Delaware has been a leader in the finance and insurance sector for more than 25 years, the result of a supportive, pro-business legal environment and favorable tax legislation.
The finance and insurance sector is Delaware’s third-largest employer and the State’s largest generator of economic activity. The State is among the world’s most important financial and credit card operations hubs, earning its position as the international corporate capital with a powerful combination of legal and business resources that enable banking, financial and insurance companies to conduct operations efficiently and profitably.
The State’s legislature has long been attuned to the strategic importance of the businesses that comprise this sector, crafting innovative legislation to respond to their needs, such as the landmark Financial Center Development Act of 1981 that gives financial companies tax incentives and eliminates usury caps.
Delaware entities are not required to pay income taxes if they do not operate or generate income in the State. In 2004, the State passed legislation creating the Headquarters Management Corporation, a new entity that allows corporations to establish a significant physical presence in Delaware to provide inter-company management services with a very low tax liability.
Some of the world’s top banks, insurers and other financial institutions have significant operations in Delaware, drawn by the State’s pro-business environment, lower business costs, affordable cost of living, and an extraordinarily deep pool of industry experts with advanced degrees. The industry is well-supported by a community of legal and corporate service professionals.
The large number of finance and insurance companies attracts a talented pool of college graduates and drives important research and initiatives at the State’s universities, such as the Institute for Financial Services Analytics at the University of Delaware, a collaboration between UD and J.P. Morgan Chase.
Founded in 1895, the Delaware Bankers Association is a not-for-profit private trade association comprised of national and state chartered banks, non-depository trust companies and savings banks that have assets in or are authorized to accept deposits in Delaware.
On May 2, 2016, at the second annual Consensus Conference in New York, Delaware Governor Jack Markell announced his support for the creation of a new method of representation of corporate share ownership.
The first question many international business owners ask is, “how much will it cost to launch my business in the U.S.?” Calculating the fees, taxes and costs associated with launching and operating a business in the States can be daunting. A good way to get started is to speak with a good accountant.
Delaware’s financial sector is rapidly expanding—in fact, at nearly twice the national rate. Some 4,300 new jobs were created in the State’s financial services industry in the last five years, more than half of those in just the last two years.