when a firm intends to go public or prepares for an offering.
  • This company was founded to get venture capital firms to participate in it. The investors are the firm’s proprietors, but they don’t participate in its management.

Corporation for the public good:

  • In the state of Delaware, this is a modern kind of company.
  • Contribution to the general populace Companies are not required to maximize profits for shareholders and may choose to lower earnings in order to achieve a claimed public good.
  • The public welfare corporation requires to meet obligations concerning environmental and social.
  • The business is founded similarly to a Delaware corporation, with the exception that it must assure that it is functioning in the public interest.

Limited Liability Company (LLC):

  • A Delaware LLC is a type of company entity with an independent legal existence from its proprietors.
  • A Delaware LLC’s owners and managers are not held personally responsible for the financial obligations and liabilities of the business.
  • For tax reasons, it is possible to regard a Delaware LLC as a pass-through organization.

Limited Partnership:

  • An organization called a Limited Partnership is made up of one or more General Partners and one or more Limited Partners.
  • A general partner is in charge of running the business on a day-to-day basis and can be either a person or an entity.
  • A limited partner is a person who is not required to oversee or make company choices and does not participate in corporate operations.

Delaware corporation bylaws

The Delaware corporation bylaws are legally binding official document that governs community meetings, voting, the number of board members, and official positions and responsibilities. It’s standard documentation that’s frequently utilized during the proceedings of the incorporator’s session when the first members are appointed.

The elements that should be addressed in all company’s bylaws are as follows:

  • Directives for officers
  • Voting by Stockholders
  • Director recommendations for modifying regulations in the upcoming
  • How will voting take place
  • Who will be in charge of the company’s equity
  • Session Procedures

Delaware company tax structure & its advantages

delaware company tax structure and its advantages

Incorporating in Delaware can offer many tax advantages for businesses. 

Here are some of the key tax structures for Delaware company registration:

No state corporate income tax: Delaware does not impose a corporate income tax on companies that are formed there but do not conduct business in the state. 

Low franchise tax: Delaware requires corporations to pay an annual franchise tax, but the amount is generally low compared to other states.

Business-friendly tax laws: Delaware possesses a few of the numerous business-friendly tax regulations in the nation. For example, the state does not have a sales tax, and there is no personal property tax on business assets. 

Tax treaties: Delaware has tax treaties with many countries around the world, which can help multinational corporations reduce their tax burden.

Advantages of Delaware company formation

Incorporating a business in Delaware offers several advantages, some of which are:

Favorable Legal Environment

Delaware has a well-developed and business-friendly legal system that provides a predictable and stable environment for companies to operate in.

Business-friendly Tax Environment

Delaware’s tax laws are favorable for businesses, with no state corporate income tax for companies that operate outside the state. There is also no sales tax in Delaware, making it an attractive destination for companies looking to minimize their tax liabilities.

Efficient Corporate Governance

Delaware has a well-established and efficient system of corporate governance, with a streamlined process for forming and registering a corporation. 

Flexible Corporate Structure

Delaware’s corporate law provides companies with a high degree of flexibility in their corporate structure, including the ability to issue different classes of stock and to create a preferred stock with special voting rights or dividend preferences.

Court of Chancery

Delaware has a specialized court system, the Court of Chancery, which has extensive experience in dealing with corporate law issues. The Court of Chancery is known for its expertise in corporate law and its ability to resolve disputes quickly and efficiently.


Delaware is a well-established and respected corporate jurisdiction, with a reputation for being a pro-business state. Many large corporations choose to incorporate in Delaware due to its favorable legal and tax environment.


Delaware is one of the greatest places to form a corporation due to the state’s dependable business regulations, innovative tax savings plan, favorable legal environment, and effective corporate governance. The robust legal framework of the state, the freedom to select the type of business entity, and the availability of a specialized Court of Chancery for a speedy resolution of business conflicts are all benefits of forming a Delaware corporation. Whether you are a startup or an established business, incorporating in Delaware can help you achieve your business goals and expand your operations in the United States.

Consult our specialists at Odint Consulting if you’re looking to register your business in Delaware. Our professionals will aid you in adhering to the legislation and establishing your company in Delaware.


Incorporating in Delaware offers numerous legal and tax benefits, including a well-established legal framework, experienced professionals, efficient filing processes, and tax structures that are favorable for businesses.

Yes, non-US residents and non-US citizens can incorporate a business in Delaware.

Delaware incorporation generally takes only 2-3 days, depending on the complexity of the company. However, the actual time can vary depending on the complexity of the business and the type of entity being formed.

Yes, Delaware corporations are required to pay an annual franchise tax, which varies depending on the size and type of the business.

Your business can be operated in distinct states as well if you incorporate in Delaware.

While it is not required to have a lawyer to incorporate in Delaware, it is recommended to have one to ensure that all legal requirements are met and to guide you through the process. Furthermore, a lawyer can offer valuable advice on corporate administration, obedience, and other lawful cases.