Onshore and offshore are terms used to describe the location of business activities, companies, or investments. The main difference between onshore and offshore is the location of the legal entity and how it is structured. Here are some key points about onshore and offshore:
Onshore:
- Refers to business activity that takes place within a country where the company or investor has residence.
- Onshore companies are incorporated in the same country where the owner lives.
- Onshore outsourcing refers to outsourcing business processes to agencies in the same country.
- Onshore wind farms are located on land.
Offshore:
- Refers to business activity that takes place outside of ones home country.
- Offshore companies are formed in a country outside of where the owner has residence.
- Offshore outsourcing refers to outsourcing business processes to agencies in a foreign country.
- Offshore wind farms are located in bodies of water, such as oceans or seas.
In general, going offshore provides services to non-residents, while onshore refers to business activity that takes place within the same country where the company or investor has residence.
