Company Registration (Free Port)

How to Register a Company in the Free Zone (Port Area) in Northern Cyprus?

Registering a company in the Free Zone of Northern Cyprus is a strategic choice for businesses focused on international trade. The only active zone of this type is located in the Famagusta port area. It is a separate territory with a unique legal and tax regime designed to promote the export of goods and services outside the TRNC.

Features of the Free Economic Zone (Famagusta)

Companies registered in the Free Port legally differ from standard local companies ("Local Company"). The main distinction is the target market: the activities of a Free Zone resident must be export-oriented rather than aimed at the domestic market.

Note: Doing business with TRNC residents is possible, but in this case the company loses some tax benefits and falls under standard regulations.

Tax Incentives and Advantages

Free Zone residency provides investors with significant fiscal and operational benefits:

  • 100% foreign ownership. Unlike many local business sectors, a local partner is not required.
  • Tax optimization. Zero VAT rate for foreign trade activities.
  • Customs benefits. Simplified procedures and no duties on equipment imported for use within the zone.
  • Infrastructure. Access to rent production facilities, warehouses, and offices directly in the port area.

Founder Requirements

Both foreign individuals and legal entities can register a company in the Free Port. There are no citizenship restrictions, provided the compliance (due diligence) procedure is completed. The key requirement is that the business model complies with the zone’s rules (export, transit, production for export).

Registration Process and Timeline

Opening a Free Zone company is more complex than a standard company, as it requires approval from the Free Zone Council. The process usually takes 2 to 4 months and includes:

  1. Analysis of the business plan for compliance with zone requirements.
  2. Submission of the application and obtaining approval from the Free Zone Council.
  3. Drafting the Articles of Association and preparing the incorporation documents.
  4. Registration with the Registrar of Companies and opening a corporate bank account.
  5. Selection of premises (mandatory) and signing a lease within the zone.

De Jure Consulting lawyers assist clients at every stage: from application submission to obtaining a tax number and hiring personnel.

Elvina Sabirova
Elvina Sabirova
Licensed Lawyer
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