What are the differences between overseas companies and offshore companies?
The registered overseas company refers to a company which registers in a place overseas and regards this place as one of its main markets at the same time. For example: the registered American company, the registered British company.
The registered offshore company refers to a company which registers in a offshore jurisdiction but does not operate in this jurisdiction. It is due to the law of the offshore jurisdiction “the offshore company operating in the offshore area is not allowed”. For example: the registered bvi company, the registered Samoa company or the registered Panama company.
The offshore company is under less or no supervision from the registration place.
The purpose of registration
Many countries intend to create some political barriers to protect their own markets during the foreign trade. The registered overseas company aims at fulfilling the global strategy and get into foreign markets to take advantage of rich foreign resource or political environment. And the offshore company mainly aims at reducing the tax cost or the consideration of the capital operation.
The place of registration and the place of operation are divided or not
The places of registration and operation of the registered overseas company don’t need to be divided. But the law of the offshore jurisdiction provides that the offshore company cannot conduct any business activities in this offshore jurisdiction.
Broadly speaking, any company registered overseas can be called as overseas offshore company. But strictly speaking, the registered overseas company and the registered offshore company are two different concepts.