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Registration of a Company with Foreign Capital in Northern Cyprus

The beneficial geographic location of the Turkish Republic of Northern Cyprus (TRNC) at the crossroads of the important trade junctions of the three parts of the world, Europe, Asia, and Africa, offers tremendous opportunities to foreign investors. The economy of the republic has been growing at a quick pace recently (more than 5% a year). The TRNC government creates the most favorable conditions for investors from abroad by reforming the taxation system and offering different benefits. Registration of a company with foreign capital in Northern Cyprus is a profitable solution for those who want to expand their business horizons.

Company registration in North Cyprus

Advantages of Establishing a Company in Northern Cyprus

The Cypriot authorities provide a convenient system of discounts and benefits for business people from other countries. If you import transport and office equipment in the TRNC territory, you will pay a customs duty of just 3.5%.

Advantages of company registration in Northern Cyprus:

  • Stable currency. The local currency is subject to minimal fluctuations thanks to the active support provided by Turkey.
  • Straightforward company registration process. If you delegate the procedure to professionals, you will be able to establish a Cypriot company with minimum effort.
  • Tax benefits. In some cases, the corporate tax rate may amount to 0%.
  • A possibility to open currency accounts. The owner of a personal or corporate account in a TRNC bank can access his or her funds from anywhere in the world.

Companies in Northern Cyprus can make cash and cashless settlements without strict control on the part of the local fiscal authorities. A simplified system of financial monitoring and tax accounting minimizes the risks of accounts blocking and reduces the document flow.

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LTD Registration in Northern Cyprus 

We offer assistance in setting up an LTD (LLC, Limited Liability Company) with foreign capital.

Advantages of the solution:

  • A possibility to work in the TRNC internal market without limitations
  • Easy deposit and withdrawal of funds to/from LTD accounts
  • Receiving services in the subsidiaries of Turkish banks (SWIFT, IBAN)
  • Obtaining work visas for all company employees
  • A possibility to qualify for permanent residence after 6 years of residence in TRNC
  • A possibility to acquire citizenship after 10 years of work
Organizational and legal formLTD (Limited Liability Company) 
Minimum number of co-owners2
Mandatory full-time positions in the companySecretary, Director
Authorized capital25,000 euros. 100% of the authorized capital is blocked in the bank for the period of company establishment (for 2–4 weeks)
Place of registrationActual legal address
LimitationsYou cannot buy residential or commercial real estate in the territory of TRNC
Limitations by types of activitiesTourism, construction, medicine, sale of real estate, currency exchange, factoring

Here are the documents you will need to submit:

  • An apostilled certificate of no criminal record
  • IDs (passports) of all LTD founders
  • Proof of the place of residence (in this case, you must have a place of residence in TRNC)
  • A bank statement that confirms blocking funds in a Cypriot bank which equal the amount of the company’s authorized capital

You should also get a letter of guarantee from the bank in the name of the LTD’s director for the amount of 10 minimum monthly wages. The letter must be valid for two years.

Peculiarities To Be Considered

We recommend taking into account some peculiarities of the Articles of Association before you register a company with foreign capital in Northern Cyprus. When you are drafting the main corporate document, make sure to include all kinds of activities that the organization is planning to engage in. This is very important as you will need a court decision in the future if you need to amend this clause. You will be able to add or remove this or that activity only subject to receiving a positive decision from the court. In addition, keep in mind the kinds of activities that are prohibited for companies with foreign capital (construction, medicine, etc.).

In some cases, you will need the presence of a TRNC citizen who possesses a 51% share of your LTD to operate in this or that sphere. The ratio of the founders’ shares is 90% at the most and 10% at the very least.

The general agreement must contain information about the maximum number of the company’s directors and the minimum percentage of votes required to replace one of them.

Stages of company registration in Northern Cyprus:

  1. Checking whether the name you have selected is unique.
  2. Elaboration of corporate documents (Articles of Association and General Agreement).
  3. Receiving letters from banks.
  4. Preparation of the remaining documents and submission of a full package of documents to TRNC registration authorities.
  5. Payment of duties and levies.
  6. Receiving the company’s constituent documents.
  7. LTD registration with tax authorities.
  8. Opening a bank account with a local credit and financial institution. 
  9. Obtaining a permit (the license is paid for separately) for the main type of LTD’s activity.
  10. Recording the company data in the municipal register.
  11. Recording the company data in the register of the Ministry of Labor and Pension Fund.

The cost of company registration in Northern Cyprus is GBP 4,000.

We also provide the services of LTD support:

  • Outsourcing your accounting. Submission of monthly reports to the tax authority.
  • Tax consultant’s services. 
  • Consulting on the questions of obtaining licenses and business management.
  • Obtaining business visas.
  • Printing of invoices and credit receipt vouchers. 
  • Installation of cash registers. 
  • Receiving a permit to display a company sign. 

Company Maintenance Expenses

Monthly expensesAnnual expenses
Accounting services, nominee founderExtension of licenses
Payroll taxes (social insurance, pension fund)Permits from municipal authorities to hang a sign and rent an office
VAT (from 5 to 20% depending on the type of goods or services) Obtaining (extension) of a business visa for directors and founders
 Obtaining (extension) of work visas for employees
 Payment of an income tax (23.5%)

Cost of Services

Consulting on company registration600 EUR
Pre-registration services1200 EUR
LTD registration in TRNC4000 GBP
Accounting1200 EUR a month
Services of a trust manager 1200 EUR a month
Fee for a residence permit (Famagusta, Guzelyurt, Iskele, Bafra)600 EUR

How to Register a Company with Foreign Capital in Northern Cyprus

If you are interested in an opportunity to live and work in one of the picturesque European countries with favorable conditions for foreign investors, please write to our experts right now!

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