Offshore company

In isolated instances, the term can also be used in reference to companies with offshore oil and gas operations.

Thereafter, there are certain small intermediate countries or areas such as Hong Kong, Singapore and Mauritius (sometimes referred to as "mid-shore" jurisdictions) which, whilst having oversized financial centres, are not zero tax regimes.

Finally, there are classes of industrialised economies which can be used as part of tax mitigation structures, including countries like Ireland, the Netherlands and particularly the United Kingdom, in commentary relating to corporate inversion and the use of British Overseas Territories for this purpose.

However, in the early 2000s the OECD launched a global initiative to prevent "ring fencing" of taxation in this manner, and many leading jurisdictions (including the British Virgin Islands and Gibraltar) repealed their International Business Companies legislation.

But IBCs are still incorporated in a number of jurisdictions today including Belize, Seychelles, BVI Anguilla and Panama.

However, these tax regimes are not limited to conventional offshore jurisdictions: the United Kingdom operates on broadly similar principles in relation to taxation of companies.

A number have also removed or watered down rules relating to maintenance of capital or restrictions on payment of dividends.

[10] Offshore companies are used for a variety of commercial and private purposes, some legitimate and economically beneficial, whilst others may be harmful or even criminal.

Allegations are frequently made in the press about offshore companies being used for money laundering, tax evasion, fraud, and other forms of white collar crime.