Frequently asked questions.

Definitely Yes , It’s required for taxes communication, bank opening process, and registering as Amazon seller. Moreover makes your business appear more trustworthy in the eyes of customers, colleagues and other important contacts.

Wyoming only requires you to pay a minimal annual report fees. In addition, you do not have to pay state income tax and franchise tax.

In Delaware, no state income tax nor franchise tax is paid.

We recommend Wyoming state .

Delaware is more geared towards large corporations because it provides better legal protection for shareholders and directors.

The annual tax for a limited liability company is $300.00 If the limited liability company does not conduct business in Delaware, that is the only tax paid to Delaware.

The limited liability company’s offices may be located anywhere in the world, as long as the limited liability company maintains a registered agent in Delaware. Non-residents who form LLC’s, may not have to pay U.S. taxes.

A general corporation – often referred to as a stock corporation, open corporation or C corporation – is highly recommended when a company goes public or plans a private offering of stock. General corporations are also typically used when a company wants to attract venture-capital funding.A general corporation has three tiers of power – shareholders, directors and officers. Each has different rights and responsibilities within the corporation.

Investors generally want two things: a suitable return on their money and tangible, legal evidence of their investment (their part of ownership) in your enterprise. Stock certificates are the only way to accomplish the latter. Experienced and savvy investors are far less likely to invest in an abstract project or idea without the stock ownership structure in place. If you approach or are approached by an investor, having a stock ownership structure in place and a prepared business plan vastly increase your chances of gaining investors.

Franchise Tax is the fee imposed by the state of Delaware for the right or privilege to own a Delaware company. The tax has no bearing on income or company activity; it is simply required by the state of Delaware to maintain the good standing status of your company.The term “Franchise Tax” does not imply that your company is a franchise business.The Franchise Tax for a corporation is due by March 1 of every year.

Par value has no relationship to the market value of your stock. If your stock were publicly traded, investors would determine its day-to-day market value. The stock of many large and well-known corporations may trade for $50, $75, or $100 on a given day, but the par value of their stock may be as low as $.00001. Par value affects your Franchise Tax, so you can save money by assigning a low value. A $0 par value is usually recommended for companies with 1,500 shares or less.

No-par stock is stock that is essentially issued without a face value. It can be issued to shareholders without the exchange of funds, goods or services.Having no par value will not restrict the selling of your shares to investors at the price determined by the Board of Directors and accepted by the investor (just like shares that do have a par value).It should be noted that some U.S. states do not allow corporations to issue no-par stock.Fortunately, Delaware is not one of those states. The Delaware Division of Corporations allows Delaware general corporations to hold up to to 1,500 shares of no-par stock fee-free.

By June 2023, the UAE will implement a new corporate tax law. This means that businesses with taxable profits exceeding AED 375,000 will be levied with a 9% corporate tax rate, one of the lowest in the world. The tax is only applicable to taxable profits and not to the company’s total turnover. 

The new tax law applies to all companies, including those registered in free zones .

Foreigners who start a business or invest in an existing company in Dubai’s mainland or the free zones are eligible for a residence visa.