What makes Wilmington, Delaware, so special?

Why incorporate in Delaware? A key factor of the state's attractiveness to businesses is its pro-business finance laws. For example, there is no Delaware corporate income tax for corporations that are formed in Delaware so long as they do not transact business in Delaware. In addition, shares of stock in Delaware corporations are not subject to Delaware taxes if the owner lives outside the state. For those reasons, many companies like to establish their headquarters in Delaware and the state receives a large percentage of its revenue from corporate registration fees. In 1988, the Delaware legislature enacted a law which required a would-be acquirer to capture 85 percent of a Delaware chartered corporation’s stock in a single transaction or wait three years before proceeding. This law strengthened Delaware's position as a safe haven for corporate charters during an especially turbulent time filled with hostile takeovers.

As the most populous and readily accessible city in Delaware, Wilmington has become a national financial center for the credit card industry, in part because in 1981 the state has eliminated the usury laws enacted by most states, thereby removing the cap on interest rates that banks may legally charge customers. Many major credit card issuers, including Bank of America (formerly MBNA Corporation), Chase Card Services (part of JPMorgan Chase & Co., formerly Bank One/First USA), and Barclays (formerly Juniper Bank), are headquartered in Wilmington. The Dutch banking giant ING Groep N.V. headquartered its U.S. internet banking unit, ING Direct, in Wilmington.