Corporation chartered under the laws of a country other than the United States. Offshore corporations often do not engage in active business in the country in which they are incorporated. Some advantages companies attain from incorporating offshore often include favorable tax treatment and lower management fees and regulations.
Definition from Nolo’s Plain-English Law Dictionary
A corporation chartered under the laws of a country other than the U.S. that does not conduct substantial business in its country of incorporation. Some countries (particularly in the Caribbean) are popular nations of incorporation since they have little corporate regulation or taxes and only moderate management fees. Reasons to use an offshore corporation may include avoidance of taxes, ease of international operations, freedom from state regulation, and placement of funds in accounts out of the country.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:20 pm