Business in Northern Cyprus
Why register a business in Northern Cyprus?
One of the main reasons why many people strive to start their business in TRNC is the flexible tax policy. Foreign investors and businessmen are provided with many benefits and bonuses, including a reduction in customs duties when importing cars, office equipment, and other goods. Other advantages include:- Simple business registration procedure;
- Prospects for economic development, and therefore for one’s own business;
- Protection of property at the legislative level;
- A range of measures for protecting private information and confidentiality in business dealings.
What is required to register a business?
The Registration Committee, located in Nicosia, handles the documentation process. To open a business, you need to apply through a “single window” with the following set of documents:
- Copies of the passports of the company’s founders;
- Certificates of no criminal record;
- Memorandum and Articles of Association translated into Turkish;
- Documents confirming the presence of a bank account containing the share capital;
- Several original company name options must be proposed.
The registration fee for a company is approximately 2.5 thousand euros. Additionally, services of a notary public will cost around 1.1 thousand euros. The annual license renewal will cost around 5 thousand euros.
Capital Requirements
If less than 49% of the company’s shares are owned by a non-resident of the country, the capital requirement is $25,000. However, if the entire package of shares is owned by residents, the capital requirement increases to $50,000.
The amount is kept in a frozen account for 2-3 months after the business registration. After the period, the funds can be used.
If you are a non-resident and will hold a managerial position, the tax fee will be $10,000. On the other hand, if a resident of TRNC holds a managerial position, the tax fee is $5,000.
Our company provides legal and financial services and will easily assist our clients in opening a firm in Northern Cyprus!
For consultation, please contact us at info@everhome-invest.com.
