It is often debated if Scientific Research Publishing (SCIRP) is a Chinese or a US American company. The answer is straight forward:
Scientific Research Publishing Inc. is a US American company. It is registered in Delaware, USA. This makes Delaware SCIRP’s home, and “domestic state“. Its Principal Place of Business (PPB) is in Wuhan, China.
Everything clear now?
In view of the political competition between China and the USA some people wish to define SCIRP Inc. as a Chinese company (for whatever reason). This is not correct!incorporated in accordance with law.” This means the SCIRP is so to speak born in the USA.
Incorporation means forming of a new corporation through registration (incorporation). A corporation is a legal entity that is effectively recognized as a metaphysical person under the law. This concept is called corporate personhood.
“Corporate personhood is an American legal concept that a corporation, as a group of people, may be recognized as having some of the same legal rights and responsibilities as an individual. For example, corporations may contract with other parties and sue or be sued in court in the same way as natural persons.“ “As a matter of interpretation of the word “person” in the Fourteenth Amendment, U.S. courts have extended certain constitutional protections to corporations.“ „The basis for allowing corporations to assert protection under the U.S. Constitution is that they are organizations of people, and the people should not be deprived of their constitutional rights when they act collectively“ (Wikipedia: Corporate personhood)
SCIRP Inc. is “born in the USA” and it is a “person” (independent of its owners) with US constitutional rights, therefore, SCIRP Inc. is US American.
“Corporations … are owned by shareholders whose liability is limited to their investment. Shareholders do not typically actively manage a corporation; shareholders instead elect or appoint a board of directors to control the corporation in a fiduciary capacity.“ “Corporations can exercise human rights against real individuals and the state, and they can themselves be responsible for human rights violations.” “A corporation … is often required to register with other governments as a foreign corporation, and is almost always subject to laws of its host state pertaining to employment, crimes, contracts, civil actions, and the like.“ “Incorporated or Inc. denotes the corporate status of the entity and puts everybody on constructive notice that they are dealing with an entity whose liability is limited.” (Wikipedia: Corporation)
Delaware was in 1899 the second state in the USA to adopt an enabling corporate law, with the goal of attracting more business to the state. It became the leading corporate state in 1913. (Wikipedia: Corporation)
Today „more than 50% of all US publicly traded companies … are incorporated in Delaware. (Wikipedia: Delaware)
“Today more than one million business entities have made Delaware their legal home.“ Delaware is home “not only for US entities – companies around the world can take advantage of Delaware’s benefits.“ “Delaware does not require any business activities or offices to be located in Delaware, other than a registered agent.” (Delaware Corporate Law)
SCIRP’s registered agent can be determined from its registration (see About SCIRP
3500 S. Dupont Highway
Dover, Kent, DE 19901
Some advantages incorporating in Delaware: “Delaware does not require any business activities or offices to be located in Delaware, other than a registered agent.” “Owners and managers need not be U.S. citizens.“ (Delaware Corporate Law)
“For corporations, there is no state corporate income tax for companies that are formed in Delaware but do not transact business there (but there is a franchise tax).“ “There is no personal income tax for non-residents.” (BizFilings)
“Many people incorporate in one state and have their principle place of business in another state.“ “The state where you incorporate is called the domestic state and the other 49 [US] states are called foreign states.“ “A company is subject to general jurisdiction in both the state of incorporation and in the principal place of business.”
“Home is where the incorporation is.” (Delaware Registered Agent)
This has also been confirmed by the U.S. Supreme Court’s 2014 decision in Daimler AG v. Bauman where “the court explained that a corporation is most likely to be ‘at home’ in its state of incorporation …“ (New England In House)
SCIRP’s address in China is called its Principal Place of Business (PPB). PPB is a term from US American legislation with respect to incorporation. Less formal, the PPB is called headquarters or head office. In contrast to the home of the legal entity, the PPB is where the buildings are (brick and mortar). It is where “executives make decisions (the nerve center) and where the activities are conducted (the muscle center) … Every company has one principal place of business. Generally, you need to go on record there, so if there is a problem, the … aggrieved parties know where to serve you with official papers.“ (Delaware Registered Agent)
It applies similarly in other countries that a US registered company has to go on record at its Principal Place of Business.
The Principal Place of Business for SCIRP is clearly in Wuhan, China. Nevertheless, this does not negate the fact that the home of the legal entity SCIRP Inc. is in the USA.