What is a foreign company?

A foreign company is a legal entity registered by one or several individuals outside of their country or countries or residence. This kind of company can be set up with an aim of reducing the tax liability and increasing the protection of the assets acquired by the company.

Foreign companies sometimes are also known as "ghost companies", "shell companies" or "offshore companies". The objective of a foreign company is to generate profits by carry out activities abroad without being subject to tax. These companies are recognized as separate legal entities from its beneficial owners.