In 2024, the Turkish Republic of Northern Cyprus is quickly becoming a hotspot for international business registrations. Its dynamic economy and numerous administrative perks are drawing entrepreneurs from all corners of the globe. If you're looking to register an international company in this thriving jurisdiction, International Wealth is here to help with document preparation and all other essential matters.

Northern Cyprus: a Mediterranean oasis for business and investment

Northern Cyprus is perfectly situated at the crossroads of Europe, Asia, and Africa. The country offers businesses easy access to a multitude of markets, and its convenient location makes Northern Cyprus an attractive base for international operations.

The jurisdiction provides numerous advantages. The local government actively seeks to attract foreign direct investment, driving economic growth. Companies here benefit from substantial state support.

The island's stunning sandy beaches, rich cultural heritage, beautiful landscapes, and Mediterranean climate draw large numbers of tourists, fueling the sector’s growth and creating numerous business opportunities in the service industry.

The local workforce is well-trained and multilingual. In addition to Turkish, many residents speak English fluently, which is a legacy of Cyprus's history as a British colony.

Northern Cyprus's real estate market is diverse. It offers a range of commercial and residential properties for rent or purchase.

With a low profit tax rate and no inheritance tax, the local tax system is particularly appealing to international entrepreneurs.

High living standards and the possibility of qualifying for a business visa make this beautiful Mediterranean island an enticing option for relocation.

International companies and transnational corporations: how it all works in Northern Cyprus

International companies operate across borders. They establish subsidiaries and branches worldwide, and these are all coordinated from central headquarters. The above subsidiaries work in harmony, which results in smooth operations across different regions.

Transnational corporations, a specific type of international company, often set up manufacturing facilities in various countries. While these entities enjoy access to a wide array of national markets and growth opportunities, they also face political instability, administrative changes, currency fluctuations, customs restrictions, and other challenges. Despite them, international companies grow and succeed by reaching into different markets around the world.

In Northern Cyprus, establishing an international company usually involves a Limited Liability Company (LTD) formation. This requires at least two owners, along with the appointment of a company director and a company secretary to handle key administrative roles.

The company must have an authorized capital of EUR 20,000, which is held in a bank account during the registration process, lasting between two to four weeks. The company also needs a nominal legal address for official registration purposes.

Businesses incorporated in Northern Cyprus under this structure are authorized to engage in a wide range of activities, including import and export operations, IT services, consulting, tourism, online tutoring, online trading, advertising, and more.

Northern Cyprus: ideal location for your international company

Registering an international company in Northern Cyprus offers compelling advantages for global business operations. One standout benefit is the tax-exempt status of dividends. They may be freely transferred to any country, which means significant flexibility for shareholders. With no restrictions on international business activities, companies in Northern Cyprus enjoy seamless cross-border operations.

Corporate bank accounts in Northern Cyprus allow for unrestricted incoming and outgoing payments. The presence of Turkish bank branches further improves financial operations with a variety of instruments like SWIFT and IBAN.

The favorable tax environment is another major draw. Businesses in Northern Cyprus are exempt from VAT and corporate income tax, with a profit tax rate as low as 1%. There is no residency requirement for company owners and directors, providing greater management flexibility. The process of hiring and firing directors is clearly outlined in the company by-laws.

Setting up international companies in Northern Cyprus: required documents

To register an international company in Northern Cyprus, you'll need to gather several key documents. These include personal identification documents for the company founders, typically passports, and apostilled police clearances to verify their legal standing. Proof of address, such as utility bills, is also required.

In addition, you'll need letters of recommendation from both a bank and a lawyer to support your application. The founders must also submit their résumés. Finally, a receipt from a local bank confirming the deposit of the authorized capital is necessary to complete the registration process.

Steps to register a company in Northern Cyprus

To successfully finalize company registration in Northern Cyprus, be sure to follow these steps:

1. Choose a Unique Company Name: Ensure it meets all regulatory requirements.

2. Prepare Statutory Documents: Gather all necessary legal documents.

3. Acquire Letters of Recommendation: Obtain these from both a bank and a lawyer.

4. Apply for Registration Permission: Submit your application to the Council of Ministers of Northern Cyprus.

5. Submit Application Package: Provide all required documents to the registration authorities.

6. Deposit Authorized Capital: Place the required capital in a local bank and pay the state duties.

7. Obtain Registration Documents: Receive the official documents confirming your company's registration.

8. Pay Registration Fees: Complete the payment of all necessary fees.

9. Register with Tax Authorities: Ensure your company is registered with the Northern Cyprus tax service.

10. Open a Corporate Bank Account: Set up an account with a local bank to facilitate business operations.

Associated fees

NB: Maintaining an international company in Northern Cyprus involves several annual fees to ensure compliance and smooth operations. The primary cost is the international business license fee, which is EUR 13,000 per year. Additionally, there is an annual charge of EUR 11,000 for providing a nominal legal address and accounting services. Beyond these fixed fees, companies are also subject to a profit tax at a low rate of 1%.

International Wealth: your all-in-one solution for business in Northern Cyprus
International Wealth provides extensive support for maintaining your company in Northern Cyprus. Our services include filing monthly tax reports, delivering expert accounting services, and offering tax consultations along with business and licensing advice. If you often think about owning an international business company in Northern Cyprus or need further details, reach out to our seasoned experts for assistance!