Meaning & use
offshore company
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Meanings
nouncountable
A company that is registered in a foreign country, especially one with low taxes and light regulation, often used to hold money or assets.
Grammar: Countable: you can say 'an offshore company' or 'offshore companies'; it takes a singular or plural verb.
Patterns
- set up an offshore company
- register an offshore company in a country
- use an offshore company to do something
She set up an offshore company in the Cayman Islands to manage her investments.
The newspaper reported that several politicians had money hidden in offshore companies.
Many international businesses use offshore companies to reduce their tax bills legally.
nouncountable
A company that does business in a country but is based in another country, especially one that provides services such as call centers or manufacturing.
Grammar: Countable; often used in the phrase 'offshore company' to contrast with 'onshore company'.
Patterns
- work for an offshore company
- outsource to an offshore company
- an offshore company based in a country
The airline's customer service is handled by an offshore company in the Philippines.
They moved their production to an offshore company to cut costs.
An offshore company can provide the same services at a lower price.
Word forms
| plural | offshore companies |
|---|
Common combinations
- set up an offshore company
- He set up an offshore company to hold his overseas property.
- register an offshore company
- You must register an offshore company if you want to do business there.
- offshore company in a tax haven
- The rich often keep their money in an offshore company in a tax haven.
- use an offshore company
- Some firms use an offshore company to avoid strict local rules.
- offshore company structure
- The lawyer explained the offshore company structure to the client.
Synonyms and how they differ
- offshore entity
- More formal and broader; it can refer to any legal structure, not just a company.
- foreign company
- Neutral term for a company from another country; it does not necessarily imply low taxes or secrecy.
- shell company
- A company that exists only on paper and has no real operations; an offshore company may or may not be a shell company.
Opposites
Word family
- offshore adjective
- Located or based in another country, especially for tax or business reasons.
- offshoring noun
- The practice of moving business operations to another country.
- offshore adverb
- In or to a foreign country, especially for financial purposes.
Commonly confused: offshore company or offshore bank account? offshore company or international company?
offshore company vs offshore bank account
An account held in a bank in another country; an offshore company is a business, not an account.
offshore company vs international company
A company that operates in many countries; an offshore company is specifically registered in a foreign jurisdiction, often for tax reasons.
Practice
Which sentence uses 'offshore company' correctly?
Choose one answer.
An offshore company is based in another country, often for tax or business reasons. Option 1 fits because the company is in Switzerland (a foreign country for many). Option 2 is wrong because 'offshore' does not mean on a boat; it means in another country. Option 3 is wrong because offshore companies typically serve international clients. Option 4 is wrong because 'offshore' means foreign, not local.
Make it your own
Write a sentence using “offshore company”, then check it and compare it with the examples above.