Establishing a company in the TRNC is subject to Chapter 113 Companies Law. In accordance with the relevant law, the establishment and working conditions of companies are determined by the area of authority and responsibility. The taxation of the company also varies according to the fields of activity.
Laws determining the legal area and working conditions of the company to be established a. Chapter 113 TRNC Companies Law b. Collective and Limited Partnerships and Trade Names Act
c.Foreign Capital Law d. TRNC Banks Law e. International Banking Units Law
f. Free Port and Territory Law g. International Business Companies Act h. Insurance Services Act (link courts.net)
There are also laws in the TRNC that determine the fields of activity and working conditions of companies.
Businesses that can be opened in TRNC:
a- Sole proprietorships
b- Collective and Commandite Companies
c- Local Limited Companies (Banks, Insurance Companies, International Banking Units)
d- TRNC branches of foreign companies
e- Free Port Companies
f- International Business Companies
Conditions sought in the establishment of companies:
a- There must be at least 2 shareholders and/or partners.
b- Must have at least 1 director.
c- Must have at least 1 secretary.
d- It must have a registered address.
e- Minimum 25,000 EUR or equivalent paid-in capital. (This amount is blocked in your account until the company is established and transferred to the company’s own account after the establishment is completed.)
If a foreign national director is appointed to the company, the director must provide a letter of guarantee of 150,000 TL, valid for 18 months, from a TRNC bank for the purpose of securing the company’s tax liabilities. This bank guarantee letter is submitted to the TRNC Revenue and Tax Office, and a “Tax Confidence Certificate” is received in return.
The first step to be taken for the establishment of the company is to determine the name of the company. Upon the approval of the company name after the application to the Registrar of Companies, the articles of association and bylaws are prepared according to the company’s field of activity. After the company’s articles of association and bylaws are approved by the registry of companies, an application is made for establishment.
Statement of compliance with the legal requirements received from the lawyer (MŞ1), 3 incorporation documents showing the registered office of the company (MŞ2) and the name, address (MŞ3) of the Directors and the secretary, is prepared together with the approved Articles of Association and Bylaws..
If there is a foreign shareholder in the company, a copy of the passport to be obtained after seeing the original by the Registrar of Companies or a copy of the passport to be given by two lawyers by seeing the original and signing it is submitted.
If the criminal record documents from the country of citizenship of the shareholders are not in Turkish or English, they must be translated into Turkish or English and certified as a correct translation with an Apostille annotation.
In addition, for each foreign director, Tax Confidence Certificate and Residence document to be obtained from the TRNC Income and Tax Office or proof of address, current invoice, received from a TRNC bank, the minimum capital of 25,000 EUR has been deposited and the company will remain blocked until the establishment is completed as stated above. A blocking letter must be submitted stating.