Offshore Corporations Law and Legal Definition
An offshore corporation is a corporation chartered under the laws of a country other than the United States. Some countries, especially in the Caribbean, are popular nations of incorporation since they have little corporate regulation or taxes and only moderate management fees. Professional trustees and nominal officials in the country of incorporation perform routine contacts with the local government but take no active part in management. The reasons for the use of offshore corporations may include avoidance of taxes, ease of international operations, freedom from state regulation and placement of funds in accounts out of the country.
There is a plethora of financial vehicles available to the offshore business person or investorb&
- offshore corporation -- limited by shares or guarantee; public, ordinary or private
- limited partnerships
- US-style limited liability companies
- equity-based arrangements such as trusts.
- And there are several "tax haven" islands in the Caribbean:
- Bermuda and the Cayman Islands are expensive and specialized.
- Others, such as Barbados, have varying degrees of domestic taxation.
- And several (which I'll leave unnamed!) are just a bit on the shady/questionable side.