Offshore company setupis also called offshore corporate formation, Offshore business
setup , Offshore company registration , Offshore company
incorporation, Offshore business establishment and Offshore
Offshore business is about using the possibilities offered by
countries (commonly known as Jurisdictions), whose legislation
allows for certain advantages (tax, confidentiality, company
structure, etc.) to be used by non-residents.
This means that a country, or Jurisdiction, will allow registration
of a company and offer them certain tax freedoms in exchange for an
annual licence fee. It is normally a legal requirement that the
registered company must not conduct any business or own any assets
in the Jurisdiction of incorporation.
This in turn allows companies to be set up in that Jurisdiction,
sometimes resident, sometimes not (depending on the legislation),
to trade on an international basis taking advantage of the easier
flow of money on the international markets. These Jurisdictions
often allow another company to be appointed as the Director and
Shareholder of a company. Most countries today still partake in the
idea that the flow of money in or out of the country has to be
restricted, regulated, or at least monitored, and of course, taxed.