Offshore company is a business entity formed under the laws of another country with no connection to its place of domicile. Such entities are primarily created for the purpose of minimizing costs, operating in markets that offer tax or regulatory benefits, or limiting their legal responsibility to specific classes of claimants. This form allows ease in transfer pricing and lower trade barriers in other countries. for more info visit my website.

An offshore company may have an affiliate relationship between companies established at both the home nation and at the offshore location; this type is often referred to as a double-bottom structure. Allianz AIG has such an arrangement where one subsidiary (Allianz France) manages insurance once it crosses borders which then get serviced by subsidiaries.