American British Business 2006/7

ABB 2006/7 | State Profiles | North Atlantic region | Delaware

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Delaware

Delaware, located on the eastern seaboard of the US, is bordered by the Atlantic Ocean and the Delaware Bay, as well as by the states of New Jersey, Pennsylvania, and Maryland. With a land area of 1,982 sq miles, Delaware ranks 49th in area among the 50 states. Its location affords easy access to the major metropolitan areas of the Northeast, with both New York and Washington, DC just an hour and a half away.

Pro-business Delaware

More than 600,000 business entities have their legal home in Delaware, including more than 50% of all US publicly-traded companies and 58% of Fortune 500 businesses. Companies choose Delaware because it provides a complete package of business and incorporation services, including modern and flexible corporate laws, a highly-respected judiciary, and a business-friendly state government.

Delaware is world-renowned for its unparalleled legal system. For more than 200 years, the Court of Chancery has remained the pre-eminent forum for corporate disputes in the nation. The new Headquarters Management Corporation legislation, the Court of Chancery and Delaware’s Technology Court reaffirm Delaware’s strong position as the corporate leader and the ideal place for business.

International business in Delaware

The Delaware Economic Development Office (DEDO) promotes international investments in Delaware. In its recruitment activities, DEDO staff identify expanding businesses, meet regularly with individuals from international firms and initiate contacts with businesses who seek to locate in Delaware. Its strategic location permits easy access to the US marketplace, the largest in the world. International business can easily incorporate in the state of Delaware through the Department of State, Division of Corporations.

According to the Federal Department of Commerce, the average percentage of workers in foreign-owned companies in Delaware is 15% (the national average is 11%). International companies continue to show their confidence in the State of Delaware with more than $150m in Foreign Direct Investment committed to Delaware over the past three years.

Tax advantages in Delaware

Delaware has adopted a clear, bipartisan policy to attract new business and encourage the expansion of existing operations. Key tax features include:

No state or local general sales tax
No personal property or inventory taxes
Corporate income tax credits and reduction of gross receipts taxes for new and expanded businesses
Property tax relief for new construction and improvements of existing property
The exemption of certain investment and holding companies from corporate income tax
Two approved foreign trade zones will allow the deferment of import taxes
Public Utility Tax rebates of 50% on increased consumption for qualifying industries
Accelerated experience ratings for new employers

Education/training

Delaware offers a wide array of education and training institutions. The Delaware Economic Development Office utilises the full range of these institutions to provide employment and training services to new and expanding businesses.

For more information, contact: Delaware Economic
Development Office
99 Kings Highway
Dover, DE 19901-7305
Tel: +1 302 739 4271
Website: www.state.de.us/dedo

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