How to Open a Company in Cayman Islands or Delaware? The Advantages and Disadvantages

Private wealth attorney Eduardo Arista was cited in a Bloomberg Línea article about the advantages and disadvantages of opening up a business in Cayman Islands or Delaware, which are turning into hot spots for companies like startups. Entrepreneurs should know the regulations in these areas to avoid challenges. Mr. Arista said they need to decide whether they will be a Corporation or an LLC. They also have to figure out whether shareholder rights will be in a public constitution document or in a private shareholder agreement.

"Note that preparing a good shareholder agreement is essential, because the code establishes certain rights and obligations that apply by default in the absence of having one," said Mr. Arista.

READ: How to Open a Company in Cayman Islands or Delaware? The Advantages and Disadvantages