Turks and Caicos: E-Commerce

Back to Turks and Caicos Information: Business, Taxation and Offshore

On this Page:

- Turks and Caicos Introduction
- Turks and Caicos Offshore Activities
- Turks and Caicos Case Studies

Turks and Caicos Introduction

In January 2006, Cable and Wireless (now called Lime) yielded to pressure by giving up the last six years of its monopoly in the Islands, and signed a new 15-year license agreement under the Telecommunications Ordinance 2004 and the Telecommunications and Frequency Licensing Regulations 2005. C&W has put a brave face on the loss of its monopoly, and congratulated the government on its liberalized regime.

Communications Minister, McAllister Hanchell, said that the liberalisation would see more players enter the market and boost access to communications services.

The first of these new players was Digicel, the pan-Caribbean mobile telecommunications firm, which announced in April 2006 that it had been granted a license to establish a GSM cellular network in the jurisdiction. Licences have also been awarded to Andrews Communications Ltd, and Islandcom.

Commenting on the move, Jeffrey Hall, Turks & Caicos Minister of Communications, stated that: “We welcome Digicel and its dynamic approach to business in Turks and Caicos. The benefits Digicel has created in other Caribbean markets will help bring cutting edge technology to the telecommunications sector, while making a significant contribution towards the development of our tourism, financial services and local businesses."

The government is encouraging information technology operations and there is clear interest being shown in offshore e-commerce development.

In 2004 the government formed a TCI Telecommunications Commission as part of a drive to implement and oversee changes in the modernising of the telecommunications industry including the introduction of competition in the domestic market.

The Telecommunications Commission carries out the functions conferred on it by the Telecommunications Ordinance 12 of 2004. It serves to advise the Minister on telecommunications; regulate telecommunications in the Islands; promote effective and sustainable competition in telecommunications; set standards for the quality of telecommunications services; promote the interests of consumers and to encourage licensees to operate efficiently; publish information, reports or other documents; carry out investigations and hold enquiries; and police anti-competitive practice or behaviour.

See below for specific information on e-commerce in Turks & Caicos, or go to Offshore-e-com.com for an extensive analysis of the commercial possibilities and the legal background.

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Turks and Caicos Offshore Activities

The natural bonding of the Internet and Offshore stems from the fact that both, of their nature, manage to avoid tax. Businesses which can operate on the Internet without, so to speak, touching ground in a high-tax jurisdiction will naturally migrate to offshore jurisdictions; while businesses that already have offshore existence will find it highly convenient to be able to use the Internet to trade with their high-tax customers without having to make a landing in their countries.

As a major offshore jurisdiction with tens of thousands of offshore enterprises already installed, including many trading companies, it is only a matter of time before the Turks and Caicos Islands becomes a centre of e-commerce activity. The islands' geographical location, good telecommunications links, sophisticated business infrastructure and the low-cost, English-speaking, highly-educated work-force are all factors which will attract the sales, marketing and administrative departments of retail operations, particularly those trading into North and South America.

By locating websites in Turks and Caicos to carry out functions previously based in high-tax jurisdictions such as sales and marketing, treasury management, supply of financial services, and most of all, the supply of digital goods such as music, video, training, software etc, businesses can take advantage of low rates of taxation for increasingly substantial parts of their operation.

In many countries, the distribution of goods from a warehousing facility does not constitute the carrying on of a trade or business in that jurisdiction, so that even for physical goods, in many case it will be possible to avoid a permanent establishment (taxable presence) altogether in many high-tax jurisdictions where trading activities currently take place.

For information about the impact of e-commerce on a number of the main offshore activities which take place on the island, click on a link below to go to our specialist E-commerce site Offshore-e-com.com

Sales and Distribution of Physical Products
Sales and Distribution of Digital Products
Banking and Financial Services (including Investment Funds)
Corporate Support Functions

To see an analysis of the current state of legal and tax issues surrounding offshore e-commerce, click here.

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Turks and Caicos Case Studies

This section will contain case studies of e-commerce solutions applied to offshore business activities carried out from the Turks and Caicos Islands. The case studies will be developed in association with partners. Contact us to learn more.

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