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Definition : Offshore companyOffshore or non-resident companies are described as companies that conduct an insubstantial or zero volume of business within their jurisdiction of incorporation. More specifically, offshore companies have three characteristics: Firstly, they should be registered as an entity within the jurisdiction of incorporation. Secondly, the 'incorporators' should be domiciled outside of the jurisdiction of incorporation. Finally, the company should transact the major majority of business outside of the jurisdiction of incorporation. However, most associate the term 'offshore company' as a means of increasing tax efficiency.
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