MATERIAL SPONSORED BY WORLD TRADE CENTER DELAWARE

Delaware is the “Corporate Capital of the World.” More than two million companies take advantage of Delaware’s incorporation services, including modern and flexible corporate laws, our highly respected Judiciary and legal community, an innovative financial sector, and a business-friendly government. Over 67% of the Fortune 500 companies are incorporated in Delaware and 79% of all IPOs are Delaware companies. Delaware’s Court of Chancery offers significant benefits to business by resolving business issues and conflicts in a timely and cost-efficient manner.

“Business owners and investors have the discretion to select any jurisdiction as their legal home for their business entity,” said Kristopher Knight, Chief Deputy Secretary of State and Director of the Delaware Division of Corporations. “However, they consistently choose Delaware.”

According to Knight, this preference comes down to four main reasons:

• Delaware’s General Corporation Law, which is “widely regarded as the most advanced and flexible business formation statute in the nation,” he said.
• The Court of Chancery, “a unique, centuries-old business court, dating to 1792, has written most of the modern U.S. corporation case law.”
• The state’s strong corporate and legal services community, which has “unparalleled expertise in the application of Delaware Corporate Law.”
• The Delaware Secretary of State’s Division of Corporations, which, Knight said, “…offers a wide array of services to meet the needs of the corporate community while providing prompt, friendly and professional services.”

A large African Diaspora community serves as an important link between Delaware and their countries of origin. Reflecting the cultural and economic importance of this community, the State of Delaware has created a Delaware African and Caribbean Affairs Commission “…to promote the welfare and interest of all people of African descent who reside in the state of Delaware.”

Delaware is the headquarters of The Center for Global Africa (CGA), a Pan-HBCU (Historically Black Colleges and Universities) academic think tank that “…engages in research, consultancy, advocacy and enterprising practices for global African development through [its] signature Academic Governmental Economic (AGE™) Model for Development.”  Through its unique partnership with the African Union and the African Peer Review Mechanism (APRM), the CGA provide resources for the study and engagement with Africa at the highest levels.

Delaware is not only for U.S. entities—companies around the world can take advantage of Delaware’s benefits. Locating your manufacturing, services, or research operations in Delaware means you are 90 minutes from the centers of political and economic power. Yet you will have a favorable corporate tax climate, a robust talent pool, especially STEM, FINTECH, bioscience and medical equipment, and agriculture and agrotechnology, our state’s largest sector.

From the thriving and expanding Port of Wilmington, your shipments are within one day and only one stoplight from the Port to Florida, Canada, or Chicago. We are serviced by frequent cargo and passenger railroad service. President Biden was known to commute to Washington every day for over 40 years as Senator. Today, in Air Force One, he takes advantage of our airports in all three counties.

Agriculture is Delaware’s single largest land use. Delaware is one of the country’s leading producers of broiler chickens and Sussex County Delaware produces more broilers than any other county in the entire US. Agriculture, agriscience, and precision agriculture present all kinds of opportunities for Africa/Delaware collaboration. The University of Delaware (UD) Emergency Poultry Disease Response (EPDR) Certificate Course teaches U.S. and international professionals about preparedness planning, biosecurity and assessment tools, and rapid response techniques and technology.

The Dupont Company, in 1802 began on the banks of the Brandywine River, became the catalyst for science in Delaware, continuing today. At nearly 12 times the national average, Delaware has the highest concentration of analytical laboratory instrument manufacturing employment in the United States. Numerous spin-offs and research achievements in scientific fields such as telecommunications, power generations, decarbonization and green energy, pharmaceuticals and medical equipment can trace their origins to Dupont.

Delaware’s products have even gone to outer space. ILC Dover of Frederica, Delaware, has been the main source of spacesuits for NASA for over 50 years, including those worn on the moon and the International Space Station. Future astronauts will wear their suits on Mars.

Delaware is the home to a thriving bioscience sector, anchored by the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL). It is a public-private partnership focused on advancing biopharmaceutical manufacturing. With an industry emphasis on the use of organic and indigenous materials to develop pharmaceuticals, bicontinental partnerships will be critical to identifying new resources for the treatment of disease or development of alternative, biodegradable technology.

Education is the cornerstone to Delaware’s leadership in Fintech and science. Delaware collaborations have resulted in ground-breaking educational achievements. Probably the most unique example is the development of the CRISPR in a Box™, an educational tool kit consisting of state-of-the-science gene editing technology for technical college and high school students (and younger). The partnership, according to partner Delaware Technical Community College, is “likely the first-ever collaboration among scientists, educators and a life-science company to train the next generation of genetic scientists and technicians in the revolutionary CRISPR gene-editing technology.” CRISPR in a Box is the evolution of a partnership between the college and the Gene Editing Institute and kits are available commercially across the globe.

Nearly 40 years ago, the landmark Financial Center Development Act (FCDA) established Delaware as a global hub for financial services operations and talent. Africa has much to contribute to Delaware’s Fintech sector as digital trade outpaces other forms of commerce. With more mobile phones than people, Africans utilize phones in innovative ways that promote opportunity and equity, a lesson that we can learn from Africa.

For African companies seeking to reduce the length of supply chains and to manufacture in the US, they should know that the modernized Coastal Zone Act is spurring economic growth in Delaware as it removes the restrictions on the existing industrial sites sitting abandoned or underutilized. The redevelopment of these properties is now possible.

Delaware boasts a cost of doing business 25% below the national average attracting businesses across a diverse range of industries. It is the US’s No. 1 state for fast internet with electric rates up to 25% lower than other Mid-Atlantic States. Delaware ranks 2nd-lowest for business costs in the nation, and the state has no sales tax, no inventory tax, and no value-added tax.

The numbers speak for themselves:

• 1st Per-Capita Basis Fintech Innovation (Delaware Prosperity Partnership)
• 1st Agricultural Value Sold per Acre (Delaware Prosperity Partnership)
• 1st Dockside Cold Storage (Port Wilmington)
• 1st Dockside Fumigation (Port Wilmington)
• Top 1% Delaware’s largest health system, Christiana Care, ranks in the top 1% of all U.S. hospitals (Healthgrades)
• 2nd Delaware State University ranks #2 among America’s Historically Black Colleges and Universities (U.S. News and World Report, 2022)
• 2nd Best Corporate Tax Favorability for New Firms (Tax Foundation, 2021)
• 3rd Best Corporate Tax Favorability for Mature Firms (Tax Foundation, 2021)
• 3rd Best Business Environment (US News & World Report, 2023)

Delaware enjoys a robust financial position. In May, Governor John Carney announced that the State of Delaware, for the 24th year in a row, once again received the highest possible AAA/AAA ratings from the nation’s top rating services. “Delaware’s financial condition has never been stronger,” said Treasurer Colleen Davis “…this lowers the State’s borrowing costs and increases interest income available for critical investments in schools, public safety, and our quality of life.”

Delaware’s pro-business legal, tax, regulatory climate, supportive entrepreneurial ecosystem, talented workforce, and highly regarded research and education institutions are just a few of the supports for companies to accelerate innovation in Delaware. Andrew Cottone, the President and CEO of Adesis, Inc., and the Founder of First State Hydrogen, Inc., says “Delaware moves at the speed of the entrepreneur.”