Foreign Direct Investment in Delaware
Why international companies choose to do business in Delaware
“We saw Wilmington as convenient for coordination with our corporate headquarters [in Belgium], only six hours away… Out of all the places we could go, Delaware was chosen by the CEO. We didn’t spend much time doing it. We liked Delaware, we liked Wilmington, and we moved in quickly.” – Belchim Crop Protection General Manager, Tom Wood
“Delaware is a very business-friendly state, focused on attracting and growing innovative companies like Incyte. Delaware has much to offer in terms of its talent pool and is perfectly situated, in close proximity to leading academic and research institutions in New York, Philadelphia and Washington, D.C. – aspects that are critical for businesses like ours that are powered by great minds and collaborative partnerships.” – Hervé Hoppenot, Chair, President and CEO, Incyte
These executives explain just some of the reasons why more than one million companies from around the world choose Delaware as their legal home. That includes two-thirds of Fortune 500 companies. Here are just a few of the reasons why:
Location: From Delaware, you can get anywhere
Delaware provides efficient access to the U.S. market. As part of the nation’s 7th largest market, being in Delaware means being close to all major business hubs throughout the 50 states.
Locating your business in Delaware means you have an easy drive to just about anywhere; Boston, New York and Washington, D.C. are all accessible by car or train. Choosing a Delaware location is a quick and easy way to stay accessible:
- Major international and national airports featuring nonstop flights to major cities throughout America and Canada
- America’s lead train system – Amtrak has a major hub in Delaware with routes throughout the Northeast corridor and points west.
- With ready access to a major interstate, Delaware is a 10-hour drive to more than one third of the American population.
Internationally respected business law system
At the turn of the nineteenth century, Delaware adopted a corporation code, the basic law that companies use to incorporate and that governs their powers. The code had three popular features: a simple formation procedure, low corporate taxes, and broad powers for companies.
The Chancery Court is the Delaware Court that applies the corporation code. It has grown in reputation as a specialized, expert, stable, and reliable “business court.” These factors have motivated many American companies to incorporate in Delaware over the past 120 years, and in turn made the Delaware Chancery Court the nation’s center for corporate litigation dealing with issues surrounding governance, including key transactions such as mergers and acquisitions.
Fast forward to today, and Delaware’s Court of Chancery is internationally recognized as the preeminent forum for resolving business disputes, and Delaware offers a powerful legal expertise in business law.
The fair and predictable nature of Delaware Chancery Court is just one of the many reasons more than 60 percent of Fortune 500 companies choose to incorporate in Delaware
- All cases before the Court of Chancery are heard by experienced judges, rather than by potentially uninformed or unpredictable juries.
- Judges in Delaware are selected rather than elected and this means that the judges reviewing cases have years of experience in business and a familiarity with Delaware’s robust body of knowledge – both national and international – on business law.
- A Court of Equity, Delaware’s chancery court focuses on fairness – not high-awards for damages.
- Delaware Chancery Court is considered an international model for specialized, expert, stable, and reliable review of business legal cases.
Ease of incorporation
In Delaware, you can form an entity in a matter of hours. Delaware provides a simple, straightforward process, from choosing a business name to filing for a certificate of incorporation. Delaware is a leading domicile for U.S. and international business entities because it provides a complete package of related services.
Exceptional Professional Services
Delaware is home to a large community of business professionals who have the experience and expertise to help get your business started, ranging from accounting services to incorporation support. Because so many companies are incorporated in Delaware, a robust infrastructure has developed for corporate governance and intellectual property. Most major financial institutions have a presence in Delaware, providing access to lending. The Delaware’s Division of Corporations (DOC) provide businesses and their advisors with prompt and efficient service. The DOC is committed to accommodating filing requests from around the world and offers expedited services for urgent and time-sensitive matters.