The Cayman Islands owes its ongoing success as a major international financial and investment fund centre to many factors including:

Convenience and cost effectiveness
Generally a new investment company can be incorporated overnight for a relatively small fee with minimal ongoing costs.

Stable legal and regulatory system and compliance with international standards
The Cayman Islands legal framework:
(a) Is based on the English common law system and is supported by a strong independent judiciary;
(b) Has been deemed  by the International Monetary  Fund to be well  developed and in compliance with a wide range of international standards; and
(c) Has been approved by the OECD and recognized by the CFATF as having a strong compliance culture.

Business friendly legal environment
(a) Flexible commercial and corporate legislation designed to facilitate corporate transactions;
(b) No direct taxes on income tax, including no personal or corporate income; and
(c) Simple and effective insolvency law respected by both lenders and borrowers.

Well recognized by international investment banking and finance community
Cayman Islands companies are frequently used:
(a) to establish private equity or hedge funds;
(b) as an IPO vehicle;
(c) to facilitate MBO, LBO or other similar M&A transactions;
(d) to issue bonds or warrant/call options;
(e) as a borrower or guarantor in major debt finance transactions; and
(f) to open business bank accounts.