The definition of an Offshore Company is - a Company which rarely conducts business in its country of origin. In a jurisdiction where taxation is much lower and reporting restrictions are far more flexible than the country in which you reside. Other common names for this type of company are a 'non-resident Company' or 'IBC'. The term IBC stands for 'International Business Company' or 'International Business Corporation'
An Offshore IBC is an entity (or Company) that can only operate outside the country of its incorporation BUT can trade or operate WITH established ‘mainland’ Companies which have been formed within the same jurisdiction. An example of this would be; an offshore company trading with an LLC or Limited company that has been formed in the jurisdiction of the Offshore Company.
There are many features and benefits associated with the establishment of a non-resident company, and different individuals and organizations have their own specific reasons for incorporating in this way. Your financial affairs are YOUR business and as such, there should be a level of privacy and confidentiality. Going offshore provides these levels and this is one MAJOR FACTOR to consider when carrying out your ‘due diligence.’