Offshore company definition

An offshore company is a company registered in a foreign country, where it generally does not conduct significant business activity in that country, but rather in other countries. The countries where these companies are registered are often tax-friendly jurisdictions that offer business-friendly tax laws, low or zero tax rates, as well as relaxed regulations and banking secrecy.

Offshore companies are often used for tax optimization and international tax planning purposes by multinational companies, investors and high net worth individuals. They can be used to hold assets such as real estate, boats or bank accounts, as well as to conduct international business activities.

However, it is important to note that the use of the offshore company is increasingly controversial and regulated, as it can be considered an abusive tax practice or even illegal in some cases. Many countries have introduced laws to combat tax evasion and tax evasion related to offshore companies.