What is offshore?

What is offshore?

If we ask what is offshore, we must first look at the meaning of the word offshore itself. The term offshore was created by combining two English words, which are off and shore. Off here means “outside” and shore means coast.

So one definition of the word offshore is that it is a business in which the company is established outside (off the coast/shores) of the state in which it carries out its activities. In such a case, the entity is registered abroad. In the mentioned question and in the search for the definition of offshore, the connection with business, the establishment of business companies in tax havens is also mentioned.

A state with a low tax burden, a favorable tax regime and certain legal certainty is referred to as a tax haven. Another term associated with foreign business is offshoring.

Definition of offshoring – this is how we refer to a situation where a business entity moves its production abroad. This can happen for the purpose of tax optimization, reduction of production costs, better efficiency, etc. Even Czech entrepreneurs are increasingly asking about and looking for offshore business, because they are trying to save as much as possible on costs arising from administration, taxes, or other related areas .

its benefits?

The advantages of offshore business are many. In addition to the aforementioned tax issues, for example, it is also the fact that you must have your company (for you must have your company, that “company” here does not mean the name, but the company as such) established in the country that has the country, you want with your products / services to expand, better trade (or economic, diplomatic, etc.) relations than with your, until then, home country.

Offshore offers numerous options. Before you decide to take full advantage of them, it’s a good idea to think about other steps in addition to finding out what’s offshore. For example, which jurisdiction is suitable for you, which corporate structure to choose, etc. Each jurisdiction then has its own specific advantages according to different types of business. Thanks to our many years of experience with offshore business, we are happy to advise you on everything related to offshore.