What is an offshore Company?

In real terms an offshore company is a corporation that is owned by a person who is a resident or citizen of a country other than that of the country in which the offshore corporation is incorporated. The Company is "offshore" from his own country—hence the term "offshore company".

Persons prefer to form companies in countries which have zero or low tax rates and which also have laws protecting their privacy and confidentiality. Anguilla and Nevis are attractive jurisdictions for forming offshore companies because of their zero tax rates, confidentiality laws and also because companies can be incorporated quickly and at low cost.