Top 5 reasons to choose a Delaware domiciled entity

Since the early 1900s, Delaware has been the jurisdiction of choice for the incorporation of businesses, investment vehicles, and special purpose entities (SPVs), looking to establish a presence in the United States. Over the years, Delaware has carefully built and nurtured a business-friendly environment, and its popularity continues to grow. In fact, it is the legal home to 1.5 million businesses, including 68% of the Fortune 500 companies. With a well-established legal framework and a globally recognized reputation for stability, Delaware remains one of the most attractive jurisdictions for incorporating an entity.

Below are the top five reasons why Delaware stands out as an ideal location for U.S.-based entity incorporation and why it should be amongst your preferred jurisdictions.

1. International reputation

Delaware's international reputation as a corporate hub is unmatched. Despite its relatively small geographic size, the state has earned the trust of both domestic and international business communities. More than 1.5 million companies are incorporated in Delaware, making it home to 68% of the Fortune 500. Its legal framework, grounded in the Delaware General Corporation Law (DGCL), is regarded as one of the most advanced and flexible in the world, giving Delaware companies a strong foundation for business operations and expansion.

Moreover, Delaware's long-standing corporate infrastructure means that the state is familiar to investors, lenders, and partners around the globe. Delaware’s legal infrastructure is widely understood, and its laws are well-respected, which reduces the complexity for businesses engaged in cross-border operations. Whether you are seeking to raise capital, looking for tax efficiency, or entering the U.S. market, Delaware provides a stable, trusted platform for growth that provides credibility and a foundation of stability that resonates with stakeholders around the world

2. Robust judicial system

Delaware’s business-friendly reputation is rooted in its judicial system. The state is home to the Court of Chancery, a unique, specialized court with expertise in corporate law. This court is recognized as the nation's preeminent forum for resolving disputes involving corporate governance and the affairs of Delaware corporations. The Court of Chancery’s deep knowledge of business law ensures that cases are handled quickly, efficiently, and with a high level of legal expertise. The court’s ability to issue fast and well-reasoned decisions helps businesses avoid lengthy and unpredictable litigation processes, which can be costly and disruptive. The Court’s consistent rulings have further cemented Delaware’s reputation as a hub for corporate entities, offering both peace of mind and legal certainty to investors and business owners.

3. Dynamic Corporate Law

Delaware’s legal system is one of the key reasons why businesses choose to incorporate here. DGCL is a dynamic and flexible framework that allows companies to structure their governance arrangements in a way that best suits their needs. The DGCL is continuously updated by the Delaware legislature to adapt to changing business needs, ensuring that it remains relevant and competitive in a global marketplace.

This adaptability is critical for businesses operating in rapidly changing industries, where regulatory frameworks must evolve to accommodate new market realities. Companies can tailor their operational structures to support their strategic goals, providing them with flexibility to remain competitive.

4. Advantageous corporate tax and structure

While Delaware may not offer significant state-level tax benefits, its tax structure remains favourable for many businesses, particularly for international investors and cross-border entities. For businesses whose operations are based outside of Delaware, there are generally no state income taxes, property taxes, or value-added taxes. Moreover, Delaware offers highly flexible corporate structures, including limited liability companies and limited partnerships, which allow business owners to reduce their exposure to personal liability. These structures provide a high degree of protection for owners and investors, making Delaware a top choice for entities looking to establish a strong legal shield.

5. Experience, efficiency, and privacy

Delaware’s efficient business setup process is a major advantage for companies looking to establish a presence in the U.S. The state offers same day filing services for new incorporations and has a robust ecosystem of professional service providers with deep expertise in corporate and fund structures. This allows businesses to get up and running quickly without delays, which is crucial for investors who need to move fast in a competitive environment.

In addition to efficiency, Delaware is known for offering a high degree of privacy to business owners. The state does not require corporations to publicly disclose the names of directors or officers in annual filings, which helps protect the privacy of key decision-makers. Delaware also does not mandate that officers, directors, or shareholders reside in the state, providing businesses with added flexibility in their corporate governance and operations.

Why choose Ocorian as your business partner?

At Ocorian, we understand that incorporating a business in Delaware is a strategic decision that requires careful planning and execution. While many service providers may focus on volume, we offer a unique, high-calibre, and white-glove service with a global mindset. Our team of experts provides seamless, tailored solutions for clients across multiple states and jurisdictions, with a deep understanding of the U.S. market. Our U.S. practice, led by our New York office, brings decades of experience in structuring businesses and funds within Delaware and beyond.

We take pride in offering a personalized approach that removes the complexity of establishing and managing U.S. entities, ensuring that our clients enjoy a smooth, stress-free experience. Our global network means that we can work with you to expand your business with ease, handling all the regulatory, legal, and administrative details behind the scenes so you can focus on your core business.

With Ocorian as your partner, you gain access to world-class service, expert knowledge, and the ability to set your business on a path of long-term success in Delaware, a jurisdiction that continues to lead the way in corporate law and governance.

Contact our Delaware team for more information and to get the support you need.

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