Company Formation

FAQ of Company Registration

 

 

Q: Can my company own another company?

A: Yes. Your company can own another company, and you can use your company’s stock to buy another company, which is another advantage of Delaware companies. In fact, in accordance with the new regulations of IRS, even the S-Corporation can own and control the major parts of its subsidiaries.

 

Q: If I register more than one company, can I enjoy the discount?

A: Yes. After submitting the first application, you can enjoy a 5% discount when you registered and established a new LLC or a stock company, no matter when the new company is registered and established. If you are a new customer, you can enjoy the discount when using your own address and name to register. Please call for details.

 

Q: Does my company’s bank account need to be set up in Delaware?

A: No. You don’t need to set up bank account or handling business in Delaware when you register and establish company there. Even you don’t have to visit Delaware by your own. (For more information, see “Why Delaware”)

 

Q: Do your documents and forms checked and approved by lawyers?

A: Yes. The nature and form of your company is determined by the certificate of incorporation and the articles of incorporation. Delaware law allows increasing the company’s flexibility and the protection of the company by a text way in the articles of incorporation. Our legal adviser will carefully read, check and modify every document to draft an article of incorporation that best suits your company.

 

Q: In attracting investment, how to reflect the importance of a registered company?

A: Besides getting the reasonable return of the investment, the investors also hope the investment in your company can be reflected in a tangible way. And the only way is through the stock. It is impossible for a prudent and informed investor to invest a “project” or an “idea” under the circumstance of an unfeasible ownership structure. So, if you intend to negotiate and discuss with investors, preparing your ownership structure and business plan.

 

Q: How much shares I should hold in the company?

A: Just meet the needs. Your annual Delaware franchise tax is based on the shares you hold.

 

Q: In the whole company file, is the value of a stock equal to that of a share?

A: No. The stock is the certificate which is printed with your company name and total number of shares. You can choose the name of the shareholder and the number of the shares represented by stock, and input the information to the stock.

 

Q: How much should I set the par value of the stock?

A: There is no connection between the par value and the market value of the stock. If your stock is publicly traded, then the investors determine the market value everyday. The transaction price of some famous corporation at someday may be $50, $75, or$100, but their par value may be $ 0.00001. Par value may affect your franchise tax, so setting a lower par value is a way to save money. For the corporations with 1500 shares or less, the recommended par value is $ 0.

 

Q: About the name of the company, what does the Delaware law say?

A: Your company name shall include a legally recognized affixes at the end of that. The following affixes can be used for a Delaware company: Association, Club, Company, Corporation, Fund, Foundation, Incorporated, Institute, Society, Syndicate, or Limited;Or include one of the following abbreviations: Co., Corp., Inc., or LTD. You can not use "Bank", "Trust", "University" or "College" in the company’s name.

 

Q: If I intend to register a company, what do all of the services mean to me? What kind of services I can receive from your company, not others?

A: We provide the fasted registration service in the world. If we promise to deliver the next day, it means the registration, all the company documents including the company seal, the stock and the conference records will be delivered to you in the next day.

We have a special license in Delaware to be quickly handled in the approval process. Not only here, but also in company affairs of the state, your approval process enjoys the highest priority. Then we will promptly send your files by courier, thus you can receive them the next morning. (For most areas)

 

Q: What is Delaware registration agent?

A: In accordance with law of Delaware, if non-residents of Delaware intend to register and establish company in Delaware, they shall have registration agent in Delaware. And as the initial founder, the registration agent shall submit the applications and always be the registration agent at the duration of the company.

You can trust our registration agent services. We help you send your annual Delaware franchise tax report, calculate taxes, assist you in change the information of the company (such as increasing the number of shares or changing the company address), or just answer your questions when you encounter problems.

 

Q: How much is the registration agent fee?

A: We charge $ 50 per year. As far as we know, this is the lowest price among the same field. No matter when you registered the company, the cost includes all the costs in 12 months. (See the following question)

 

Q: When should I pay the registration agent fee?

A: We will send you a bill in the annual anniversary of your company, which means that the fee you paid will operate for the whole year (12 months). For example, if you submitted the registration application in October, then the next registration agent fee will be charged in the next October.

Some registration agent send bill in accordance with the calendar. If you registered company in the middle of the year or at the end of the year, then at the beginning of the next year, you may receive the bill again. Thus, the fee you paid first only includes several months’ services. Again, alert to other company’s services!

 

Q: For Limited Liability Company, what affixes can be used as the end?

A: For the Limited Liability Company registered in Delaware, you can only use the following affixes: "LLC", "L.L.C." and "Limited Liability Company", others can not be used. And the name of your Limited Liability Company can not include the words like Bank", "Trust", "University” or the "College".

 

Q: Will my registration agent fee increase in the future?

A: Absolutely not. We are proud to indicate that this is one of our characteristics. We are the only company promises charging the fixed annual agent fee of $ 50 in the duration of your company.

If some registration agents tell you that the fee is likely to increase at any time without informing you in advance, you have to be careful. They may and will do.

 

Q: How to implement the production, operation, and management of my company if I cannot go to America?

You may contact us to do business service of the administrative trusteeship.

 

Q: I heard that no matter for companies or individuals, they were stuck in the tax problems. How to solve those problems?

Tax is the responsibility for any companies and individuals in any countries. However, the amount of the tax may determined by the specific situation of your company.