Offshore Corporation Legal Meaning and Definition

Here is a simplified definition of the legal term Offshore Corporation.

Offshore Corporation (noun)

An offshore corporation refers to a business entity formed in a foreign country. Its creation usually aims for tax benefits, decreased operational costs, and lesser government involvement from the home country. This kind of corporation is often established in a country with lower tax rates to exploit these advantages. Please note, an offshore corporation does not exempt the company from obeying the laws and regulations of the country where it actively operates.