TURKS & CAICOS Law and Practice Contributed by: Sophie Stanbrook, Sam Kelly and Davanya Deveaux, Stanbrook Prudhoe
Stanbrook Prudhoe Third Floor Graceway House Graceway Plaza Providenciales Turks and Caicos Islands Tel: +1 649 946 4300 Email: contact@spcaribbean.com Web: www.spcaribbean.com
1. Legal System and Regulatory Framework 1.1 Legal System
ance Act and National Health Insurance Act, which relate to the mandatory payment of insurance and health insurance for employed persons in the TCI. 1.2 Regulatory Framework for FDI While there is no legislation which restricts foreign direct investment (FDI), the statutory body, Invest Turks and Caicos (“Invest TC”), facilitates FDI by advising on available TCI government concessions (which, if available, are usually granted following the entry into of a Development Agreement pursuant to which a Development Order would be granted), and the entering into of Immigration Protocol Documents (to streamline the process of obtaining work permits for expatriate staff). In addition, where an investor is seeking TCI government concessions related to its proposed investment, Invest TC has a mandatory due diligence process for FDI, the aim of which is to ensure compliance with AML and KYC regulations, and the viability of the proposed investment/development. Depending on the nature of the proposed investment/ development, the due diligence may require input from specific governmental departments or organisations. There are a number of business categories that have been designated as “reserved” and require major - ity Turks and Caicos Islander ownership under the Business Licensing Regulations (foreign investors may therefore only own up to 49% of a business in a designated reserved category). Reserved business categories include (among others) auto dealerships, real estate agencies, property management, and retail and wholesale businesses.
The Turks and Caicos Islands (TCI) is a British Over - seas Territory, and its laws are largely influenced by English law. The TCI has a common law system with its sources of law, namely the Constitution of the TCI, primary legislation in the form of Acts passed by the House of Parliament, secondary legislation in the form of regulations, orders, and statutory instruments, and case law. The judicial structure of the TCI comprises three court levels, namely the Magistrate’s Court, the Supreme Court, and the Court of Appeal. Other specialist courts include the Labour Tribunal and the Coroner’s Court, which have jurisdiction over specific areas of law. The final court of appeal for the TCI is the Privy Council in London. For businesses operating in the TCI, the Business Licensing Act (Cap 17.02) and Business Licensing Regulations govern the issuance of licences to carry on business. Any other legislation and regulatory body responsible for governing and regulating a business will depend on the legal structure and the category/ sector of the business. General pieces of legislation that businesses should bear in mind are the Employ - ment Act, which establishes the laws and rules per - taining to employing and remunerating staff, the Immi - gration Act as it relates to the process of obtaining work permits where necessary, and the National Insur -
636 CHAMBERS.COM
Powered by FlippingBook