Offshore is a term that can be applied to offshore banks, companies and investments, and refers to any location beyond national boundaries, whether on land or water. In terms of more commercial activities, offshoring can often be referred to as outsourcing.
An offshore company is one that is headquartered abroad, i.e. located in a country other than the investor’s or client’s home country.
A company may have several reasons for moving offshore:
There are many countries with offshore financial centers (OFC), in fact, there are some that are very popular, such as Switzerland, Belize, the Cayman Islands, etc…
As everything in this world, there are two points of view about offshoring. Those who are against it argue that it is a form of tax evasion, and those who are in favor argue that offshore companies help the flow of capital.
The main characteristics of offshore companies are: