TURKS & CAICOS Law and Practice Contributed by: Christopher Smith, Dentons Turks and Caicos
5.4 Minimum Capital Requirement There are no minimum capital requirements for a com - pany. 5.5 Applicable Governance Requirements The company will typically have one or more directors who manage the day-to-day business of the company. The constitutional documents set out the governance framework, along with the Companies Act (as revised). 5.6 Annual Entity Maintenance and Accounting Compliance Companies incorporated in the Islands are obliged to pay annual fees, which typically amount to USD2,000 to USD2,500, inclusive of the company agent and government fees. This includes filings pertaining to beneficial ownership and economic substance. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time A person or company wishing to occupy another par - ty’s real estate for a limited period may do so by con - tractual licence with the owner or, more commonly, by entering into a lease. 6.2 Types of Commercial Leases Given the size of the jurisdiction, there are no specific different types of leases. 6.3 Regulation of Rents or Lease Terms Rents and lease terms are freely negotiable. Certain landlord and tenant covenants are implied in a lease by Sections 52 and 53 of the Registered Land Act, unless otherwise expressly provided for in the lease. 6.4 Typical Terms of a Lease The tenant is typically responsible for repairing the demised premises, and the landlord is usually under obligation to insure and maintain the building and the common parts, and will usually recover these costs from the tenant in addition to the rent. Rent is commonly paid monthly, in advance or arrears.
Enforcement of Restrictions on Development and Designated Use Where any development of land (other than mate - rial changes in use) has been carried out without the applicable planning permission or not in compliance with any conditions attached to a grant of planning permission, the director of planning may, within six years of the alleged breach, serve an enforcement notice on the owner or occupier of the land. Non-compliance with an enforcement notice is an offence and attracts a fine. If the steps required to be taken by the enforcement notice are not carried out within the allotted period, the director of planning may enter the property and take those steps, and may recover the costs as a debt from the owner of the land. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Title to real estate must be held by a Turks and Cai - cos limited liability company or by a natural person, although the upstream ownership structure is not regulated. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity The constitutional documents of a company incorpo - rated in the Islands will set out its governance frame - work, including the powers of its board of directors, who ordinarily manage the day-to-day operation of the business. In relation to a company incorporated as a company limited by shares, the liability of its share - holders is limited to the amount (if any) unpaid on their shares. 5.3 REITs Due to the relatively small size of the Islands’ real estate market, it is generally not common to see large portfolios of real estate held by REITs. Real estate can be held by a trustee or multiple trustees on behalf of the underlying trust, and foreign investors would be able to participate in such arrangements.
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