AREAS OF
SPECIALTY
Tax
& Estate Planning
Turks
and Caicos was intentionally made an offshore centre by the United
Kingdom following recommendations made in 1970. It has
remained a nil-tax jurisdiction, with no taxes on income or capital,
no exchange control, and statutory protection of confidentiality.
The financial services legislation is modern and flexible, permitting
the creation of practically every form of vehicle to suit the needs
of the professional tax or estate planner from the trust to the
limited life company to the company without shares to the limited
partnership to the restricted market reinsurer. Savory
& Co. has been actively involved in the creation of offshore
vehicles since 1981, frequently working with overseas professionals
to tailor documentation to the needs of individual plans
and structures.
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Company
Formation & Management
The
Companies Ordinance provides a choice between the exempted
company as an offshore vehicle and the ordinary company as the standard
vehicle for business conducted within Turks and Caicos. Neither
type requires locally resident shareholders or officers and both
may issue bearer shares. A company may do all that a natural
person may do, or its powers may be limited to specific objects.
Capital may be expressed in any currency, and consist of shares
of any par value or of no par value. The liability of members
for the debts of the company may be limited wholly or partly or
liability can be unlimited, and different members may have different
liability. Persons dealing in good faith with the directors
of a Turks and Caicos company are not required to inquire as to
their corporate authority.
The
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.
A special
form of company recognised by Turks and Caicos law is the limited
life company, usually known as a limited liability company in
the USA.The limited life company is regarded as a partnership for
the purposes of the US tax code, and so 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.
Savory
& Co. has a close relationship with The Chartered Trust
Company, the largest and longest established company formation
and trust company in Turks and Caicos, and we utilise its streamlined
services for the incorporation and management of companies registered
under the Companies Ordinance. In all matters of a legal nature
arising from corporate operations and affairs, we offer expert advice
and assistance. We can also provide corporate nominees to hold shares,
and, in selected cases, are prepared to provide directors and other
officers.
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Trusts
& Trustees
Based
on the established English law of trusts, the Trusts Ordinance
incorporates provisions from other jurisdictions and several original
refinements, not least of which is the abolition of the old prohibition
against perpetual trusts. The trust is an attractive and useful
vehicle for the purposes of tax and estate planning, and for the
various other purposes ranging from the removal of assets from one’s
estate to simple privacy to use by corporations for commercial transactions
and investment programmes. The Trusts Ordinance is applicable
to trusts whose validity is governed by the law of Turks and Caicos.
It is open to specify in the trust instrument that the administration
of the trust, and indeed the interpretation of the instrument itself,
will be governed by the laws of different jurisdictions. The instrument
may also provide for the law governing each aspect of the trust
to be changed from time to time. A transfer to a trust by an individual
cannot be set aside if following the transfer the individual concerned
retains sufficient assets to meet his actual and estimated liabilities.
We will
prepare or review trusts deeds in accordance with instructions from
the client's advisers in the home jurisdiction, and will advise
generally on the applicable law.We can provide trustees ourselves
or secure the services of The Chartered Trust Company in
cases where ongoing fund management is required.
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Banking
& Fund Management
Retail
banking services are currently provided by Barclays Bank Plc,
Bank of Nova Scotia, and the Canadian Imperial Bank of
Commerce. whilst private banking services catering to offshore
needs are provided by a growing number of investment banks and trust
companies.The Banking Ordinance 1979 seeks to encourage multi-national
institutions to establish banking operations in Turks and Caicos,
as well as to facilitate the establishment of captive banks by large
corporations and family concerns.
We can
advise generally as to the placement of funds in Turks and Caicos
and effect the opening of new accounts.We will also prepare and
supervise applications for both National and Oversea bank licences
to the Superintendent of Banking, and will assist in the preparation
of the requisite business plan.We can also give recommendations
as to placement of funds to suit individual requirements.
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Insurance
The
Insurance Ordinance provides a conducive environment for those
wishing to carry on insurance or reinsurance business from within
Turks and Caicos, with a regulatory framework designed to minimise
the risk of disreputable operations becoming established and affecting
the reputation of Turks and Caicos insurance companies generally.
Various types of insurer's licence are available, depending upon
whether the company will be writing offshore business only or domestic
business too, and whether its clientele will be restricted or not.
Licences are compulsory for insurance managers, brokers and agents.
Penalties for non-compliance are stiff, but the emphasis is on actively
encouraging new operations with sound and experienced management.
The firm
will assist with licence applications and the preparation of the
accompanying business plan.We can also provide or arrange local
administration services for licensed insurance operations.
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Real
Estate
There
is no restriction on the acquisition or sale of land in Turks and
Caicos.Title to land falls under the regime of the Registered
Land Ordinance, a system of title registration which facilitates
confirmation of title by persons intending to acquire an interest
in land, and provides indefeasibility of title upon the acquisition
of the interest. An essential feature of the system is the guarantee
by the Crown against loss arising by virtue of an error in the land
register.Whilst there is no tax on capital gains, stamp duty is
levied on transfers, although in some cases there are legitimate
ways to mitigate or avoid it. Property prices in Providenciales
in particular have been enjoying a boom in the recent past, and
increasing interest is being shown in the less developed islands.
We will
advise generally on the acquisition of property in Turks and Caicos
and the various modes of ownership, and will handle all forms of
property transactions, from preparation of the necessary agreements
and instruments through to closing and registration.
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Property
Development
Despite
the marked increase in tourism over recent years, Turks and Caicos
continues to offer tremendous potential for developers.In addition
to a plenitude of privately-owned property, Crown land can be made
available on long term-lease, or, through association with a Turks
and Caicos citizen, by way of a conditional purchase lease, depending
upon the nature of the development proposed.In addition, incentives
may be granted by Government in the form of exemption from customs
duty on materials and equipment imported for the development, and
reductions in or exemptions from work permit fees and other associated
costs.In the case of certain approved developments, the Government
may agree to the grant of a permanent residence certificate to the
investor.
Savory
& Co.will advise and assist in all aspects of development
projects in Turks and Caicos, including preparation of development
agreements and building contracts, liaison with Government officials
and agencies, and the submission of applications for planning approvals.
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Business
Establishment & Residence
There
exist a number of opportunities for the establishment of new businesses
in Turks and Caicos, and current government policy is to attract
inward investment. All businesses, if not licensed under some other
law, must have a licence under the Business Licensing Ordinance.
The Government encourages the participation and/or training of "belongers"
(Turks and Caicos citizens) in new enterprises, and it will normally
be difficult to establish a new business in one of the areas reserved
for belongers. On the other hand, where the business is in an area
not being adequately served, an unconditional licence will generally
be forthcoming.Foreigners wishing to engage in gainful occupation
or to become ordinarily resident are required to obtain a permit
to do so from the immigration authorities.Permanent residence may
be granted to persons of substance after five years of residence,
or if the amount of inward investment is sufficently great, may
be granted immediately.
With
the firm's long experience in Turks and Caicos, informed advice
concerning the establishment of new enterprises and all matters
of immigration is offered to clients interested in doing business
or simply looking for an alternative place of residence.We can assist
in preparing and overseeing applications for business licences,
work permits and residence permits.
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Shipping
A Registry
of British Ships is situated at Grand Turk, and it is relatively
simple and inexpensive to register a vessel under 50 tons. Registration
of larger ships will generally not be possible.Registration is possible
only for shipowners coming within the definition of British subjects,
and a Turks and Caicos company comes within that definition. Indeed
in that regard a Turks and Caicos company may be registered as the
owner of a ship in any Registry of British Ships. As there is no
restriction on who may own a Turks and Caicos company, it is an
appropriate vehicle for the foreign national wishing to register
in a British Registry.
Savory
& Co.will attend to registration of yachts and ships at
the Grand Turk Registry, including cases where the desire is to
transfer registration from another port of registry. We can also
arrange the incorporation of an ordinary company (see above) for
the purposes of registration.
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Commercial
Litigation
The practice
and procedure of the Turks and Caicos Supreme Court generally follows
that applied in the English courts, and current English case law
and law texts are routinely accepted as authority in matters where
legislation does not specifically apply or requires interpretation.Case
law and texts from other Commonwealth countries and territories
are also accepted as persuasive authority. Accordingly, all the
usual pre-emptive remedies like the Mareva injunction (freezing
a defendant's assets pending disposition of an action) and Anton
Piller order (permitting the search for and seizure of property
and records in danger of being removed or destroyed) are available,
the former in particular being commonly employed.The Supreme Court
sits quarterly, and sessions are presided over by a resident Chief
Justice.
In most cases
and obviously where no conflict arises, Savory & Co.
will accept instructions from clients both within and outside Turks
and Caicos to conduct proceedings in commercial matters. Since 1983,
the firm has successfully conducted a number of appeals in the Court
of Appeal, for both appellants and respondents. More recently the
firm enjoyed success in a final appeal before the Judicial Committee
of the Privy Council in London.
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