Meaning of an offshore company

Offshore or non-resident companies are described as companies that conduct an insubstantial or zero volume of business within their jurisdiction of incorporation.

More specifically, offshore companies have three characteristics: Firstly, they should be registered as an entity within the jurisdiction of incorporation. Secondly, the “incorporators” should be domiciled outside of the jurisdiction of incorporation.

Finally, the company should transact exclusively outside of the jurisdiction of incorporation. However, most associate the term ‘offshore company’ as a means of increasing tax efficiency. Click here to learn how you can set up a company through the Pearlem website.