How to register a company in North Cyprus and obtain residence

Examination of company registration in North Cyprus

North Cyprus, although a small country, offers a wide variety of job opportunities to foreigners and its citizens. For this reason, company registration in North Cyprus creates an excellent opportunity for investment. One of the critical points for setting up a company in North Cyprus is the amount of initial capital and side costs. Therefore, it is very important to know the cost of company registration in North Cyprus.

Investing and registering a company in North Cyprus according to accommodation facilities

One of the attractive aspects of immigrating to North Cyprus and investing in it is the possibility of obtaining residency for you and your family through a successful investment. By registering a company in this country and following the relevant legal procedures, you can obtain temporary residency for yourself and your main family members.

This stay will be valid as long as you pay the required taxes and insurance premiums and comply with your financial obligations. Note that many applicants for company registration in North Cyprus can apply for permanent residence after a certain period of time. Also, the conditions may allow the conversion of temporary residence to permanent residence.

As it was said, it is possible to obtain residence by registering a company, but obtaining a residence by registering a company depends on many issues, there is no guarantee in obtaining a residence, it is possible for the company registration department to establish a company, but the immigration department has no jurisdiction for any reason. does not confirm you to obtain residence, therefore obtaining residence through company registration is not considered as a definite and guaranteed method of obtaining residence.

Company registration in growing fields and businesses

As a developing country, Northern Cyprus provides many opportunities for investors. By registering a company in this country, you can operate in various fields such as tourism, information technology, and construction, and develop your business with initiative and commitment.

Types of companies that can be established in North Cyprus

For investors, choosing the right type of company is very important. In Northern Cyprus, you can choose from different types of companies:

• Private limited liability company
• Company LLP
• Branch office or agency of other big companies
• Sole traders company
• Partnership or partnership
• Free Zone Company
• International business companies

Private limited liability company

One of the most popular types of companies in North Cyprus is the limited liability company. Most people who decide to register a company in North Cyprus choose this type of company for their investment. These types of companies are established and registered with capital shares. It means that the members of the company have bought their shares by paying amounts.

Therefore, the liability of the members is limited to the minimum possible based on the amount of shares and founding documents. Usually, the number of shareholders in a limited liability company is a minimum of two and a maximum of 50. In addition, it is not possible to offer company shares to the public in this type of company.

Company LLP

Another popular option for registering a company in North Cyprus are joint stock companies. These types of companies in North Cyprus are divided into two general categories: Private limited company and public company. Both of these types of companies are considered popular options for domestic and foreign investment in Cyprus.

Interestingly, there are no restrictions on company registration by foreign investors in Northern Cyprus. However, only lawyers who are licensed by the North Cyprus Bar Association can apply to set up and register a company in North Cyprus.

international company

These types of companies are known as international companies and can operate outside of North Cyprus. They only pay income tax, insurance premiums and employee provident fund shares.

Free Zone Company

Another option for company registration in Northern Cyprus is Free Zone Companies located in the port of Famagusta. This port is known as a commercial center in Northern Cyprus due to its geographical location. One of the great advantages of registering a company in the Northern Cyprus Free Zone is the tax exemption for a period of 15 years, which provides an excellent opportunity to establish and develop businesses. Also, the company registration process in this region is very simple and hassle-free.

Note that to register a company in Northern Cyprus in the Famagusta Free Zone, you must go to the Free Zone Organization. These companies are not subject to corporate tax and value added tax and only have to pay social insurance tax and employee financial contribution.

A tax-exempt partnership or partnership

Companies that do all their administrative and financial work are known as partnerships. An interesting aspect about these types of companies is that they are exempt from paying income tax. In partnership companies, the partners of these companies are responsible for paying taxes on the amount of income they earn from their share in the company’s activities. Also, the profit and loss of the company directly affects them.

Sole traders company for specialized businesses

People interested in trading, manufacturing, agriculture, maintenance, and services can start their business by registering a business in North Cyprus. To register businesses in the field of sole trading, you need to go to the Registrar of Companies.

Sole trader company is a type of individual specialized company, all obligations and responsibilities of which are the responsibility of one person (owner). In this way, the owner is responsible for paying all taxes and internal revenues of her company.

Branch office or agency of other big companies

Foreign companies operating in North Cyprus can establish their branch office without membership. In other words, large global companies are allowed to open branches and just contact the head office. The minimum capital required to set up a branch in North Cyprus is estimated to be approximately US$100,000.

Another low-cost and easy way to register a company in North Cyprus is through the establishment of a representative office. In this method, there is no need to register the initial capital. The representative office affiliated to the parent company is responsible for marketing and sales in Cyprus.

In general, establishing a branch or representative office is one of the best ways to invest in North Cyprus. However, to register a branch office or representative office, you need to obtain permission from the Council of Ministers of Northern Cyprus.

Company registration process in Northern Cyprus

To register a company in Northern Cyprus, you must go through the following steps. It should be noted that any foreign applicant can apply for company registration, but the application registration must be done through a lawyer licensed by the Bar Association.

Choosing a company name: First you need to choose your company name. Choosing a company name should be done according to valid laws. The name of the company is one of the most important factors for the success of the company. If you still haven’t come up with a name, you can check out suggested names online.

Preparation of articles of association and legal documents: articles of association are prepared to determine the company’s members, distribution of shares and responsibility of each member. The memorandum or articles of association must be signed by all members of the company in the presence of at least one witness.

Advice and assistance of an immigration lawyer: It is better to use a licensed immigration lawyer to complete the company registration application form and prepare the necessary documents. A lawyer can also help you in drafting the articles of association.

Completing the company registration application form: An immigration lawyer will help you complete the company registration application form. All information entered in this form must be correct and legal.

Company Registration: After your application is approved, you can register your company at the Registrar’s Office and process the associated fee.

Specify the company address: At the time of registration, you must specify the exact address of your company.

Opening a bank account: You need to open a bank account in Cyprus in order to transfer your company’s capital.

Obtaining the tax code: To obtain the tax code of the company, you must go to the tax office. Also, the insurance code is also received from the insurance office.

Hiring a secretary and accountant: Before hiring other members, hire a secretary for administrative affairs and an accountant for financial affairs of your company.

Company registration rules in Northern Cyprus

One of the reasons why Northern Cyprus is so popular for foreign investment is its low tax rate. In fact, the tax rate of around 12.5% in Northern Cyprus has made the country a gateway to the European market. Northern Cyprus always considers special conditions for investment and company registration by foreign investors in order to maintain its favorable tax regime.

One of the most important components of investment and company registration in this country is initial capital. According to the rules for company registration in Northern Cyprus, any person with the appropriate initial capital can start a company in this country. The minimum initial capital to register a company in this country is 100,000 euros. This amount must be deposited in one of the Northern Cyprus banks and it will not be possible to withdraw money from this account until the company registration is completed.

Company registration conditions in North Cyprus

• Having at least two shareholders
• Hiring a secretary to provide official company documents
• electing at least one person as manager; Each manager must submit his tax security certificate to the registration office.
• Delivery of real address for company registration

All the mentioned conditions are applicable for all types of companies, except for branches of foreign limited companies. An applicant for company registration in this country must comply with several laws, including tax laws, organizational chart laws, employee insurance premium payment laws, and special laws related to each company. In addition, company registration in this country requires at least 3 weeks.

Necessary documents to establish a company in North Cyprus

If you intend to register a company in Cyprus, you must complete the necessary documents. All these documents must be correct and valid; Otherwise, there will be problems in the company registration process. Some of the most important documents required to register a company in this country are as follows:

• Original and copy of valid passport of all directors and shareholders approved by the Companies Registration Office or the Consulate of Northern Cyprus or the Turkish Embassy
• Other identity documents with copies
• New passport photo
• Documents related to educational and work history
• Photo of valid residence of all managers and shareholders (such as water or electricity bills) and their legal entry stamp in Cyprus
• Completed application forms for registering a company in North Cyprus, including the company registration form, the lawyer’s declaration form on compliance with the requirements of the law, and the name, address, and address of the directors and secretary.
• Proof of no criminal history of all managers and shareholders in Turkish or English
• Financial ability to prove having the required initial capital
• A certificate of 50,000 euros in the account of one of the banks in Cyprus
• Memorandum and Articles of Association
• Tax security certificate of all managers

Business plan means the personal initiative of the applicant for company registration in North Cyprus. The applicant must present all the business objectives as well as the funds necessary to realize these objectives to the government of Northern Cyprus.

Only if the business plan submitted is accepted, the person can continue the other steps of company registration in this country. All those who have succeeded in registering a company in Cyprus will be granted a temporary residence of one to two years. If the company can continue its activity for 5 years and does not have any legal and tax problems, the temporary residence becomes permanent.

Minimum capital required to register a company in North Cyprus

The capital required to register a company in North Cyprus depends on the type of company and its conditions. It should be noted that setting up a company in North Cyprus has other side costs in addition to the initial capital. If you have a minimum initial capital of 65 thousand euros, you can start a service company. It is possible to start different businesses in North Cyprus with a minimum initial capital of 65 thousand euros.

However, if you are looking to register a company in the field of export and import, you will need more initial capital. The minimum initial capital for the establishment of export and import companies in North Cyprus will be 171 thousand euros. Do not forget that 171 thousand euros is only the initial capital. As a result, you will need a capital of 250 thousand euros, including the costs related to company registration in Northern Cyprus.

How much does it cost to register a company in North Cyprus?

Foreign investors who intend to register a company in North Cyprus should definitely consider the related costs. Company registration fees in North Cyprus include various fees. These costs can be divided into several categories:

Costs related to registering or setting up a company

The cost of company registration in North Cyprus is one of the most important issues for foreign investors. The cost of registering a company in North Cyprus is one of the most important issues for foreign investors. The cost of registering a company in North Cyprus includes several costs, and it is important for applicants to keep in mind that the costs may vary. And it depends on various factors including the type of company, initial capital, lawyer, and service providers affiliated with registered companies.

The main costs include the cost of registering and choosing a company name, preparing articles of association and legal documents. This cost can vary depending on the service providers and the type of company. Also, we should not forget the additional costs that may be considered as legal or accounting consulting fees, the cost of preparing basic documents and administrative costs. Also, tax costs must be considered, including corporate income tax, value added tax, and social security tax.

Finally, it is important to calculate the expenses carefully so that you can plan your finances properly and have the ability to pay these expenses.

Annual expenses

Annual fees associated with company registration in Northern Cyprus include service fees and office registration. These costs include accounting and attorney fees, which are discussed below:

Accounting cost: Companies must consider accounting costs. These costs can be related to setting up accounting books, protecting accounting books, and following up on the company’s financial and tax issues. Accounting fees vary depending on the size and complexity of the business.

Lawyer’s fee: Companies may need a qualified lawyer to provide legal services. A lawyer can assist in the company’s legal affairs and prepare and sign the required documents. The costs associated with a lawyer vary depending on the amount of services required and the chosen lawyer.

Office registration fee: Companies need an office to register and manage their documents. The cost related to renting an office and paying a secretary who is responsible for recording and managing documents is also included.

Other costs: In addition to the main costs such as registration and establishment of the company, there are other costs. This may include administrative expenses, rental fees for the property where the company’s office is located, and costs related to the company’s office equipment and resources.

In general, annual fees may be lower than initial registration fees, but they are necessary to maintain and manage the company and should be factored into financial calculations.

Costs related to accounting and auditing

Accounting and auditing costs are a critical aspect of the company registration process in Northern Cyprus. These costs change according to the number of transactions of the company and its size. In fact, these costs vary according to the size and volume of the company’s activities. Also, the type of company has an impact on accounting and auditing costs.

In Northern Cyprus, companies are required to pay value added tax (VAT). This tax must be submitted every three months. The tax declaration is for VAT assessment and is prepared and delivered by companies registered in this section.

Accounting and auditing costs are also different according to the nature of the company and the amount of activity and the number of board members, etc. The costs will be calculated. This amount may vary and increase according to the type of company and the volume of the company’s transactions. Therefore, careful planning and financial management are very important, especially in this aspect of establishing a company.

It is very important to pay attention to the intelligent management of accounting and auditing costs. Also, asking financial advisors and experienced accountants can help to be more productive to reduce costs to a minimum and provide more efficient financial management.

Annual fees payable to the company registration center

All foreign companies registered in Northern Cyprus are required to submit an annual declaration to the Companies Registration Center. This declaration is presented as an annual report of the company’s performance to the relevant authorities, and all the changes and transactions that have occurred for the company during a year are included in that report. This information includes changes such as changes in shareholders, changes in company managers, changes in the amount of capital and other changes related to the company’s activities.

Filing an annual return is an important step in the process of maintaining a company and ensuring that any non-compliance with legal requirements is resolved. All information and changes must be accurately and correctly reported in order to avoid any legal and tax problems and the company’s activities proceed in accordance with local laws and regulations.

The cost of stamps

The cost of obtaining a stamp is one of the side costs associated with registering a company in North Cyprus. The stamp is used to submit the annual declaration to the Registrar of Companies in Northern Cyprus. This statement should include a complete report of all important events and changes that occurred in the company during the year.

The owner of the company is responsible for preparing the stamp and the approximate cost for preparing the stamp is around 100 euros. This cost is part of the additional costs required to maintain the company and ensure that any defects and non-compliance with local laws and regulations are resolved.

Special government tax

Costs related to special government taxes are an important aspect of company registration in Cyprus. The government of Northern Cyprus has determined that all companies are required to pay a special government tax by June 30 of each year. If the tax is not paid on time, the company will be fined and may face legal problems.

The minimum special government tax for company registration in Northern Cyprus is 350 euros. This amount can vary based on the size and type of company. A larger company will usually cost more. Companies that consist of several companies are also required to pay 20,000 euros, which is divided among all the companies under the company’s supervision.

If, for any reason, the company cannot pay the government’s special tax at the appointed time, the law allows the removal of the company’s name from the register. In this case, the cost of restoring the company will be 500 euros for two years and 750 euros after two years. For this reason, it is very important to carefully study and comply with the regulations related to the payment of special government taxes and help companies to avoid tax and legal problems. As a result, it is better to talk to your lawyer or consultant about all the costs related to before and after registering the company in Cyprus.

What are the benefits of registering a company in North Cyprus?

As a country in the process of joining the European Union, Northern Cyprus offers many advantages and opportunities for companies registered in the region. These benefits and favorable economic situation make company registration in this country more attractive:

Trade with EU member states: One of the main advantages of registering a company in Northern Cyprus is the possibility of trading with all EU member states. This allows companies to reach wider markets.

Economic prosperity: The economy of Northern Cyprus is growing, with an economic growth rate of around 9%. This situation is suitable for developing businesses and attracting foreign investments.

Low inflation rate: Low inflation rate (below 2%) shows the economic strength of the country.

Low tax rate: Northern Cyprus has a low tax rate compared to other European countries. This allows companies to maintain their profits and enjoy greater financial flexibility.

Low unemployment rate: The unemployment rate in Northern Cyprus is less than 7% and this indicates an active labor market in this country.

Active labor market: the low unemployment rate in North Cyprus is suitable for attracting skilled labor to companies. This helps to create and develop businesses.

Low costs for starting a company: The relatively low costs associated with registering a company and setting up a business in North Cyprus make the country an attractive destination for new businesses.

Low corruption: Northern Cyprus has the lowest administrative corruption in the region, which is one of the important advantages for investors. This assures you that the company registration process will be done correctly and without problems.

Financial security: Establishing in a country with financial security and protected property rights is another advantage of registering a company in North Cyprus.

Social Welfare: Welfare and living conditions are improving and developing in Northern Cyprus. This issue helps to increase the quality of life of the citizens of this country and can be attractive for investors.

Profitable investment: Economic developments and development in North Cyprus allow you to get high profits from your investment in this country in a short period of time. These developments have created positive conditions for businesses and increased their profitability. It provides a business environment conducive to business development and attracting profitable investments in North Cyprus.

These advantages encourage investors to consider registering a company in North Cyprus.

Immigrate to Northern Cyprus through company registration

Immigrating to North Cyprus through the purchase of property offers many advantages and opportunities for people who are looking to change their place of residence and invest in this country. This method allows you to easily and quickly get a residence in North Cyprus. The advantages of buying property as a way to immigrate to North Cyprus are:

Buying Golden Visa: By paying 300,000 Euros as an investment in buying a property, you can get a Golden Visa for Northern Cyprus and travel to this country. This residence is initially issued for one year and can be extended.

Obtaining permanent residence: By owning a property in Northern Cyprus worth 2 million euros, you can apply for permanent residence in this country. This permanent residence allows you to live as a permanent resident in Northern Cyprus.

Buying a property with various facilities: Despite the variety of properties in North Cyprus in terms of geography and facilities, you can choose a house or apartment that meets your needs and tastes.

Reasonable property price: Considering the state of the property market in North Cyprus, you can get properties at a reasonable price and cheaper than in other European countries.

Installment payment: Many property construction projects in North Cyprus offer the option of installment payment, which gives you an advantage as an investor.

Initial Capital Value: Investing in property in North Cyprus can lead to an increase in the value of your initial capital.

Property rental option: If you decide to rent out the purchased property, this can provide you with a secondary source of income.

Good conditions for life: The favorable Mediterranean climate and the security prevailing in Northern Cyprus create mild conditions for life.

The possibility of opening an international currency account: owning a property in North Cyprus also creates the possibility of opening an international bank account.

Buying property in North Cyprus is considered as an effective way to immigrate to this country and take advantage of its benefits and opportunities. These properties can be used as residences, tourist areas or real estate investments.

Is my presence required to register a company in Northern Cyprus?

To register a company in Northern Cyprus, it is not necessary to be in person in this country and all the steps can be done through an immigration lawyer. It is very important to choose a reliable and skilled lawyer in the field of document preparation and company registration procedures. An experienced immigration lawyer can help you in all stages from the preparation of documents to the final follow-up.

Also, the possibility of using a lawyer as company secretary allows you to choose her as your company’s representative in North Cyprus. This allows you to benefit from the lawyer’s expertise and experience in preparing and signing administrative and legal documents.

Due to the complexity of legal and financial matters related to the registration of companies in foreign countries, it is very important to consult with a specialized lawyer who is knowledgeable about the laws and regulations related to North Cyprus. She can inform you about the terms, rules, and costs of company registration in a detailed and complete manner and guide you through all the steps.

Tax laws in Northern Cyprus

Taxes in Northern Cyprus vary depending on the type of company. You must pay taxes related to your company and be careful not to violate tax laws. In Northern Cyprus, different companies have different tax laws.

For example, International Companies of Companies (IBCs) must pay 1% of their income as tax. On the other hand, free zone companies are exempt from paying taxes.

Every year, by June 30, every company is required to pay the state tax to be exempt from the tax. This type of tax starts from a minimum amount of 350 euros. As taxes and tax laws can change drastically, it is recommended that you consult a financial advisor or tax lawyer to get the most out of the tax benefits in Northern Cyprus.

The experienced and expert company MAN investment ltd has been providing services and consultations for its clients in the field of immigration, property purchase, investment and company registration in North Cyprus for many years. You can easily leave all your immigration and company registration work in North Cyprus to us.

Considering the vastness and variety of companies and their type of activity, none of the numbers and figures that you read in this article are final and definitive, so please note that all company registration costs are determined after full consultation with the company. MAN investment ltd And official and legal lawyers active in this country will be determined.

last word

Northern Cyprus is really an attractive place to invest and start a business. This country is known for its many business and investment opportunities. With a low tax rate, positive economic growth, and no need for a visa to enter, registering a company in North Cyprus can be a great choice for foreign investors.

So, if you are planning to start a business or invest, North Cyprus is one of the ideal destinations to do these things. Take advantage of all the opportunities provided in this country and look for the growth and profitability of your business.

In this article, you learned about the types of companies that can be established in North Cyprus, the conditions and procedures for company registration in North Cyprus, and also the benefits of company registration in North Cyprus. In the end, we ask you to write us your comments about company registration in North Cyprus.