How can I start a business in Northern Cyprus?

In Northern Cyprus, you can open a local company for activities within the island and a company in the free port for external business operations.

You can read about opening a legal entity in the free port at this link, this article will only focus on a local company for activities within Northern Cyprus.

• Opening a company in Northern Cyprus
• Documents for opening a company
• Submission and receipt of documents
• Activation of the company
• Frequently Asked Questions

Opening a company in Northern Cyprus

A local company is a legal entity that can engage in certain activities within the island.

Foreigners (only natural persons) and Cypriots can be shareholders in such a company. A foreigner can also be a director, but there are restrictions on ownership and management by foreigners when conducting certain types of activities. For example, restrictions apply to the amount of real estate that a company can acquire.

Carefully consider the type of business you want to engage in - the types of activities are specified in the company's charter. Our lawyers will help you determine your goals and answer questions at the initial stage. It is possible to amend the charter and add types of activities, but this is a lengthy and complex procedure, as it is done through the courts.

Documents for opening a company in Northern Cyprus

Name and charter of the company

The name must be unique, the check takes about 10 days, but recently, due to overload in the registries, the process may be delayed. It is better to immediately choose 2-3 names to request 2-3 names of the legal entity in case of refusal of one of them. Our lawyers can select options that are most likely to be approved.

Passports of company shareholders

Passports of natural persons are submitted for one day for the lawyer to confirm the authenticity of the documents of future founders of the company in Northern Cyprus. In addition to natural persons, shareholders of the company can be other companies, but only local ones. In this case, documents confirming the establishment of the company and the decision of the board of shareholders are required.

Appointment of Director and Secretary

It is necessary to immediately determine who will be the director and who will be the secretary, as well as distribute the shares of the company. The company director is a person who has the right to sign documents. The company secretary controls business correspondence, provides documents to the State Register, manages the archive, keeps minutes of meetings, manages administrative matters, and performs other standard functions.

Certificate of No Criminal Record

The document is issued in the country of citizenship and must be signed and sealed by the authorities of your country, then it needs to be notarized and legalized here. Russian citizens can obtain such a certificate at the Russian embassy, whose consular office operates in the northern part of the island. The certificate is issued in about a month. You can also provide a certificate of no criminal record from local law enforcement authorities, but only if you have legally resided in Northern Cyprus for more than 5 years.

• Also read: how to get a certificate of no criminal record in Northern Cyprus

Certificate from the Mukhtar

The Mukhtar is a local elder, present in every municipality. A certificate confirming your residence in Northern Cyprus is issued based on a lease or property purchase agreement.

• Read also: how to get a certificate from the Mukhtar

Company Address

At the initial stage of company registration, you can specify the address of the real estate owned by one of the shareholders. However, after the company is established, your office or production facility will be inspected by local insurance authorities, the pension fund, and other relevant government agencies depending on the nature of your business. To pass the inspection, you will need to provide a commercial real estate address and update the address in the registry.

Submission and Receipt of Documents

The final stage involves submitting all collected documents to all necessary registries and authorities. The company registration process takes 5-7 weeks, but due to registry overload, this process may take up to three months at present.

After successfully passing all checks, you will receive the following documents:

• Address confirmation
• Company registration confirmation (date of incorporation)
• List of shareholders
• Approval of director and secretary
• Confirmation of your company name

Company Activation

Having an open company does not mean it is ready to operate. To do so, it must be activated. Company activation involves registering the firm with social insurance authorities, the pension fund, the labor office, as well as with the association or consortium regulating your company's activities. You also need to register the company with the municipality — the belediye.

Our specialists can help you with all these matters in the most efficient manner, and you can find the contact details below.

Frequently Asked Questions about Opening a Business in Northern Cyprus

How much do business opening services cost?

The services of an accountant or lawyer for opening your own business will cost you between 2,000 - 3,500 £, including fees. If your accountant has done everything correctly, the maximum freeze period of the share capital is 10 days. The bank will return the money only to the person who deposited it into the account.

What is the size of the share capital?

The share capital for non-residents of Northern Cyprus is a minimum of 25,000 euros. However, if a co-owner of your company is Cypriot, the capital must be contributed proportionally to your share in the company.

How to open a bank account?

A foreigner has the right to open a bank account in Northern Cyprus by providing the necessary set of documents.

In the largest Telegram forum in Northern Cyprus, there is a section "Business" where you can consult with people who have gone through various stages in this field and ask your questions.