Your Delaware LLC or Corporation has an Annual Report due and a Franchise Tax bill coming. For Indian companies with US subsidiaries, keeping the Delaware Division of Corporations filing current is not optional. Failure to file an Annual Report triggers administrative dissolution after the grace period, and unpaid franchise tax accrues interest at 1.5% per month under Delaware law. Your banking relationship, US contracts, and investor due diligence all depend on a valid Certificate of Good Standing. KAMRIT Financial Services LLP manages the complete filing cycle: authorised share reconciliation, franchise tax calculation, Annual Report preparation, and e-filing with the Delaware Division of Corporations. We also handle California, New York, Texas, and Wyoming entity maintenance. Your internal team stays focused on business operations while we manage the state compliance calendar and deadlines.
What is USA Annual Report and Franchise Tax in India 2026?
A USA Annual Report is a mandatory disclosure filed with the Secretary of State where your corporation or LLC is registered. Delaware requires all business entities to file an Annual Report and pay Franchise Tax each year by March 1 for corporations, with no formal annual report form for LLCs but Franchise Tax still applying to C-Corporations. The Franchise Tax under Delaware General Corporation Law Title 8, Section 114 and Section 511 is calculated either on authorised shares or the assumed par value method, whichever produces the lower tax. Your C-Corporation pays this regardless of whether it operates in Delaware. For LLCs, there is no franchise tax in Delaware but other states like California impose an $800 minimum annual LLC tax plus gross receipts tax under California Revenue and Taxation Code Section 17942. The Delaware Division of Corporations manages these filings through their online portal at corp.delaware.gov. Your Certificate of Good Standing, required for investor rounds, VC due diligence, and US bank account opening, is only issued when all franchise taxes are paid and Annual Reports are current.
Who needs this
This service applies to Indian companies and NRIs that own US entities. Check whether any of these conditions describe your situation.
- Indian company with a wholly-owned US subsidiary incorporated in Delaware, California, New York, Texas, or Wyoming
- NRI founder with a Delaware C-Corporation or LLC registered as a US startup vehicle
- US entity that has completed a stock split, reincorporation, or change of registered agent in the past 12 months
- Delaware corporation with more than 5,000 authorised shares where franchise tax optimisation matters
- US entity with bank accounts in the United States that require a valid Certificate of Good Standing
- Company preparing for an overseas funding round, acquisition, or IPO where US entity standing is reviewed
- US subsidiary that has not filed an Annual Report or paid franchise tax in the previous fiscal year
- Multi-state US entity that needs compliance managed across two or more Secretary of State jurisdictions
- US entity whose registered agent has not sent renewal notices or the entity is approaching dissolution status
- LLC or Corporation that needs its EIN, Articles of Incorporation, or operating agreement reconciled before filing
Documents required
KAMRIT needs specific corporate records to prepare accurate filings and optimise your franchise tax liability.
- Articles of Incorporation or Certificate of Formation from the relevant Secretary of State
- Current Cap Table with authorised shares, issued shares, and shareholder details
- Form 10-K or prior year financials if your franchise tax is calculated on the assumed par value method
- Delaware Franchise Tax Report or prior year filing record from corp.delaware.gov
- Registered Agent details and the state of your registered agent appointment
- Any amendments to the Certificate of Incorporation or Articles of Organisation since last filing
- EIN (Employer Identification Number) confirmation letter from the IRS
- Copy of the Operating Agreement for LLCs or bylaws for corporations
- Bank statements or credit card statements showing US entity transactions for California gross receipts tax calculation
- Board resolution or shareholder approval authorising the Annual Report filing
- KAMRIT engagement letter and client authorisation form for e-filing
- Passport and PAN copy of the Indian authorised signatory or NRI director
How KAMRIT runs it, step by step
KAMRIT follows a structured four-phase process from document collection to final certification delivery.
- Document Collection and Entity Status Check. KAMRIT requests all corporate records from the client within 24 hours of engagement. We verify the entity status on the Delaware Division of Corporations public search portal to confirm whether any franchise taxes are outstanding or if the entity is approaching administrative dissolution. For multi-state entities, we check the Secretary of State portal in each registered state. This audit phase typically takes 2 to 3 business days.
- Franchise Tax Calculation and Optimisation. For Delaware C-Corporations, KAMRIT calculates both the authorised shares method and assumed par value method under DGCL Section 114 to determine which produces the lower tax liability. We prepare the Franchise Tax Report accordingly. For California LLCs, we calculate the $800 annual tax plus gross receipts tax tier. The client receives a fee estimate before we proceed with filing. This step takes 3 to 5 business days.
- Annual Report Preparation and E-Filing. KAMRIT prepares the Annual Report with current officer details, registered agent information, principal office address, and share capital data. For Delaware, we e-file through corp.delaware.gov using the entity account. For other states, we file through the respective Secretary of State portals. The client reviews and approves the draft before submission. E-filing confirmation is received within 24 hours for Delaware.
- Fee Payment and Filing Confirmation. KAMRIT pays the state filing fees and franchise taxes using the entity account or client-authorised payment method. For Delaware franchise tax, payment is made directly to the Delaware Division of Corporations. Government fees are billed at actuals. Confirmation of filing and payment is sent to the client within 2 business days of submission.
- Certificate of Good Standing Procurement. Once all filings and taxes are current, KAMRIT orders the Certificate of Good Standing from the Delaware Division of Corporations (cost: $50 for same-day, $20 for 24-hour) and any other requested state authorities. This document is delivered as a PDF and original hard copy by courier within 5 to 7 business days of the filing date.
- Compliance Calendar Setup. KAMRIT sets up the next filing deadline in your compliance calendar. For Delaware C-Corporations, the next deadline is March 1 of the following year. For California entities, the deadline aligns with the California tax year. KAMRIT sends reminders 60 days and 30 days before each deadline to prevent missed filings.
Timeline
From the day KAMRIT receives complete documentation, the Annual Report filing takes 5 to 7 business days for a single-state entity. Franchise tax payment is processed concurrently. Certificate of Good Standing delivery adds another 5 to 7 business days depending on the state and whether same-day processing is selected. Multi-state filings take 10 to 15 business days for the complete cycle. The regulator-controlled stages are the Secretary of State processing time and the Certificate of Good Standing issuance, which typically takes 1 to 2 business days after payment confirmation in Delaware. KAMRIT-controlled stages include document review, tax calculation, and filing preparation, which we complete within the first 5 business days. Government processing at the state level is outside our control but is typically immediate for online filings. Total elapsed time from complete document receipt to certificate in hand is 15 to 25 business days for single-state entities.
How our pricing compares
KAMRIT charges a starting fee of $100 / Rs 9,000 plus government fees for a single-state Annual Report and Franchise Tax filing. Government fees vary: Delaware franchise tax ranges from $350 to $35,000 depending on share structure, with the minimum $350 for small corporations. The Delaware Annual Report filing is $25 plus $50 to $175 for the Certificate of Good Standing. IndiaFilings charges Rs 15,000 to Rs 25,000 for US entity annual compliance with a 20 to 25 day turnaround. Vakilsearch quotes Rs 18,000 to Rs 30,000 for Delaware Annual Report filing. ClearTax offers US entity compliance starting at Rs 12,000 but adds per-state fees for multi-state filings. LegalRaasta prices range from Rs 10,000 to Rs 20,000 but does not include franchise tax optimisation services. KAMRIT's pricing is competitive at the base level but delivers additional value through franchise tax optimisation under DGCL Section 114, multi-state filing management, and the compliance calendar service. Our pricing includes the registered agent coordination and annual reminder service, which most competitors charge separately.
Common mistakes KAMRIT avoids
First-time filers and businesses without a dedicated US compliance function make predictable errors that lead to penalties or administrative dissolution.
- Filing the Annual Report but not paying the Franchise Tax, which leaves the entity non-compliant in Delaware
- Assuming LLCs do not need to file anything in Delaware, when C-Corporations owned by the same LLC still have franchise tax obligations
- Missing the March 1 Delaware deadline because the financial year-end and the state fiscal year are confused
- Paying franchise tax under the wrong method, resulting in overpayment when the assumed par value calculation would have been lower
- Not checking multi-state nexus, where a Delaware entity doing business in California also owes California franchise tax
- Using a lapsed registered agent address, which causes the Annual Report to be rejected by the Division of Corporations
- Failing to update the registered agent or principal address after a corporate restructure, creating discrepancies in state records
- Ordering a Certificate of Good Standing before paying outstanding franchise taxes, which results in an invalid certificate