What is an offshore company?

An offshore company is a company that operates in a country that is different than the country of incorporation. It is possible for a company to be incorporated in one country and operate in another country. The advantage of an offshore company is that the offshore company is able to do business in the other country without having to pay taxes in the foreign country. In addition, an offshore company can engage in tax planning, which means it can legally reduce the amount of taxes it has to pay. By incorporating a company in a country with a low tax rate, you can create tax savings by paying your employees in another country (who then won’t have to pay any taxes either). Also, offshore companies can reduce their taxes by claiming deductions and exemptions.