Advantages Because of low incorporation and administration fees, Delaware Corporations are often used for American trading situations Quick incorporation procedures Readily understandable corporate law Disadvantages Can be difficult to prove ownership but Directors can be named in Articles of Incorporation Company Status Standard US Corporation with Limited Liability Corporate legislation source General Corporation Law of Delaware Company name Prior name approval required The name must contain a corporate ending word such as "Company", "Incorporated", "Corporation", "Limited", "Association", "Club", or an abbreviation of such words The words "bank", "trust", "insurance", "university" and "college" require approval from appropriate regulatory agency. "Finance" and "fiduciary" are subject to additional approvals Time taken to incorporate 24 hours Are shelf companies available? Yes ? but more expensive Usual minimum capital 1500 authorised shares of no par value, however, no minimum amount of capital required Capital Duty See Annual Franchise Tax payable Minimum number of shareholders One Are bearer shares / shares of no par value possible? No / Yes Directors: minimum number / corporate directors allowed / location One / No / No restriction Secretary: mandatory / corporate secretary allowed / location Yes / No / No restriction Is there a requirement for a Registered Office / Registered Agent? Yes / Yes Is any information required by the authorities prior to incorporation or prior to tax status being granted? No What information is available on the public file? Name of the Company and any changes thereof, incorporation number, date of incorporation, registered office address, registered agent's detail Principal activities of the Company, Director's details, issued capital may be voluntarily disclosed What documents must he kept at the Registered Office? None Corporate books & seal Can be kept anywhere. No stipulation Are accounts required / filed? No / No Is an annual return required? No - only the Annual Franchise Tax Report Where are meetings to be held? Can be held anywhere. No stipulation Annual fees payable to the government: Tax / Annual Return Filing Fee Annual Franchise Tax due in March - a minimum (with filing fee) US$50.00 - increases depending on the number of shares authorised or the value of the Company's assets Are there any exchange controls? United States Law requires that anyone taking more than US$ 10,000 into or out of the US must report this fact to the US customs authorities Double tax treaties The USA has numerous treaties