If you are looking for a software development company, you might be wondering what is the difference between onshore and offshore company? In truth, both onshore and offshore companies are just about the same. An offshore company can offer the same services as an onshore company and both have limited liability. The main difference between an onshore and offshore company is the tax rate they pay. Usually, the tax rate offshore companies pay is very low or zero in some jurisdiction. On the other hand, onshore companies pay normal tax rates which are higher than the tax paid by offshore companies. This article will describe the differences between onshore and offshore companies, including the pros and cons.