When a company incorporates in an offshore jurisdiction, the company is entitled to the full financial benefits of that jurisdiction. This can include low or no taxation, no double taxation, full confidentiality, more flexible structuring, and a variety of other advantages.
Most, though not all, of these offshore jurisdictions are located literally islands or archipelagos off the shores of continents, and usually refer to countries that were granted independence after having been British colonies or dependencies. Your offshore company will be incorporated, registered and located at an address in the offshore jurisdiction of your choice.