The Turks and Caicos Islands' status as an important corporate domicile dates from enactment Companies Ordinance 1881 which remains at the core of the financial service legislation and such legislations continues to be improved upon over the years to meet the changing demands of international business community. The Ordinance provides for the registration in Turks and Caicos of Ordinary Companies, Exempted companies (IBC), Foreign Companies, Non-profit Companies and Limited Life Companies.

Ordinary Companies are formed for the purpose of carrying on business in Turks and Caicos...and the company will then need to apply for a business license.

Foreign Companies are similar to the Ordinary Company but it must also nominate a representative resident in Turks and Caicos for service of process. The domicile of an existing overseas company may be transferred to TCI where the laws of the host domicile do not prohibit such a transfer.

Turks and Caicos Exempted Companies. The majority of the companies formed are in this category. They are the offshore company that many speak about and are established for the purpose of carrying on business outside of the Islands. Such companies are termed exempted companies as they are exempted from compliance with certain of the regulaitions that apply to ordinary companies. Exempted companies are not required to obtain business liscences. They may be formed for any legal purpose inlcuding: financing, leasing, investment holding, trading, shipping or patent and trademark holding, (these are a few uses). There is no taxation other than the fixed yearly Government Fee.

Cost of professional fees for setting up a corporation in Turks and Caicos are about $US2000.00 and then an annual renewal fee is paid that varies from one firm to the next. Ask Peter for a list of lawyers that can help you decide whether you require or could benefit from forming a IBC and what the ongoing costs are likely to be.

Although creating an offshore company provides confidentiality and limited liability, it does not automatically reduce the tax liability of those living in most of the industrialized world. The owners of these companies still have the obligation to report the income earned by these offshore companies as part of their worldwide income and pay the the appropriate taxes.