Setting up a TCI Offshore Company
All of our mortgages with G&P Capital are required to be done in the name of a company. This is a good idea for any borrower and is common practice when buying a vacation/investment property. It is mostly done to limit any liability issues that may arise when guests stay at your home.
We require the company name to increase protections for our investors, so that properties can be put under our control sooner in a default situation.
There are 2 types of companies, an Exempted Company (International Business Company) or an Ordinary Company. The type of offshore company you choose, will depend on your needs and where you plan to operate your business.
Guidelines for Setting up an Ordinary Company
The name must contain“Limited” or “Ltd.”
US dollar accounts only.
We can offer a registered company office address.
The company may open a local bank account.
Client information form is required with government ID.
Benefits of a Turks and Caicos Exempted Company
Tax Free
There is no direct taxation in the Turks and Caicos Islands.
Privacy
Disclosure is becoming more prevalent in the banking industry today, however there is still some degree of confidentiality in an IBC.
Ownership
No local ownership/partnership is required, non-resident owners can own 100% of the IBC.
Currency
TCI operates on the U.S. Dollar (although an IBC can capitalized in any currency).
Language
English is the official language in Turks and Caicos.
British Law
Turks and Caicos is a British Overseas Territory and operates under British Law.
Types of Offshore Company
Ordinary Company
Many of our financing clients choose to hold their vacation properties in an offshore corporation. The proper company for this type of transaction is called an ‘Ordinary Company’. Ordinary Companies must file yearly returns, have an annual general meeting and declare there has been no changes to the ownership of the corporation every year.
The process to set up an Ordinary Company is quick and easy, with an upfront cost around $2,500. After the first year, you can count on a yearly fee of approximately $1,500/year to keep it in good standing.
Exempted Company (IBC)
An Exempted Company or IBC, is one which does not conduct business in the country it is registered. These tax-exempt companies are desirable for their minimal disclosure requirements and of course the lack of direct taxation in the Turks and Caicos.