An international business company (IBC) is a corporate entity that traditionally does not engage in business in the jurisdiction where it is incorporated.
When people talk about an offshore company they are often talking about an IBC. IBCs are usually incorporated in an offshore financial centre which is “offshore” from where the promoters and founders are. The IBC then usually operates “offshore” as well, that is, in other jurisdictions and not where the IBC is incorporated.
A number of jurisdictions offer IBCs and IBCs vary little between such jurisdictions. Most usually provide wide corporate powers to engage in diverse businesses and activities, reduced requirement to demonstrate corporate benefit, no requirement to appoint local directors or officers, and the requirement for a local registered agent providing a registered office.
Advantages of one jurisdiction over another mostly relate to price, availability of names, familiarity, and speed of incorporation and order completion.