Northern Cyprus (TRNC) local company formation.
If you plan to open a shop, an office or a restaurant in Northern Cyprus, the suitable structure is a local limited company. Formation, accounting and tax processes are handled by our team in Nicosia.
- Since 1996
- Own office in Nicosia
- Nearly 200 local clients
When a Local Company Is Suitable.
If your clients are located within Northern Cyprus, the suitable structure is a local limited company.
Shops and stores
Businesses that will sell at retail in Northern Cyprus.
Restaurants and cafes
Businesses that will operate in food and beverage in Northern Cyprus.
Offices and service businesses
Office and service businesses whose clients are in Northern Cyprus.
Those relocating to Northern Cyprus
Entrepreneurs who live in Northern Cyprus and will set up their business there.
How It Differs from a Free Port Company.
Both are limited companies. The difference between them is who the sales are made to.
| Local limited company | Free Port company | |
|---|---|---|
| Market sold to | Local limited companyNorthern Cyprus domestic market | Free Port companyOutside Northern Cyprus and within the Free Port |
| Corporate tax | Local limited company10% | Free Port companyNone on this activity |
| Dividends | Local limited company15% income tax | Free Port companyNo tax in Northern Cyprus |
| VAT | Local limited companyStandard rate 16% | Free Port companyNot a VAT payer |
| Minimum capital | Local limited companyTurkish lira equivalent of €25,000 | Free Port company€25,000 |
| Suitable for | Local limited companyShops, offices and restaurants in Northern Cyprus | Free Port companyBusinesses whose clients are outside Northern Cyprus |
Local Company Taxation.
Corporate tax is calculated first on profit, then income tax on the remaining profit. VAT applies to sales separately.
- 10%
Corporate tax
Calculated on the company's annual profit.
- 15%
Income tax
Calculated on the profit remaining after corporate tax.
- 16%
VAT
This is the standard rate; different rates apply to some goods and services.
- Declaration
Your country of residence
Dividends may also need to be declared in your country of residence. Please consult your home-country tax adviser.
Local Company Formation Process.
Applications are submitted to the Registrar of Companies. We prepare the documents; the decision on registration rests with the relevant authority.
Name approval
A name search is carried out for the company name.
Memorandum and articles of association
The activity, ownership and capital structure are set out.
Application documents
Forms, the agreement and identity documents are submitted together.
Capital fee
Calculated on the registered capital and paid before registration.
Registration
The company is registered and the documents are delivered to you.
Tax and insurance registration
The company registers with the tax office and, if it will employ staff, with social insurance.
What the company must have
- At least two partnersUp to fifty
- At least one directorManages the company
- A separate secretaryA sole director cannot act as secretary
- Registered addressIn Northern Cyprus
If one of the partners is not a Northern Cyprus citizen
- A partner who is a citizen of Turkey is also treated as a foreign partner
- Approval of the ministry responsible for the economy is required
- Capital of at least the Turkish lira equivalent of €25,000
- The partner's share is blocked at a bank and released after registration
The formation fee depends on the capital, and the accounting fee on the number of employees and the transaction volume; a quotation is provided at the first meeting.
Contact UsPost-Formation Annual Obligations.
The obligations the company fulfils each year and their deadlines; we keep track of the calendar.
- April
Annual accounts and return
Annual accounts are prepared and the corporate tax return is filed.
- May and October
Corporate tax payment
The tax is paid in two instalments, at the end of May and October.
- Every month
VAT return
The return is filed by the 15th of the following month.
- Every year
General meeting
The annual general meeting is held and the resolutions are recorded.
- 42 days
Annual report
Filed with the Registrar of Companies after the general meeting.
- 14 days
Director, secretary, address
Any change is notified separately; it does not wait for year end.
Our Nicosia Office and Local Experience.
We have provided accounting and tax services since 1996. We have nearly 200 clients in the Northern Cyprus domestic market.
Nicosia officeŞht. Murat İlhan Sokak No:5, Kumsal
- Nearly 200domestic-market clients
- Since 1996in accounting and tax
- Nicosiaour own office
Formation
We manage the application process from name approval to registration.
Accounting
Records are kept by our own accounting team in Northern Cyprus.
Tax and VAT returns
Monthly and annual returns are filed on time.
Company records
General meetings, annual reports and notification of changes.
Frequently Asked Questions.
A local company is formed to operate in the Northern Cyprus domestic market; it pays 10% corporate tax and applies VAT to its sales. A Free Port company is formed for activity directed outside Northern Cyprus and does not pay these taxes on that activity.
Yes. A partner who is not a Northern Cyprus citizen, a citizen of Turkey included, is treated as a foreign partner: the approval of the ministry responsible for the economy is required, the capital must be at least the Turkish lira equivalent of €25,000, and the partner's share is blocked at a bank until registration.
No. A company is formed with at least two partners. It also requires at least one director and a separate secretary; a sole director cannot act as secretary at the same time.
Corporate tax of 10% applies to profit, and income tax of 15% applies to the remaining profit. Together they form a tax burden of 23.5%. The standard VAT rate on sales is 16%.
Both depend on the ownership structure and the permits required. The fee and the estimated time are communicated at the first meeting, based on your activity.
A company account in Northern Cyprus is generally opened within 2-4 weeks. We prepare the application documents; the decision to open the account rests with the relevant bank.
Yes, through a local virtual POS. Stripe and PayPal do not support Northern Cyprus companies; card collections are transferred to your company account in Northern Cyprus.
Not by itself. A foreign partner who will reside in Northern Cyprus and work in the company must obtain a permit separately. We do not provide visa or permit services in Northern Cyprus.
Yes. A local limited company requires an auditor's report; our accounting team coordinates its preparation.
The Free Port Company and Related Articles.
If your clients are located outside Northern Cyprus, you can also review the other structure.
