What Is Offshore Company?

An offshore company, also known as an offshore corporation or an international business company (IBC), is a legal entity that is incorporated or registered in a jurisdiction outside the country where its activities primarily take place or where its owners reside. These jurisdictions, often referred to as offshore financial centres or tax havens, typically offer favourable tax and regulatory environments to attract foreign businesses. Offshore companies are commonly used for various purposes, including:

Tax planning: One of the main motivations for setting up an offshore company is to minimise tax liabilities. Offshore jurisdictions often offer low or zero tax rates on corporate profits, capital gains, dividends, or inheritance, providing potential tax advantages for individuals and businesses.

Asset protection: Offshore companies can be used to hold and manage assets, such as real estate, intellectual property, investments, or bank accounts, in a jurisdiction that provides enhanced asset protection and confidentiality. This can help shield assets from potential legal claims, creditors, or political instability.

Privacy and confidentiality: Offshore jurisdictions typically have strict confidentiality laws and regulations that protect the privacy of company owners and shareholders. This confidentiality can be beneficial for individuals who wish to keep their financial affairs private or maintain anonymity.

International business: Offshore companies are often utilised by businesses engaged in international trade and investment. They can facilitate cross-border transactions, hold offshore investments, and provide a platform for conducting business in multiple jurisdictions.

Estate planning: Offshore companies can be used as part of estate planning strategies to manage and transfer wealth, protect family assets, and minimise inheritance taxes.

While the use of offshore companies is legal, some jurisdictions may have regulations in place to prevent money laundering, tax evasion, and other illicit activities. It is crucial for individuals and businesses considering establishing an offshore company to ensure compliance with the laws and regulations of their home country and the offshore jurisdiction. Additionally, the transparency and reporting requirements of offshore companies have increased in recent years as part of global efforts to combat tax evasion and promote transparency in international financial transactions.
Back to blog
UOLLB SQE Turbocharge

UOLLB SQE Turbocharge

Get ready for the SQE1 with high-performance SQE Study Guides developed by UOLLB, edited by lawyers, and published by UOL Press to revolutionise your study method and exam strategy.

Turbocharge SQE Performance

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding.
Speed up your revision with us now👇

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.