While largely based on English law, which is internationally regarded as flexible enough to accommodate structures, Jersey's commercial legislation has proved to be less cumbersome in certain areas that have caused difficulties under the corresponding English statutes. The flexibility of Jersey law allows not only the creation of a wide range of structures and types of vehicle, including companies, trusts, unit trusts and limited partnerships but it also allows for their use in innovative ways. At the same time, guidance as to interpretation of the law can be taken from English authorities which gives a level of confidence. Trustees of Jersey trusts and directors of Jersey companies are, for example, subject to similar duties to those imposed by English law. Jersey lawyers, in reviewing proposed transactions on behalf of trustees and directors, are mindful of these.
Jersey has a reputation for stability and reliability as a jurisdiction in which to do business.
Jersey is one of the most politically stable offshore centres in the world. By virtue of its special constitutional relationship with the English Crown and arising out of over 900 years of custom and usage, the UK government has responsibility for the island's international relationships but not its domestic affairs. Jersey also negotiated a special relationship with the European Union by virtue of which Jersey remains outside the European Union for the purposes of, among other things, VAT and directives relating to fiscal harmonisation, but can trade freely with it. In relation to economic stability, Jersey is one of the few European economies that has built up a substantial strategic reserve and has no public debt. Its current low tax framework has been maintained on the island since 1940.