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Why Guatemala?

Recently, we’ve seen an increase in document legalization requests for Guatemala which sparked our curiosity.  Additionally, in just a few months, on September 18, 2017, Guatemala will become a member of the Hague Apostille Convention. Interested by the uptick and new Hague membership, we did some research to find out “Why Guatemala?”

During our exploration we came across this article on Virgin’s website: The world’s best start-up hubs: Guatemala City, Guatemala.  To our surprise, Guatemala is a hub for Telecom companies!  Strategically located between two oceans, with ports on each ocean, and an EST time zone, Guatemala is well positioned for importing, exporting, and outsourcing.  Furthermore, Guatemala has an amazing resource in its population of hardworking and talented people.  All of these factors combine to make Guatemala an appealing destination for business start-ups.

So, what does Hague Convention membership mean?  Beginning on September 18, 2017, Guatemala will no longer require consular or embassy legalization for documents destined for use in Guatemala.  Instead, an apostille from the appropriate Secretary of State or U.S. Department of State, for federal documents, will be accepted.  Interested in seeing a list of all countries member of or party to the Hague Convention?  Click here.

If you have questions or need assistance, please contact our Washington, DC office at 202.386.7575, 877.531.1131 or dcorders@incserv.com.

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What is a Clean Hands Certificate?

Have you ever heard of a Clean Hands Certificate?  This request seems to be frequently asked to the team in our DC office.  Deirdre Davis-Washington is the Assistant Vice President of Incorporating Services (Incserv) in Washington and is kind enough to share this explanation with us:

A Clean Hands certification form is required to be submitted with any application for a license or permit in the District of Columbia, including a Basic Business License.

A clean hands certification is used in the business license application and requires the entity and/or its owners to attest to the fact that they do not owe the District more than $100.   A new process was started which requires issuing an actual certificate to go with the business license application.   These are issued by the Office of Tax & Revenue (OTR).  A business MUST have filed the FR 500 Combined Registration Application and received a “Notice of Tax Registration” before the OTR will issue the Clean Hands Certificate.  This certificate does not attest to tax returns  filed, etc. (different from a  good standing) and usually is used just as supporting documentation.

If an applicant for a license or permit has failed to file District tax returns, they are also subject to the Clean Hands Law (DC Official Code §§47-2861 through 47-2866)and will be denied the license or permit. The Office of Tax and Revenue (OTR) Collection Division receives Clean Hands certifications from various District agencies.

What is owed to the Department of Consumer & Regulatory Affairs, (DCRA), the District’s equivalent to the Secretary of State, is totally separate.  DCRA governs the business entities and have a two-year report filing requirement.  Good Standing certificates, as it relates to the standing of the entity and fulfillment of the requirements of maintaining a business in DC, are issued by DCRA.  If they are not in good standing with DCRA, their authority to do business may be revoked.

For assistance with this or any other request from the District of Columbia, Federal Agencies and Embassies or for help in general, contact Deirdre and her team at 202-386-7575 or dcorders@incserv.com

 Nothing herein is intended to constitute legal advice on any subject or to create an attorney-client relationship. The materials presented here are in summary form. To be certain of their applicability and use for specific situations, we recommend an attorney be consulted.

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Can Delaware Be Dethroned?

Josh Twilley, President of Incorporating Services, Ltd. shares an article from the Delaware Business Times, featuring a Professor Charles Elson, a well-recognized expert on corporate governance at the University of Delaware. Mr. Elson will be presenting at UCLA on the topic of “Can Delaware Be Dethroned?” discussing whether Delaware’s preeminence as the legal home to most of the Fortune 500 companies can be displaced.

The Delaware Business Times recently caught up with Prof. Elson for a Q&A. You can read the article in its entirety here. Below are some of the highlights from this article posted on August 15, 2016:

  • Delaware has a reputation for fairness and neutrality in determining corporate matters because other stakeholders (either corporate or individual) do not have unfair influence over the legislation. The Delaware Court of Chancery continues to be a global leader in corporate adjudication in part because of this fair balance.
  • Charles believes the movement towards federalizing corporate law is essentially already in place, in that many other states follow Delaware’s lead in new corporate regulatory law. Federalizing would create inconsistencies in the law which would result in the Supreme Court taking up many corporate cases, which they have little interest in doing.
  • Corporate law alone is not strong enough to prevent bad actors from using the corporate structure for illegal means. Delaware is no more complicit in allowing bad actors to use the corporate legal structure than any other state. (I would add that Delaware is less complicit because many other states have a less thoroughly developed corporate legal structure — in a less regulated environment, bad actors can get away with more…)

If you’d like to learn more about forming an entity in Delaware, contact us and a Corporate Specialist will assist you.

The information within this post is intended for general information purposes only. Incserv and its employees cannot offer legal or financial advice. Please consult with your legal counsel for assistance in how this information may or may not affect you and your business prior to making any decisions. The above information (and any attachments) should be judged accordingly.

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Can Delaware Be Dethroned?

Can Delaware Be Dethroned?

delaware

Josh Twilley, President of Incorporating Services, Ltd. shares an article from the Delaware Business Times, featuring a Professor Charles Elson, a well-recognized expert on corporate governance at the University of Delaware. Mr. Elson will be presenting at UCLA on the topic of “Can Delaware Be Dethroned?” discussing whether Delaware’s preeminence as the legal home to most of the Fortune 500 companies can be displaced.

The Delaware Business Times recently caught up with Prof. Elson for a Q&A. You can read the article in its entirety here. Below are some of the highlights from this article posted on August 15, 2016:

* Delaware has a reputation for fairness and neutrality in determining corporate matters because other stakeholders (either corporate or individual) do not have unfair influence over the legislation. The Delaware Court of Chancery continues to be a global leader in corporate adjudication in part because of this fair balance.

* Charles believes the movement towards federalizing corporate law is essentially already in place, in that many other states follow Delaware’s lead in new corporate regulatory law. Federalizing would create inconsistencies in the law which would result in the Supreme Court taking up many corporate cases, which they have little interest in doing.

* Corporate law alone is not strong enough to prevent bad actors from using the corporate structure for illegal means. Delaware is no more complicit in allowing bad actors to use the corporate legal structure than any other state. (I would add that Delaware is less complicit because many other states have a less thoroughly developed corporate legal structure — in a less regulated environment, bad actors can get away with more…)

If you’d like to learn more about forming an entity in Delaware, contact us and a Corporate Specialist will assist you.

The information within this post is intended for general information purposes only. Incserv and its employees cannot offer legal or financial advice. Please consult with your legal counsel for assistance in how this information may or may not affect you and your business prior to making any decisions. The above information (and any attachments) should be judged accordingly.