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I think you need to add a lot more context to your question. (IE, edit your submission.) As an American, who's been involved with both Silicon Valley and Bosto

I think you need to add a lot more context to your question. (IE, edit your submission.) As an American, who's been involved with both Silicon Valley and Boston startups, I find it rather absurd that anyone here would ever incorporate outside of the US. Likewise, I find it absurd that anyone running a startup outside of the US would ever incorporate in Delaware. > "especially Indian startups" Do you mean startups in India, or do you mean startups run by Indian immigrants inside of the US? Maybe there's something that I don't know? Either way, you're asking a specific question to a very wide audience. You need a lot more context if you want helpful answers and a coherent discussion. So, if you're reading this, scroll up and push the "edit" button. Spend a minute or two adding some good context; don't assume that the wide Hacker News audience has any clue what you're talking about.

dhirenb 3y ago
Putting "especially Indian startups" makes it confusing but OP means startups in India. Indian startups are typically incorporated in Delaware (or Singapore) instead of India. There are a variety of reasons: * Ease of incorporation, getting bank accounts, predictable business laws, etc. * The majority of the capital going into these startups is coming from outside India (a lot from the US). These investors want a more predictable and well trodden path for their investment and so they too encourage company formation in Delaware. * After a while things become the norm in startup-land and most companies follow the playbook they've seen being done before.
908B64B197 3y ago
> Likewise, I find it absurd that anyone running a startup outside of the US would ever incorporate in Delaware. What if I told you it's sometimes easier for a foreinger to setup a corporation and sell in the US than it is to do so from their home country? A frenchman told me once that the US immigration system was easier to navigate than the regulations around a new business in his home country... As for why Delaware instead of Dubai, I'm confident Delaware will still be a functioning democracy inside a strong economic union in a hundred year, with a stable, global currency and predictable laws and regulations. I'm not confident the UAE will qualify as "stable" in as little as 10 years. Other than oil, there's nothing of value there.

dhirenb 3y ago

Putting "especially Indian startups" makes it confusing but OP means startups in India. Indian startups are typically incorporated in Delaware (or Singapore) instead of India. There are a variety of reasons: * Ease of incorporation, getting bank accounts, predictable business laws, etc. * The majority of the capital going into these startups is coming from outside India (a lot from the US). These investors want a more predictable and well trodden path for their investment and so they too encourage company formation in Delaware. * After a while things become the norm in startup-land and most companies follow the playbook they've seen being done before.

908B64B197 3y ago

> Likewise, I find it absurd that anyone running a startup outside of the US would ever incorporate in Delaware. What if I told you it's sometimes easier for a foreinger to setup a corporation and sell in the US than it is to do so from their home country? A frenchman told me once that the US immigration system was easier to navigate than the regulations around a new business in his home country... As for why Delaware instead of Dubai, I'm confident Delaware will still be a functioning democracy inside a strong economic union in a hundred year, with a stable, global currency and predictable laws and regulations. I'm not confident the UAE will qualify as "stable" in as little as 10 years. Other than oil, there's nothing of value there.