Delaware corporations are corporations that have their charter in the state of Delaware. Delaware has long been known to be a corporate-friendly state, and its long tradition of successfully applying corporate law allows it to score over rival states even though other states too are sometimes as corporate-friendly as Delaware, if not more. It is also widely acknowledged that the Delaware General Corporation Law is the nation's most flexible and developed corporation act. Together with this, the fact that these acts and corporate laws are periodically revised and updated makes it easier for companies to do business in Delaware. The business-like attitude and customer-friendliness that characterize the government offices that handle corporations in Delaware are additional factors that influence corporations when they decide on Delaware as the location of their businesses. A noticeable fact about Delaware's business and financial landscape is the large number of credit-card companies that are incorporated here. This practice stems from the fact that Delaware is one of the few states that has very lenient interest rate laws. This effectively gives banks the freedom to charge any level of interest rates. Incorporation of a business in Delaware is done through the Division of Corporations. This might take from a minimum of 2 hours to a maximum of 24 hours. Delaware law has a requirement that any corporation registered in Delaware should have a registered agent in Delaware. Delaware corporations have assumed preeminence simply due to the fact that traditionally most US industries were located here. DuPont, the chemical company, is an example. Sixty percent of Fortune 500 companies and more than half of publicly traded companies in the US operate out of Delaware. |
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