I'm a lawyer in NY (where I used to work) and the U.K., I also have a company here (in the U.K.). Cost of incorporation in the U.K. is GBP25 ($50), takes 1 Hour max and can all be done online with the incorporation docs emailed to you after 30 mins. Incorporating a Co. is very, very easy here. Bankruptcy blacklisting also only lasts 3 yrs now (excluding students trying to write off their student debt by incorporating and folding - former loophole).
As for E.U. V's U.S. Corporate (chancery) law it all hinges on a thing called 'The Delaware Effect'. In this E.U. this was tested in the European Court of Justice (our highest court) in 'The Centros Decision' where a Danish couple avoided the $4,000 incorporation fee in Denmark by incorporating in the U.K. and opening an office in Denmark. The ECJ ruled in their favour citing the free movement of persons (corporations are non-natural entities having the rights of a natural person).
The U.K. (Corp tax 22%) and Ireland (Corp tax 12.5%) are the Delaware's of Europe due to a rich body of corporate case law, ideal business law and economic climate and lenient laws on corporate responsibility. Your Sarbanes Oxley Act has resulted in a dilution of the Delaware effect and an uncompetitive business environment due to the expense of compliance. Its introduction has lead to London (and the LSE its stock exchange) becoming the preferred place of incorporation and IPO, and in London becoming the Largest Financial centre in the world. More money was invested in venture capital, and more takeover activity took place, in London this year than in the USA in the past 3 yrs. I was a stockbroker for 18 months after leaving law so sorry for the legal and finance lecture but hope this clarifies a few things.
Google, Microsoft, Cisco, Paypal, Dell, IBM and ebay all have their main base of European operations in the Republic of Ireland where they enjoy a 10% corporation tax (as the got in before it went up to 12.5).
Soooooooo, I'm not sure why YC are still incorporating companies in Delaware.
As for E.U. V's U.S. Corporate (chancery) law it all hinges on a thing called 'The Delaware Effect'. In this E.U. this was tested in the European Court of Justice (our highest court) in 'The Centros Decision' where a Danish couple avoided the $4,000 incorporation fee in Denmark by incorporating in the U.K. and opening an office in Denmark. The ECJ ruled in their favour citing the free movement of persons (corporations are non-natural entities having the rights of a natural person).
The U.K. (Corp tax 22%) and Ireland (Corp tax 12.5%) are the Delaware's of Europe due to a rich body of corporate case law, ideal business law and economic climate and lenient laws on corporate responsibility. Your Sarbanes Oxley Act has resulted in a dilution of the Delaware effect and an uncompetitive business environment due to the expense of compliance. Its introduction has lead to London (and the LSE its stock exchange) becoming the preferred place of incorporation and IPO, and in London becoming the Largest Financial centre in the world. More money was invested in venture capital, and more takeover activity took place, in London this year than in the USA in the past 3 yrs. I was a stockbroker for 18 months after leaving law so sorry for the legal and finance lecture but hope this clarifies a few things.
Google, Microsoft, Cisco, Paypal, Dell, IBM and ebay all have their main base of European operations in the Republic of Ireland where they enjoy a 10% corporation tax (as the got in before it went up to 12.5).
Soooooooo, I'm not sure why YC are still incorporating companies in Delaware.