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Although unrecognised as an independent nation, Sealand does have a self-sufficient economy, declaring itself a "data haven" and setting up offshore internet-hosting facilities.
The guidelines also state that financial institutions should be prevented from setting up offshore subsidiaries where they could move employees to avoid the rules.
There is nothing unlawful in acting for or setting up offshore companies, but the lack of transparency is a cause for concern.
The law firm assists its clients in setting up offshore shell companies in countries commonly linked to tax avoidance such as the British Virgin Islands and the Seychelles.
Bain and other private equity firms use a variety of mechanisms to help investors avoid those taxes, including setting up offshore "blocker" corporations, a practice that has been criticized in some circles and has prompted legislative efforts to curb it.
He became adept at setting up offshore companies — Diva, Blancaflor, Eagle Overseas — to enable galleries to buy specific works and mask the identity of other investors in a transaction.
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It was set up offshore in 1993.
Outfits like Napster could also set up offshore.
"Lots of people set up offshore companies," Rajaratnam said, trying to alleviate Kumar's squeamishness.
Some of these companies have been set up offshore and pay no taxes at all.
To address that, Sankaty sets up offshore partnerships to work in tandem with the blockers, the documents show.
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