Banking business is defined under the Banking Ordinance 1998, as amended (“the Banking Ordinance”) Section 2 as the business of accepting deposits, and employment of those deposits by any means at the risk of the person accepting those deposits. Anyone carrying on activities defined as banking business in the islands must be licensed to do so. Applications for banking licences must be submitted to the Commission for approval.

There are two types of banking licences that may be granted under the Banking Ordinance:

  1. National Banking Licence: This licence authorizes the licensee to carry on banking activities in and from the Islands with islanders (or “Belongs,” as defined by the Immigration Ordinance) and other residents who are ordinarily or temporarily resident in the Islands. Holders of the licence must typically maintain their head office within the Islands.
  2. Overseas Banking Licence:This authorizes the licensee to carry on banking activities from within the Islands but specifically excludes banking business with any person who is ordinarily or temporarily resident in the Islands. This type of licence may be granted to financial institutions who do not maintain their head office in the Islands, provided that the banking activities carried on from the Islands are managed by either another licensee who maintains a principal office in the Islands or approved person who is resident in the Islands.

Turks and Caicos Islands Banking Licence Key Features

  1. Applications for licences must be accompanied by memorandum and articles of association or similar, a business plan and any other documents which are deemed necessary.
  2. Changes in either the constitution or activities of the business from those submitted with the original application must be declared.
  3. A financial institution may hold both types of banking licence provided that separate accounting records are maintained or business activities under each licence is conducted through separate branches or subsidiaries
  4. The Banking (Capital) Regulations 2003 (“the Capital Regulations”) made under Sections 9-13 of the Banking Ordinance define the minimum capital requirements for licences carrying on banking business in or from within the Islands.
  5. Holders of a banking licence are required under Section 29 (1-6) of the Banking Ordinance to file monthly and quarterly returns with the FSC.

Turks and Caicos Islands Banking Licence Legal Requirements

Turks and Caicos Islands Banking Licence

Description

General

  • Corporate  vehicle permitted

Turks and Caicos Islands Company

  • Local physical office required

No

Share capital or equivalent

  • Minimum paid up capital

USD 100,000

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

Yes

Accounts

  • Requirements to File

Yes

Turks and Caicos Island Banking Licence Tax Treatment

There is no capital, value added or inheritance taxes in Turks and Caicos Island, nor any stamp or document duties except in respect of Turks and Caicos Island real property. 

Duration to Set Up

3 months

Turks and Caicos Island Banking Licence Distinctive Benefits

  • There is no capital, value added or inheritance taxes in Turks and Caicos Island,
  • There is no stamp or document duties except in respect of Turks and Caicos Island real property.
  • A financial institution may hold both types of banking licence provided that separate accounting records are maintained or business activities under each licence is conducted through separate branches or subsidiaries
  • Turks and Caicos Island is a favorable offshore jurisdiction with favorable economic and political stability

Why US (Key Strengths)

  1. We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances.
  2. Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
  3. We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly.
  4. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
  5. We have a full in-house compliance support for all compliance requirements with the regulator and service providers