The Legal System

• Published date: 06 October 2022
• Subject Matter: Corporate/Commercial Law, Technology, Securities, Fin Tech
• Law Firm: Griffiths & Partners
• Author: Griffiths & Partners

The Turks and Caicos Islands ("TCI") is a British Overseas Territory whose legal system is a combination of ordinances, English statutes, and common law. The judiciary replicates that of England as the highest court with the Supreme Court, replicating the High Court. TCI has its own body of case law however the majority case law cited are English.

The TCI legislative framework is rapidly developing to meet the expectations of market participants. As the TCI is in close proximity to North America and uses the US dollar, this attracts and facilitates high-impact and transformative private investments, both local and foreign, and a robust services infrastructure. The domestic economy enjoys one of the fastest growth rates in the Caribbean with a stable and strong Government.

Businesses operating in the TCI are regulated by the Financial Services Commission ("FSC"), which is the government body responsible for the policies and procedures as it relates to companies. The FSC oversees all regulatory aspects of the TCI financial services industry. There is also Invest Turks and Caicos Islands Agency ("Invest TCI"), which is a statutory body that facilitates investment enquiries and provides a framework for encouraging, prioritising and incentivising domestic investments and foreign direct investments ("FDI"). Invest TCI is wholly funded by the Government of the TCI but is governed by a Board of Directors made up of representatives from public and private sectors.

Investments

During the COVID-19 pandemic FDI worldwide decreased dramatically. This decline had a drastic impact on developing countries such as TCI. Notwithstanding a global decline in FDI, over the past two years the TCI has made a rebound in the FDI market, having one of the fastest growth rates in the Caribbean. The TCI is a tax-neutral jurisdiction that allows for investors to the global tax transparency standards.

How is it beneficial for direct and foreign investors?

The majority of the investments in the TCI are completed through Invest TCI, which undertakes to develop the TCI by attracting FDI, encouraging trade and investment, supporting, and promoting domestic investment and facilitating public and private partnerships. The TCI offers many opportunities for investors, foreign and domestic, including the opportunity to leave a footprint and impact, ranging from different business ventures, real estate opportunities and lasting relationships within the community.

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