United Kingdom or Delaware: where should you start a business?
The United Kingdom ranks higher in the index, 16 against 18. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Profits of £50,000 or less are taxed at 19%, with marginal relief up to £250,000 and 25% above that. VAT is charged at 20%.
No Delaware income tax is due where no business is done in the state, but annual franchise tax applies. There is no state sales tax.
Set-up
Online registration costs £100, and Companies House usually registers a company within 24 hours. The annual confirmation statement costs £50.
A corporation's filing fee starts at US$109. No standard processing time is published, but paid services offer 24-hour, same-day and faster filing.
On the ground
No director or secretary needs to live in the UK, but the registered office must be at an appropriate UK address. There is no minimum capital.
Every company must keep a registered agent with a Delaware address, and no director needs to live in the state. There is no minimum capital.
Ownership
The register of people with significant control is public and free to search. Home addresses and full dates of birth are withheld.
Under FinCEN's final rule, effective 14 August 2026, companies formed in the United States are exempt. Only foreign companies registered there still report.
Residence
Owning a company gives no right to live in the UK. An owner from abroad needs a visa such as the Innovator Founder visa, which requires an endorsement.
Owning a company confers no residence. The E-2 visa is limited to treaty nationals, and the EB-5 requires an investment from US$800,000.
Living and working
Currency
Pound sterling.
US dollar.
Time zone
UTC+0, and UTC+1 in summer.
UTC-5, and UTC-4 in summer.
Personal tax
Income over £125,140 is taxed at 45% (2026/27, outside Scotland); inheritance tax is 40% above £325,000, and capital gains tax applies.
Federal top rate 37% above $640,600 for a single filer in 2026; Delaware charges 6.60% from $60,000 and repealed estate tax in 2018.
Flights
From London, British Airways reaches New York in 8 hrs 10 mins, Dubai in 6 hrs 50 mins and Singapore in about 12 hrs 45 mins.
Wilmington (ILG) has Avelo flights to Florida and San Juan, and an American Airlines coach to Philadelphia, which serves Heathrow.
Language
English is used in practice, and Welsh can be spoken in legal proceedings in Wales.
English is the official language of the United States under an Executive Order of 1 March 2025.
United Kingdom vs Delaware: common questions
The United Kingdom: Profits of £50,000 or less are taxed at 19%, with marginal relief up to £250,000 and 25% above that. VAT is charged at 20%. Delaware: No Delaware income tax is due where no business is done in the state, but annual franchise tax applies. There is no state sales tax.
The United Kingdom: Online registration costs £100, and Companies House usually registers a company within 24 hours. The annual confirmation statement costs £50. Delaware: A corporation's filing fee starts at US$109. No standard processing time is published, but paid services offer 24-hour, same-day and faster filing.
The United Kingdom: No director or secretary needs to live in the UK, but the registered office must be at an appropriate UK address. There is no minimum capital. Delaware: Every company must keep a registered agent with a Delaware address, and no director needs to live in the state. There is no minimum capital.
The United Kingdom: The register of people with significant control is public and free to search. Home addresses and full dates of birth are withheld. Delaware: Under FinCEN's final rule, effective 14 August 2026, companies formed in the United States are exempt. Only foreign companies registered there still report.
The United Kingdom: Owning a company gives no right to live in the UK. An owner from abroad needs a visa such as the Innovator Founder visa, which requires an endorsement. Delaware: Owning a company confers no residence. The E-2 visa is limited to treaty nationals, and the EB-5 requires an investment from US$800,000.
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