For a company to be referred to as a corporation, it has to be incorporated. This legal process of forming a corporate company or entity is what is known as incorporation; any incorporated company is then identified by the terms limited (ltd) or ‘inc’ as an addition to their name. Incorporation allows for the company assets and company owners/investors to be separate from each other in what is referred to as limited liability, which is an advantage to the owners/shareholders.
The term offshore corporation and offshore company are used interchangeably as they are the same. A company is referred to as an offshore if it is incorporated or registered away from the country of its investors and the region of its main operation and offices. It operates outside the country where it is formed. However, it can hold a bank account in the home country of its owners.