An offshore Corporation is a separate business entity, which is established with limited liability by law and is involved in international business activity. Except some of the large corporations, which are publicly traded, all other is private and closely held. These corporations are usually formed outside the country of residence. This type of corporation raises its capital by issuing the shares, bonds, debentures etc. The liabilities of this corporation are limited to its members and not extend to its shareholders and debenture holders. The corporation has the right to issue bonus shares and right shares also. It can make contracts, hire employees, buy and sell goods and services, deal in stock market, rent office space, maintain the saving accounts and retirement plans for employees along with all other banking transactions. In this era the concept of offshore corporation seems to be an imperative one as now a days business is not limited to a particular country but it has extended its feet in the international banking transactions also.

The article of association is a document for internal management that contains basic information as the name, share structure and purpose of the corporation. This has been created for internal regulations and norms of the company, which regulate the routine activities. These have to be followed by its employees, shareholders and directors. This is not for the public but if requested then it can be published at the registered office of company. A new corporation may adopt the standard set of By-laws upon instruction. There is a corporate search, which reveals the name of the corporation, directors, memorandum of association, the date of existence and all public related information’s.

These corporations have two types of shares first is Bearer Shares and the second is Registered Shares. In bearer shares the name of the owner is not mentioned. The physical custodian assumes the owner of the shares and the transfer of shares can be made just by the deliverance of the certificate. On the other hand, in case of the registered shares the name of owner is mentioned in the certificate and he or she is the only owner of the mentioned number of shares. There could be no relevance of ownership just with the custody of the certificate. For the transfer of these shares, the first owner needs to send his will to transfer the shares to the corporation and then corporation cancels the previous certificate and issue a new certificate to the new owner and enter his name in its shareholder register.

The offshore Corporation can appoint the registered Agent who can act on the behalf of the corporation and the corporation made legally liable for all the transactions entered by him. These agents play a role of a co-coordinator between the clients and the corporation. The nominee directors could also be appointed in any of the Offshore Corporation if requested so.