Registering a Company with Foreign Investment in Northern Cyprus

The Turkish Republic of Northern Cyprus (TRNC) enjoys a strategically advantageous geographic location at the crossroads of Europe, Asia, and Africa. The economic growth of TRNC has been increasing by more than 5% annually. Such rapid development of the region has created significant opportunities for foreign investors. The TRNC government has been actively trying to attract foreign capital. These efforts have included reforming the taxation system in the country and creating various incentives for business owners from other countries. Registering a company with foreign capital in Northern Cyprus presents a lucrative opportunity for business expansion.

Advantages of Establishing a Company in Northern Cyprus

There is a range of discounts and benefits specifically designed for international entrepreneurs. For example, importing motor vehicles and office equipment into TRNC incurs only a 3.5% customs duty, making it economically attractive.

Essential Benefits of Company Registration in Northern Cyprus Include:

• Stable Currency: Minimal currency fluctuations due to robust support from Turkey.
• Efficient Registration Process: Establishing a company is straightforward (especially if handled by professionals).
• Tax Advantages: In individual cases, the corporate tax rate can be as low as 0%.
• Flexibility in Banking: Entrepreneurs can open personal or corporate accounts and access their funds globally.

Companies operating in Northern Cyprus benefit from lenient financial monitoring and tax accounting systems. The simplified regulatory environment reduces the likelihood of account blockages and decreases the paperwork burden.

Registering an LTD in Northern Cyprus

Setting up an LTD can offer several significant benefits for doing business in the region. Our team of experts is ready to provide comprehensive assistance in establishing an LTD (Limited Liability Company) with foreign capital in the Turkish Republic of Northern Cyprus (TRNC).

Advantages of Establishing an LTD in Northern Cyprus:

• Unrestricted Access to Local Market: free operations within TRNC;
• Fluidity of Funds: easy deposits and withdrawals from the company accounts;
• Banking Services: access to subsidiaries of Turkish banks, SWIFT, and IBAN systems;
• Visa and Residency Benefits: the potential to qualify for permanent residence after six years and citizenship after ten years of working in TRNC.

An investor should make note of some crucial legal regulations and market restrictions in registering this type of company. The table below sums up the essential organizational and legal details:

Documentation Required for Registration

Here are the documents required for the LTD setup:

• Criminal Record: An apostilled certificate of no criminal record for all founders.
• Identification: IDs (passports) of all LTD founders.
• Proof of Residence: A document confirming a place of residence in TRNC.
• Financial Proof: A bank statement verifying that the required authorized capital amount has been blocked in a Cypriot bank.

Additionally, the applicant must obtain a bank letter of guarantee in the name of the LTD director for the amount of 10 minimum monthly wages, valid for two years. That ensures financial security and compliance during the initial setup phase.

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

Before registering a company with foreign capital in Northern Cyprus, you should study the legal peculiarities concerning corporate documents. Also, market sector limitations apply in some cases. If you are not completely confident about the requirements, we strongly advise you to get expert support.

1. Name Verification: Ensure the selected company name is unique.
2. Document Preparation: Draft corporate documents, including the Articles of Association and General Agreement.
3. Bank Correspondence: Obtain necessary letters from banks.
4. Document Submission: Prepare and submit the full package of documents to TRNC registration authorities.
5. Duties and Levies: Pay the required fees.
6. Constituent Documents: Receive the official incorporation documents.
7. Tax Registration: Register the LTD with the local tax authorities.
8. Bank Account Opening: Set up a bank account with a local financial institution.
9. Activity Permit: Obtain a permit for the company’s primary activity (license fees are additional).
10. Municipal Registration: Record company data in the municipal register.
11. Labor and Pension Fund Registration: Enter company data in the Register of the Ministry of Labor and Pension Fund.

Costs and Support Services

The cost of registering a company in Northern Cyprus is approximately GBP 4,000. Our team offers comprehensive LTD support services, including:

• Accounting Outsourcing: Handle monthly report submissions to the tax authority.
• Tax Consultation: Access professional advice on tax matters.
• Business Consulting: Get guidance on license acquisition and business management.
• Visa Assistance: Facilitate the obtaining of business visas.
• Financial Documentation: Manage the printing of invoices and credit receipt vouchers.
• Equipment Setup: Install cash registers.
• Permit Assistance: Acquire permits for displaying company signage.

These services are designed to streamline establishing and managing your LTD in Northern Cyprus, ensuring compliance and operational efficiency.

Expenses Involved in Company Maintenance

Below is a table detailing monthly and annual expenses associated with running a company:

Registering a Company with Foreign Capital in Northern Cyprus

If you are looking to live and work in a scenic European country that offers favorable conditions for foreign investors, do not hesitate to reach out to our experts today.