An offshore company is a business entity that is registered in a country different from where its owners reside. These companies are often established in jurisdictions with favorable tax laws, allowing for reduced tax liabilities and increased privacy. Common locations for offshore companies include places like the Cayman Islands and British Virgin Islands. Offshore companies can be used for various purposes, including asset protection, international trade, and investment. They provide a legal way to manage finances and can help individuals and businesses take advantage of global markets while minimizing regulatory burdens in their home countries.