Company Formation

Why Form a Company in the Turks and Caicos Islands (TCI)?
More and more individuals are choosing to form offshore companies in the Turks and Caicos Islands (TCI) because they offer:

  • Excellent asset protection;
  • Confidentiality of business affairs;
  • Fewer reporting requirements;
  • Potential tax savings;
  • Potential for improved property selling price.

The Companies Ordinance provides a choice between the Exempted Company (sometimes known as an IBC) as an offshore vehicle and the Ordinary Company as the standard vehicle for business conducted within the TCI.

Features of a TCI Exempted Company (or IBC)
The attraction of the TCI Exempted Company lies in a combination of its tax-exempt status and minimal disclosure and administrative requirements.

A TCI Exempted Company need not include the word "Limited" in its name, and may include such expressions as "Inc.", "S.A.", and "A.G.". On incorporation, it receives an undertaking from the Governor to the effect that no taxation on income or gains will apply for twenty years from the date of incorporation.

In order to obtain tax-exempt status the subscribers must at the time of incorporation lodge at the Companies Registry a signed declaration stating that the business of the company will be mainly carried on outside the TCI. The subscribers are not required to inform the Registrar of the identity of the beneficial owners.

A TCI Exempted Company must nominate a representative resident in the Islands for the purpose of service of legal process. Meridian Trust Company Ltd provides full corporate representative services as part of its company administration fee.

Other key features, which combine to make the TCI an offshore company formation jurisdiction of choice, are:

  • A sole shareholder, director or subscriber is permitted;
  • Resident or non-resident corporate directors, shareholders or secretary are permitted;
  • Only the registered office and articles of association are available on the public file;
  • The company must keep its corporate seal at its registered office but need not maintain there any record of the shareholders, directors, secretary, mortgages or charges;
  • The company need not hold any annual meetings and such as are held need not be held in the TCI;
  • Subject to certain solvency requirements the company may purchase or redeem its own shares;
  • The company can use a foreign name;
  • The company's capital may be registered in a foreign currency;
  • Accounts need not be filed or audited;
  • The only reporting requirement is an annual declaration of compliance with Exempt company conditions.

TCI Ordinary Company
TCI Ordinary Companies are generally used by those wishing to purchase real estate or otherwise carry on business within the TCI (in contrast to Exempted Companies which are used by those wishing to carry on business outside the Islands and which can only buy TCI real estate in very limited circumstances). The TCI Ordinary Company must include the word "Limited" or the abbreviation "Ltd" in its name.

TCI Ordinary Companies must file an annual return with the names, addresses and occupations of shareholders, directors and corporate officers. To protect client privacy, Meridian can provide nominee shareholder and director services as part of its all-inclusive annual company administration fee. A TCI Ordinary Company must also declare on an annual basis that there has been no change in its beneficial ownership.

A TCI Ordinary Company must conduct a general meeting of shareholders at least once annually. Where nominee shareholders are chosen, Meridian can conduct the general meeting on behalf of its client.

Other Types of Companies
A special form of company recognized by TCI law is the Limited Life Company (LLC), often known as a Limited Liability Company in the United States. The LLC is regarded as a partnership in the eyes of the United States tax authorities, and so is not taxed as a separate entity. Profits, losses and deductions are attributed to the individual members.

Also useful is the Company Limited by Guarantee, in which membership is not tied to the ownership of shares and therefore does create a property interest. Such a company can be structured to operate as a trust or a partnership while retaining the benefits of corporate entity.

Please advise us which type of company you would like when submitting the Company Application Form.

How Long Does it Take?
Company name availability can usually be confirmed the same day it is requested. Contact Us today to see if your chosen company name is available!

Companies can usually be formed within 48 business hours of returning a completed Company Application Form together with all of the necessary supporting documents. If you require a company immediately, please Contact Us to enquire about purchasing one of our shelf companies.

Fees
Unlike many of our competitors, our quoted company formation and administration fee is all-inclusive; we do not charge extra for providing a registered office, bank account or nominee shareholders. As a guide, you can expect to pay around $2,500 for an Exempted Company formation and 1st year administration and $1,000 for an Ordinary Company formation and 1st year administration.

Subsequent annual maintenance fees depend on the nature of the company but you can expect to pay approximately $1,250 for both Exempted and Ordinary Company administration. These fees may reduce depending on the purpose of the company. For a definitive written quotation by post, fax or e-mail please Contact Us.

In addition to our company formation fee, a TCI Government fee is also payable on incorporation and depends upon the level of authorized capital. It is the policy of Meridian Trust Company Ltd to register the maximum authorized capital possible for the minimum fee (i.e. to incur a Government fee of $150 for Exempted Companies and $300 for Ordinary Companies), unless otherwise directed by clients.

Government fees for Exempted Companies vary as follows:

  • For capital up to $5,000 the fee is $150;
  • For capital over $5,000 and up to $50,000 the fee is $150 plus 1% of the excess of capital over $5,000;
  • For capital over $50,000 and up to $100,000 the fee is $600 plus 0.5% of the excess of capital over $50,000;
  • For capital over $100,000 and up to $1m the fee is $850 plus 0.1% of the excess of capital over $100,000;
  • Capital over $1m is charged at $2,000.

The Government fee to accompany the annual return is $350.

Government Fees for Ordinary Companies vary as follows:

  • For capital up to $50,000 the fee is $300;
  • For capital over $50,000 and up to $100,000 the fee is $450;
  • For capital over $100,000 and up to $750,000 the fee is $550;
  • For capital over $750,000 and up to $2m the fee is $1,050;
  • Capital over $2m is charged at $2,050.

The Government fee to accompany the annual return is $300.

Important Notes
Meridian Trust Company Ltd charges for disbursements and other recoverable expenses incurred on behalf of clients.

Clients who do not wish to maintain a company are required to give 90 days' notice prior to the anniversary of purchase. Failure to do so will result in the subsequent year's fee being due and payable upon presentation of invoice.

Contact Details

Meridian Trust Company Limited

Level 2

Le Vele Plaza

PO Box 599

Grace Bay Road

Providenciales

Turks and Caicos Islands,

British West Indies

Telephone: (649) 941-3082

Fax: (649) 941-3223