As offshore companies are tax-free, the choice of a jurisdiction will often be determined by factors such as:

• Political and economical stability
  
  
• Exchange control
  
  
• Tax treaties
  
  
• Simple, modern and flexible iincorporation procedures
  
  
• Guarantees against future taxes, e.g. The Cayman Islands offers attractive guarantees to both exempt trusts and exempt companies for 20 to 30 years from the date of incorporation
  
  
• Secrecy and confidentiality