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 Stages and Timelines

Establishing a local company (Local Company) in the Turkish Republic of Northern Cyprus (TRNC) means creating a full-fledged legal entity operating under TRNC law. Unlike offshore structures, this form of organization allows you to conduct business directly on the island, hire staff, enter into contracts with local partners, acquire real estate on the company’s balance sheet, and purchase movable property within permitted limits.

Status and Advantages of a Local Company

Registering a business opens 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 Companies Registry;
• Obtaining a tax number and registration with social security funds.

Participation of Foreign Founders

TRNC law allows foreign citizens to be shareholders and directors of companies. However, strict industry-specific restrictions exist.

Important: In strategic sectors such as construction, real estate operations, or car rentals, the law requires that 51% of shares belong to a TRNC citizen or that they hold a director position. Some types of activities may be completely closed to 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 process, the founder must provide:

1. Passport. Valid international passport.
2. Certificate of No Criminal Record. Original from the country of citizenship.
   • If you have legally resided in the TRNC for more than 5 years, a local police certificate is accepted.
3. Registered Office Address. Office lease agreement.

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

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

Registration Stages and Timelines

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

• Step 1: Name Approval.

  The most unpredictable stage. Checking the uniqueness and acceptability of the name can take up to 15 working 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 Companies Registry, Tax Office, and Social Security.
• Step 4: Activation. Unlocking the share capital and commencing operations.

Professional support by DeJure for setting up a local company. Full range of services for registering a legal entity (Local Company) in the TRNC: from drafting the Articles of Association and addressing the 51% rule 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