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, such as asset protection, international trade, and investment. They may also help individuals and businesses manage their finances more efficiently. However, it's important to comply with legal regulations in both the offshore jurisdiction and the owner's home country.