Offshore companies, aka non-resident companies, are companies that are incorporated in foreign countries in order to avail of flexible tax structures and fertile business prospects present in the foreign country. Generally, an offshore company has three defining characteristics:
The company is incorporated under offshore company regulations
The company is formed by person/s located outside the jurisdiction of the country in which it is formed.
The company does not carry out sizeable business within the offshoot jurisdiction of the place of incorporation.