Establishment of a local company in Northern Cyprus

How to Open a Local Company in Northern Cyprus?

• Status and Advantages of a Local Company
• Participation of Foreign Founders
• Required Document Package
• Registration Steps and Timelines

Establishing a local company (Local Company) in the Turkish Republic of Northern Cyprus (TRNC) means creating a fully recognized legal entity operating under TRNC law. Unlike offshore structures, this type of company allows commercial activity directly on the island, hiring staff, signing contracts with local partners, and acquiring real estate under the company’s name.

Status and Advantages of a Local Company

Registering a business provides access to the banking system and tax residency. Our “turnkey” service includes not only bureaucratic procedures but also strategic planning:

• Consultations on corporate structure and taxation;
• Drafting the Articles of Association and preparing shareholder resolutions;
• Interaction with the Registrar of Companies;
• Obtaining a tax number and registration with social security funds.

Participation of Foreign Founders

TRNC law allows foreign nationals to be shareholders and directors of companies, but strict sector-specific restrictions exist.

Important: In strategic sectors such as construction, real estate, or car rental, the law requires that 51% of shares be owned by a TRNC citizen or that a TRNC citizen serve as a director. Some activities may be completely restricted for foreigners.

We conduct a preliminary analysis of your business model to determine whether a local partner is required.

Required Document Package

To start the registration procedure, the founder will need:

1. Passport. A valid international passport.
2. Criminal Record Certificate. Original from the country of citizenship.
   • If you have legally resided in TRNC for more than 5 years, a local police certificate is accepted.
3. Legal Address. Office lease agreement.

   Note: The premises must have commercial property status. Registration in residential apartments is not allowed.

4. Proof of Residence. Certificate from the Mukhtar (district head) confirming the founder’s actual place of residence.
5. Bank Account. Required for depositing and temporarily freezing the company’s share capital during registration.

Registration Steps and Timelines

Incorporation in Northern Cyprus is not instantaneous and typically takes 2 to 4 months. The procedure is divided into four steps:

• Step 1: Name Approval (Naming).

  The most unpredictable stage. Checking the uniqueness and acceptability of the name may take up to 15 business days. We recommend preparing 3–5 name options in advance.

• Step 2: Document Preparation. Drafting the Articles of Association and memorandum in Turkish.
• Step 3: Submission to Authorities. Registration with the Registrar, Tax Office, and Social Security.
• Step 4: Activation. Unlocking the share capital and commencing operations.

Professional assistance from DeJure in establishing a local company. A full range of services for registering a legal entity (Local Company) in the TRNC: from preparing the Articles of Association and resolving the 51% rule issues to obtaining a tax number.

Murad Gasym-zade

co-owner

REAL ESTATE Specialist in Northern Cyprus

Phone

+905391190555

Email

[email protected]

Book a call

Book a call

Leave a request and receive expert assistance from our specialist.

Submit