What is offshore company The term Offshore Company is used to describe a company from at least one of the two conditions: A company or other type of legal entity established or registered in a financial center outside the country or in a tax haven A company or group of companies (or sometimes a part thereof) engaged in manufacturing or business services outside the borders of the country. The term can also be used in reference to companies that have oil and gas operations at sea Purpose of these companies This registration is often done for the purpose of financial, legal and tax advantages. A company legally resorts abroad for the purpose of avoiding taxes or enjoying comfortable regulations. Foreign financial institutions can also be used for illicit purposes such as money laundering and tax evasion. Tax evasion is illegal because it allows a person or company to deliberately avoid paying taxes. [2] Characteristics of companies outside borders Although al...