A company can purchase or be assigned the right to use a copyright, patent, trademark or know-how by its original holders, with a power to sub-license and consequently exploit the intellectual property rights in various countries. Such arrangements must be properly planned, as many high-tax countries impose withholding tax at source on royalty payments. An existence of a double-tax-avoidance Treaty between the countries involved may reduce such withholding tax.
An offshore company can be used by internet-businesses in a way of holding domain names and operating websites in a tax-free environment.
