The term offshore company is somewhat ambiguous. It can mean either a company incorporated outside of the jurisdiction of its primary operation or any company that is incorporated in a tax haven or offshore financial center.
Most often the definition of ‘offshore company’ is a mix between the two above and an offshore company is defined as a company that:
a) is incorporated in a jurisdiction where the owner not is domiciled at the time of incorporation,
b) do not perform any business in the jurisdiction where it is incorporated,
c) is incorporated in a jurisdiction with low taxes, and
d) is incorporated in a jurisdiction with strong secrecy laws.
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