An offshore location sets up it&#x27;s laws to simplify the taxation and legal issues, like a nice API joining complex systems.<p>Funds are set up in offshore locations to cut the &quot;gordian knots&quot; of tax and securities laws, within a stable country that has skilled legal and administrative infrastructure.<p>Taxation and securities laws for direct investment between different countries&#x2F;states are complex, often unfair, and can change unpredictably.<p>The fund also needs to avoid getting taxed unfairly and other liabilities. For example countries have laws that would tax the whole fund if one citizen is a minor investor (which is why a fund in say Delaware might only accept foreign investors). Dual citizenship is another hideous complexity.<p>Some locations or funds allow countries to &quot;look into&quot; investments by their citizens and corporates, so are not necessarily secret at the government level.