Turks and Caicos: Types of Company
The Turks and Caicos Islands emergence as a major corporate domicile dates from the enactment of the Companies Ordinance 1981. The legislation was regarded as highly innovative and has been duplicated by other jurisdictions. The Ordinance continues to be amended to meet the changing demands of the international business community.
Currently there are five types of companies which can be incorporated under the Ordinance, namely the Ordinary company, the Exempt company (also known as the International Business Company), the Foreign Company, the Limited Life company, and the Hybrid company. All the companies can be limited by share or guarantee.
An existing overseas company may transfer its domicile to the Turks and Caicos Islands where the laws of the overseas country do not prohibit such a transfer. A Turks and Caicos company can transfer its domicile to an overseas country where the overseas country laws allow for such a transfer. Once a company is redomiciled to the Islands it is deemed to have been incorporated there under the 1981 Companies Ordinance.
The companies registry offers same day clearance of names, same day registration and extremely competitive registration rates. All names of companies require the prior approval of the Financial Services Commission to ensure that no name gives the impression of providing a public financial service without due licensing.
The law on ultra vires need not apply to Turks and Caicos Islands companies since there is no requirement under the Ordinance for a company to have an objects clause in its Memorandum. The legal consequence of this provision is that if no objects are specified then the company has power to carry on any business not prohibited by law.
There is no distinction between a private and public company under the law. However the shares of an exempted company cannot be offered to the public unless a prospectus is approved by the registrar of companies.