Offshore Corporations are often used for vast array of activities including trade financing, profit upstreaming, holding assets, procurement of raw materials and tax minimization. Joint company ventures often use the benefits of incorporation when the principals are from different countries and prefer to incorporate in a jurisdiction that is particularly favorable for low or zero taxation.

In many jurisdictions an offshore Company is recognized as an alien national and as such can confer a trade advantage or may help avoid a trade disadvantage. It can also be used as an integral part of a trust structure.