How can I start a business in Northern Cyprus?

Opening a local company (Local Company) in Northern Cyprus is possible both for small-scale business within the island and for full-fledged commercial activities involving employee hiring, contracts with local partners, and banking services in TRNC banks. Below is the process structure: what this form is, who can be a founder, what documents are needed, how long registration takes, and what to do after obtaining certificates and activation.

• How to open a local company in Northern Cyprus
• Status and advantages of a local company
• Foreign founders and activity restrictions
• Document package for registration
• Stages and timelines of registration
• Company activation after registration
• Cost of opening and share capital
• Bank account: how to open
• Accounting and obligations after opening
• Frequently asked questions
• If you want to open a company without unnecessary mistakes and problems

How to open a local company in Northern Cyprus

A local company (Local Company) is a legal entity operating within the Turkish Republic of Northern Cyprus (TRNC). Such a company can conduct commercial activities on the island, enter into contracts, rent property, hire employees, interact with government authorities, as well as acquire movable assets on the company's balance sheet and immovable property in the allowed quantity.

It is important to determine the type of activity in advance: types of activity are fixed in the charter. Changes are possible, but in practice, this can be a lengthy procedure, so it is better to consider the company's goals from the start.

If you need a company for international activities (export, import, work outside the island), registration in a free port is usually considered.

Status and advantages of a local company

A local company is the basic legal form for business on the island. It provides:

• the right to conduct commercial activities in the TRNC and work with local partners;
• access to the banking system (subject to compliance requirements);
• the ability to obtain tax numbers and register in mandatory funds;
• official employee registration and reporting;
• ownership of assets on the company balance sheet subject to sectoral restrictions.

Practical advantage: the share capital is “frozen” until company activation and then unlocked.

Foreign founders and activity restrictions

Founders can be foreigners (usually individuals) and TRNC citizens. A foreigner can also be the director, but there are restrictions in certain sectors.

Important: there are different company activity configurations in Northern Cyprus. For example, there are sectors such as construction, real estate operations (realtor services), car rentals that a Cypriot cannot own. There may also be a requirement that the controlling share (51% or more) must belong to a TRNC citizen or that they must hold the director position. Some activities may be completely closed to foreigners. Therefore, to avoid mistakes when choosing the configuration of your future company, we recommend consulting specialists who can help resolve all questions related to company registration in Northern Cyprus.

Recommendation: before registration, match your business model with restrictions and requirements regarding shares, director, and charter.

Document package for registration

1) Company name and charter

The name must be unique. Verification takes up to 10–15 business days. It is recommended to prepare 3–5 options.

2) Shareholders' passports

Founders' passports are provided to confirm authenticity. Corporate founders are usually allowed locally with supporting documents.

3) Appointment of director and secretary

The director has signing authority. The secretary is responsible for document flow, registers, minutes, and administrative matters.

4) Certificate of no criminal record

Issued in the country of citizenship, notarized translation required. If legally residing in the TRNC for over 5 years, a local certificate may be possible.

• How to obtain a criminal record certificate in Russia while in Northern Cyprus

5) Certificate from the mukhtar

Confirms place of residence, issued based on a lease agreement or property documents.

• How to obtain a certificate from the mukhtar

6) Legal address of the company

The address must be in a commercial premises. Registration in residential apartments is not allowed.

7) Bank account and share capital deposit

The share capital for non-residents is at least €25,000, usually €12,500 per founder. The amount is frozen during registration and until company activation.

For a foreign director, an additional deposit of £12,000–15,000 is required, which is frozen for 24 months and returned upon compliance with conditions.

Stages and timelines of registration

Incorporation of a local company takes 2 to 4 months.

Step 1: Approval of the name

Uniqueness check — up to 10–15 business days.

Step 2: Preparation of corporate documents

Charter, memorandum, resolutions, appointments.

Step 3: Submission to government authorities

Registration in the registry, tax authorities, funds, chamber of labor, and municipality (belediye).

Step 4: Receiving documents and activation

• address confirmation;
• incorporation date;
• shareholders composition;
• director and secretary;
• company name.

After activation, the share capital is unlocked.

Company activation after registration

Activation includes registration in social security funds, pension fund, chamber of labor, and, if necessary, in relevant associations and the municipality.

Cost of opening and share capital

Service cost for opening a company averages £2,000 — 3,500.

Requirements for deposits and share capital are listed above.

Additional expenses: office rent, accounting, licenses, bank fees.

Bank account: how to open

A foreigner can open an account in a Northern Cyprus bank by providing a complete document package.

You can find out what documents are needed to open a bank account in a separate article.

Accounting and obligations after opening

• Accounting: bookkeeping and reporting;
• Funds and personnel: contributions and personnel documents;
• Licenses: if required;
• Inspections: compliance with address and type of activity.

Frequently asked questions

Registration time: 2–4 months.

Can a foreigner be a director: yes, considering sector restrictions and deposit.

Commercial address required: yes.

If you want to open a company without unnecessary mistakes and problems

Contact our partner — law firm DeJure.

Phone: +90 539 119 05 55
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You can discuss experience and ask questions in the largest Northern Cyprus Telegram forum: “Business” section