Those wishing to invest abroad often choose the Turks & Caicos as their choice. The government has a successful open-arms inward investment policy, and there are no limits on foreign investment. Potential investors are subjected to various due diligence examinations by the Government Investment Unit. Every company needs a license, and some types of licenses are only available to residents of the Turks and Caicos Islands unless there are special conditions. For example, licenses for retail, truck, and car sales are limited to residents of the nation. Large-size investments often have little trouble getting a company license. Foreign investment is not subject to any limitations in TCI real estate. No limitations apply to foreign stockholders (apart from in the business categories mentioned above).
Trade restrictions or currency laws
The US dollar is used by the TCI. Money transfers into and out of the TCI are not subject to any limitations. To comply with anti-money laundering regulations, however, any payments entering the TCI via local banks that total more than US$500,000 must be accompanied by sufficient proof of their origin. The banks themselves choose the threshold amount and depending on how comfortable the specific bank is with the transaction, smaller amounts may be the subject of an investigation. The payment of earnings overseas is not subject to any limitations or reporting obligations. You are permitted to export hard money.
Patents and trademarks
The Financial Services Commission (FSS) in Grand Turk is where you may submit applications for patents and trademarks. The application procedure is simple, and details are available by getting in touch with the department at FSS.
Buying a property
Currently, there is no national property tax. It is necessary to pay transfer tax (also known as stamp duty), which may be spread out over a certain period. The rate is greater in Providenciales than on the other islands in the nation. In this nation, purchasing condominiums is a common financial strategy. Some people advocate for utilizing rental income to pay for mortgages and homeowner association dues. They are thus urged to only make the down payment in the hope that future earnings would cover bills going ahead, including the mortgage. Depending on the particular owner, this may or may not be the case. Several of the opulent condominiums in Turks and Caicos are managed by people who run the place like a hotel, keeping the resort’s external look and functioning.
Tax on capital gains
In the Turks & Caicos Islands, there is no capital gains tax or any comparable tax.
Citizenship and residence
Those who make substantial investments in a company or real estate could be eligible to apply for a residence visa. Often, the right to work on the islands is excluded. A Permanent Residence Certificate based on investment could be achievable for significant investors. Due to the Turks and Caicos Islands’ position as a British Overseas Territory, there are two types of citizenship. These are local Turks and Caicos Islander Status (previously titled Belonger status) and British Overseas Territories Citizenship. You have residence and employment rights as a BOTC. One who has Turks and Caicos Islander Status is eligible to vote, engage in some types of regulated business, and hold public office.
Business forms
The primary business forms utilized are subject to acquiring any required business licenses or other regulatory consents (the latter notably in the case of financial services). The business forms are:
- Typical TCI company limited by shares.
- Typical TCI company limited by guarantee.
- Typical limited partnership (LP).
Registration and establishment
A brand-new business must submit and register its articles of organization (charter and bylaws) and memorandum with the Companies Registry. It is feasible to purchase a ready-made business. After receiving instructions, a firm may be formed in one day. Nevertheless, it typically takes one week for the Companies Registry to receive and process all the documents. The personal presence of company directors is not necessary. The registered office of domestic corporations must be located inside the TCI. Under the Companies Ordinance, foreign corporations doing business in the TCI may register. Retail establishments, real estate firms, and auctioneers are among the businesses that are only open to TCI nationals (Business Licensing Ordinance).
Requirements for reporting
The primary reporting obligation is to submit an annual return that includes information on the following: shareholders, directors, and officers and capital arrangement. Financial statement filing is not required. The following is the government charge for filing the yearly return:
- USD 300 for a typical corporation.
- USD 350 for an exempt corporation.
Shares of equity
The share capital of a firm is often unrestricted. Nonetheless, certain businesses (including banks, trust firms, mutual funds, and insurance firms) are required to maintain a minimum share capital. The sum depends on the size, kind, and business strategy of the organization. If permitted by its articles, a business may change its share capital by ordinary resolution. If permitted by its bylaws and upheld by the Supreme Court, a business may cut its share capital by special resolution.
Invest Turks and Caicos Islands
A governmental statutory organization called Invest Turks and Caicos Islands was founded in 2015. This organization helps with business creation, immigration information, and other forms of investments in the islands. It also offers free information to potential investors, both local and international.
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