The countries which charge very low tax rates when compared to other countries are known as tax haven countries. Tax haven countries share very limited information with the tax authorities of foreign countries. To avail the benefits of tax policies made by tax haven countries, the business entities or individuals need not have a presence in those tax haven countries. You can read about the Base Erosion and Profit Shifting (BEPS) – Issues, Measures taken by India in the given link.
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