North Cyprus Company Formation
Limited Company by Foreigner
You may want to establish a limited liability company in order to do business in North Cyprus as a non citizen, encompass a partnership under one roof or simply institutionalise your business.
We can help you in North Cyprus company formation regardless of whether you are a citizen or not.
Minimum Initial Investment
When non-citizens are going to be shareholders of a TRNC limited liability company, the company is required to have at least 100,000 USD worth of capital. The amount of capital of a company is the amount that the shareholders would inject into the company at the point of establishment of the company or later.
Capital Investment for Citizens
When non-citizens are going to be shareholders of a TRNC limited liability company, the company is required to have at least 100,000 USD worth of capital. The amount of capital of a North Cyprus company is the amount that the shareholders would inject into the company at the point of establishment of the company or later.
Percentage of Shareholding
The percentage of the shareholding by each shareholder can be arranged as the shareholders see fit. If you decide to have another shareholder who is a citizen, in order for the non-citizen shareholder to pay much less capital upfront, his/her amount of shares could be kept at a minimum, holding a small percentage of the company.
Governance and Profit
The voting rights for the governance of the company and eligibility to acquire profit could be arranged.
Tax Guarantee Requirement
Apart from the above, the Tax Office will require a guarantee from the non-citizen shareholders regarding his/her tax liabilities. This is done either by providing personal guarantees from two citizens that are civil servants/persons with clean tax records that the tax office may accept or alternatively by depositing an amount of money in a local bank account for the duration of 18 months and blocking the same for the benefit of the tax office. The amount is generally set on a percentage of the capital of the company. Tax Office may request approximately 10% of the capital of the company. At the end of the 18 month period the duration must be prolonged as long as the company is active.
Official Leave
The Companies Registry will also require leave from the ministry for a non-citizen to hold shares in a company. In order to obtain this leave, the non-citizen shareholder will require a document from his/her native country to prove that he/she does not have any previous convictions. This document will need to be thereafter certified internally by the relevant country and then by the TRNC representative office in that country, or if there isn’t any, by the Turkish Consulate.
Business Status Work Permit
Furthermore, If the non-citizen is a director and does not have a residence permit or work permit, he/she will need to acquire a “business” work permit for which the the government fees are higher than normal work permit.
Costs
For an approximate costs and/or investment estimation in respect of North Cyprus company formation please contact us.
Contact Us For Free Consultation
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