One frequently-cited advantage is that the state's internationally renowned Court of Chancery, deals exclusively with corporate matters. Judges of this Court are appointed on merit alone and not elected.

The corporate laws of Delaware are very user-friendly and have often been used by other states as a standard for testing corporate laws. As a result, the corporate laws in Delaware are familiar to many lawyers both domestically and internationally.

Companies of primary interest to offshore investors are the Corporation and the Limited Liability Company (LLC). LLCs are a hybrid of a Corporation and a Partnership, sharing the same features as a Corporation but may also choose to be taxed as a corporation, partnership or trust.

There is no income state tax for Delaware Corporations or LLCs that do not conduct business in the US. The only tax typically payable is an annual franchise tax which falls due on the 1st of March (Corporation) and 1st June (LLC) each year respectively. The annual franchise tax for a Corporation with the standard minimum share capital is USD35 plus an additional USD25 filing fee for the annual franchise tax report. For a LLC, the franchise tax is USD200.

In situations where no business is conducted in the US and the Shareholders, Directors and Officers are not US citizens, a Delaware Company has the same characteristics as a normal "offshore" company.

Click here to read Delaware Fact Sheet [PDF File]