In terms of the internal structure – there is surprisingly little difference! An offshore company is quite simply the same type of legal entity (a corporation), only registered outside the domicile country of its beneficial owner(s). Historically, though, the term “offshore” has been narrowly associated to a corporation, which is not only formed outside the home country of its owner, but also enjoys a number of benefits, not exactly possible back home. An onshore corporation pays income tax (sometimes, lots of it), whereas an offshore company is tax-free. An offshore company is also free from financial reporting and mundane book-keeping requirements. To form an offshore company, the owners don´t have to rack up a big paid-up capital, or any capital at all. Offshore corporation is not required to register its shareholders and directors on a public file. Offshore company is easy and quick to register, simple to operate and maintain. Apart from those benefits, the internal structure and management principles of offshore companies are still largely similar to those of any “regular” business corporation.