Delaware is the second smallest state in the United States of America. It is also the leading corporate domicile and company law jurisdiction. Delaware has over one million active business entities, each paying an annual government fee. More than half of the Fortune 500 companies are incorporated in Delaware. Delaware is the brand name for company law in the United States.
Offshore, the British Virgin Islands (BVI) is the brand name globally for offshore incorporations. With over 450,000 active business companies, the BVI is the leading offshore incorporation domicile, far surpassing all of its competitors put together. However, the BVI is purely an incorporation jurisdiction while Delaware is the pre-eminent business jurisdiction. So, why is Delaware so successful?
What can the BVI learn from Delaware? This article examines the factors that have combined to create the Delaware product. It also considers how these factors can be brought together in the BVI to improve incorporation numbers and more importantly, to expand and diversify the BVI product to make it a pre-eminent global business jurisdiction rather than purely an incorporation jurisdiction. The building blocks are already here in the BVI. They just need to be consolidated.
Overall Lessons
There are two overall lessons from the Delaware success story: a) treat the making of a business jurisdiction as a business, and b) ensure all constituencies work together to make it successful. There is an unwritten compact between all of the constituencies creating the Delaware product to set aside internal competition and protectionism and to work together as one unit to sell the Delaware product. There are 49 other states, all wanting a slice of the Delaware business. The external competition is intense. As a result, all of the constituencies have come together, sometimes formally but more often informally, to perfect their own area of the product and to work together to ensure each area works seamlessly with the others to improve the overall product.
The making of a business jurisdiction is a business. Everyone in Delaware knows this. Everyone treats it like a business and the only way a business can be at the top of its market is for the units to work together to constantly improve the product.
On this note, let us examine the four reasons that Delaware is the number one business jurisdiction in the United States
source http://www.mondaq.com/x/374492/offsh...+From+Delaware
Offshore, the British Virgin Islands (BVI) is the brand name globally for offshore incorporations. With over 450,000 active business companies, the BVI is the leading offshore incorporation domicile, far surpassing all of its competitors put together. However, the BVI is purely an incorporation jurisdiction while Delaware is the pre-eminent business jurisdiction. So, why is Delaware so successful?
What can the BVI learn from Delaware? This article examines the factors that have combined to create the Delaware product. It also considers how these factors can be brought together in the BVI to improve incorporation numbers and more importantly, to expand and diversify the BVI product to make it a pre-eminent global business jurisdiction rather than purely an incorporation jurisdiction. The building blocks are already here in the BVI. They just need to be consolidated.
Overall Lessons
There are two overall lessons from the Delaware success story: a) treat the making of a business jurisdiction as a business, and b) ensure all constituencies work together to make it successful. There is an unwritten compact between all of the constituencies creating the Delaware product to set aside internal competition and protectionism and to work together as one unit to sell the Delaware product. There are 49 other states, all wanting a slice of the Delaware business. The external competition is intense. As a result, all of the constituencies have come together, sometimes formally but more often informally, to perfect their own area of the product and to work together to ensure each area works seamlessly with the others to improve the overall product.
The making of a business jurisdiction is a business. Everyone in Delaware knows this. Everyone treats it like a business and the only way a business can be at the top of its market is for the units to work together to constantly improve the product.
On this note, let us examine the four reasons that Delaware is the number one business jurisdiction in the United States
source http://www.mondaq.com/x/374492/offsh...+From+Delaware
