High Peak-to-Average-Power Ratio (PAPR) of transmitted signals is a common problem in broadband telecommunication systems using an orthogonal frequency division multiplexing (OFDM) modulation scheme, as it increases transmitter power consumption. In consumer applications where it impacts mobile terminal battery life and infrastructure running costs, this is a major factor in customer satisfaction. Companding techniques have been recently used to alleviate this high PAPR. In this paper, a companding scheme with an offset, amidst two nonlinear companding levels, is proposed to achieve better PAPR reduction while maintaining an acceptable bit error rate (BER) level, resulting in electronic products of higher power efficiency. Study cases have included the effect of companding on the OFDM signal with and without an offset. A novel closed-form approximation for the BER of the proposed companding scheme is also presented, and its accuracy is compared against simulation results. A method for choosing best companding parameters is presented based on contour plots. Practical emulation of a real time OFDM-based system has been implemented and evaluated using a Field Programmable Gate Array (FPGA).