Company Registration in the Free Zone of Northern Cyprus

If you plan to conduct business outside of Northern Cyprus — engaging in international trade, IT services, logistics, export, or “cloud” services — the optimal solution is to register a company in the Free Zone at the port of Famagusta — a territory with a unique legal and tax regime, created specifically to stimulate the export of goods and services outside the TRNC. Such a company receives a special legal and tax regime and is not considered a local TRNC business.

• Advantages of the Free Zone (Famagusta Free Port)
• Permitted types of activity
• Company registration process
• Documents for registration
• Frequently asked questions
• Who assists with registration?

Advantages of the Free Zone (Famagusta Free Port)

The Free Economic Zone of Northern Cyprus is located in the Famagusta port area and is the only operational Free Zone in the TRNC. Companies registered here are focused exclusively on the external market and are legally distinct from local companies (Local Company).

Key advantages of registering in the Free Zone:

• 100% foreign ownership — no local partner or Cypriot director required;
• Zero VAT rate for foreign economic activities;
• Customs benefits — no import duties on equipment for operations within the zone;
• Separate legal regime, not linked to the local TRNC market;
• Famagusta port infrastructure — offices, warehouses, production facilities within the zone.

Important: a Free Zone company cannot freely conduct commercial activities within Northern Cyprus. Its market is international export of goods and services.

Permitted types of activity

Companies in the Free Port are registered for foreign economic activities. In practice, the most common are:

• international trade and export;
• logistics and transportation operations;
• IT companies, SaaS projects, data centers;
• call centers and service centers;
• production and processing of goods for export.

Company registration process in the Free Zone

Registering a company in the Free Zone is more complex than opening a local firm and requires coordination with the Free Zone administration. On average, the process takes 2 to 4 months.

Step 1. Approval of the company name

The name must be unique. Verification takes up to 15 business days. It is recommended to prepare 3–5 options in advance.

Step 2. Preparation of corporate documents

The company’s articles of association and memorandum are prepared in Turkish, defining the structure, roles, types of activity, share capital, and distribution of shares.

Step 3. Appointment of director and secretary

The director has signing authority and operational management responsibilities. The secretary is responsible for document management, interaction with registries, and administrative matters.

Step 4. Selection and registration of address

For a Free Zone company, having premises within the zone is mandatory. This can be an office, warehouse, or production facility within the port of Famagusta.

Step 5. Freezing of share capital

The minimum share capital is €25,000. The amount is frozen in a bank until the company is activated.

Step 6. Submission of documents and registration

Documents are submitted to the Free Zone administration — Serbest Liman Bölge Müdürlüğü, as well as to tax and registration authorities.

Step 7. Company activation

After registration, activation occurs: registration with tax authorities, social security, and the chamber of commerce. A mandatory requirement is hiring at least one local employee, a TRNC citizen.

After activation, the share capital is released, and the company can start operations.

Documents for company registration in the Free Zone

• articles of association and memorandum;
• registration application;
• director appointment order;
• secretary appointment order;
• shareholders’ passports (foreign individuals);
• bank confirmation of frozen share capital;
• certificate of no criminal record (Russian citizens can obtain it through the consulate);
• certificate from the mukhtar

Frequently asked questions

Can a Free Zone company conduct activities in Northern Cyprus?

No. The Free Zone is intended for foreign economic activities.

Who can be a founder?

Founders can be foreign individuals with no citizenship restrictions. Involvement of a Cypriot partner is not required.

Can the types of activity be changed after registration?

Activities are fixed in the articles of association. Changes are possible but involve a long and complex procedure through official authorities. It is recommended to list all activities upfront.

Who assists with registration?

If you want to open a company without unnecessary errors and problems, contact our partner — the law firm DeJure. DeJure lawyers support registration at all stages — from application submission to company activation, obtaining a tax number, and hiring personnel.

Phone: +90 539 119 05 55
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The editorial team thanks licensed Northern Cyprus lawyer — Elvina Sabirova — for assistance in preparing the material.

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