Types of Companies in the TRNC: Comprehensive Guide and Advantages

Types of Companies in TRNC

1. Sole Proprietorship

This is a type of company established and operated by a single person. Its establishment is easy and requires low capital. However, the business owner is personally liable for all debts and obligations.

2. Collective and Limited Partnerships

Collective Company: It is established by two or more persons, and all partners are jointly and unlimitedly liable for the company’s debts.

Limited Partnership: It is established by one or more general partners (with unlimited liability) and limited partners (with limited liability).

3. Limited Company (Ltd.)

This is the most common type of company. The liability of the partners is limited to their capital contributions. A minimum of two partners is required for its establishment. It has a legal personality, and the personal assets of the partners are not affected by the company's debts.

4. Branch of a Foreign Company

This is the activity of a company established outside the TRNC opening a branch in TRNC. The branch operates under the legal personality of the parent company and is subject to certain legal obligations.

5. Free Port Company

These are companies established in the Famagusta Free Port Zone. They offer tax advantages and flexible trade opportunities. They are especially suitable for export and import-oriented businesses.

6. International Business Company (IBC)

This is a type of company that operates for foreign markets and offers a corporate tax advantage of 1%. It has replaced offshore companies and is ideal for businesses engaged in international trade.

Considerations When Choosing a Company Type

Field of Activity

The field of activity of your business is an important factor in determining the appropriate company type.

Amount of Capital

Some types of companies require a certain amount of capital.

Partnership Structure

The number of partners and the distribution of responsibilities are effective in the selection of the company type.

Tax Advantages

Each type of company has different tax obligations and advantages.

Legal Obligations

There are legal procedures and reporting requirements that vary by company type.

Company Establishment Consultancy with ORTAC

As ORTAC, we guide you through the process of establishing a company in TRNC. Our services include:

Selection of Company Type

We help you determine the most suitable type of company for your business.

Management of the Establishment Process

We provide support during the preparation of necessary documents and completion of official procedures.

Tax and Accounting Consultancy

We offer professional services for your company’s tax planning and accounting processes.

👉 To safely start the process of establishing a company in TRNC contact us