Company Formation in the Turkish Republic of Northern Cyprus
Both local and foreign investors seek fresh prospects for creating corporate organizations in the Turkish Republic of Northern Cyprus (TRNC)’s ever-changing economic landscape. The applicable law for company formation is determined by the industry in which the desired firm will operate. The TRNC’s foundational law governing company creation is the Companies Law Cap 113. This legislation defines a company’s establishment, operations, organs, authority, and obligations.
Companies founded in the TRNC face different tax treatment depending on their specialized operations. The establishment and operation restrictions, which are subject to varying tax regimes, are defined in supplementary statutes that supplement the Companies Law.
Securing dependable professional services is a vital decision for investors. Creating a company entails more than just dealing with legal issues. Aside from registration, investors must understand the tax ramifications that businesses may face. Seeking tax counsel early on ensures that a lucrative venture succeeds.
Tadian Holding has deep knowledge of Companies Law Cap 113 and substantial experience in business formation. We have offered consulting services to a number of local and international businesses, assisting them through concerns pertaining to Company Law and Tax Laws. We’ve created a reputation for providing dependable and expert assistance on accounting, tax, and legal issues to multinational organizations.
Our team includes experts in Company Law, as well as tax and accounting matters, and we are competent at addressing the challenges presented by government, international organizations, local firms, and privately-owned enterprises.
In the Turkish Republic of Northern Cyprus (TRNC), both natural and legal entities can legally start businesses in their names. TRNC regulations govern the legal status of businesses.
Several laws of the TRNC govern the legal form and activities of businesses. Companies Law Cap 113 is the cornerstone law among these.
Among the laws that control the legal structure and activity of businesses are the following: • TRNC Companies Law Cap 113 • Partnership and Trade Names Law • Foreign Investment Law • TRNC Banking Law • International Banking Units Law • Freezone Law • International Business Companies Law
In addition to the fundamental Companies Law Cap 113, various industries are governed by legislation that governs their formation and operation. While banking and insurance firms are formed under the firms Act, their licenses and operations are governed by the Banking Law and the Insurance Services Law, respectively.
Furthermore, several regulations grant favorable tax treatment and specify guidelines for the formation and management of specialized businesses. Free Zone Companies and International Business Companies, which operate within or outside the TRNC, are incorporated under the Free Zone Law and the International Business Companies Law, respectively. These laws govern the companies’ licenses and operations.
Sole traders, partnerships, local limited liability companies, branches of foreign limited companies, free zone companies, and international business companies can all be incorporated in the TRNC.
Specific forms of Local Limited Liability Companies are subject to special laws:
a. Commercial banks b. International banking units c. Insurance Service Providers
Regardless of industry restrictions, all companies incorporated in the TRNC (excluding Branches of Foreign Limited Companies) must meet the following fundamental requirements:
- Companies must have at least two (two) shareholders.
- Each company must have at least one director.
- Each firm must select one (one) company secretary. The secretary is in charge of providing formal company documentation.
- Businesses must have a registered address in the TRNC.
These conditions apply to all types of businesses, regardless of the unique rules that regulate their operations.
Contact Tadian Holding to embark on a seamless journey of establishing your business entity in North Cyprus.
