Registering a company in Northern Cyprus is considered one of the best investment avenues in the country. The youthful market in this nation ensures a rapid return on investment. Additionally, through this method, investors can obtain temporary residency.
Northern Cyprus, an exquisite island in the Mediterranean Sea, has hosted a large number of migrants from all around the world in recent years. This small country has experienced significant growth in various economic sectors, attracting many individuals to consider it as a suitable place for investment. While purchasing real estate is one of the most profitable investment methods on this tourist-friendly island, registering a company is also recognized as one of the most lucrative investment methods. Registering a company in this country involves its own legal procedures and specific costs. Even after registering the company and obtaining temporary residency, the company director can apply for residency for immediate family members of the first degree. If you’ve chosen to invest in Northern Cyprus by registering a company, this article will be extremely beneficial, covering all crucial aspects in this regard.
Similar to all countries worldwide, Northern Cyprus has specific laws regarding company registration. Generally, several main types of companies can be registered in this country:
Interestingly, most companies in Northern Cyprus are Private Limited Companies. This means that foreigners who have come to invest in this country have registered a Private Limited Company. In fact, a Public Limited Company is a company where a part of it belongs to the government, and the government has invested in it.
If you’ve made your final decision to register a company, in this section, we’ll acquaint you with all the necessary documents for company registration:
Registering a company in Northern Cyprus has its specific stages and processes. However, our specialists at Aretan will be with you throughout all these stages. In the initial phase, the company name must be determined. Generally, the company owner submits three chosen names to the government. It takes about three days for the government to approve one of the names. Then, the company’s articles of association need to be prepared and presented. These articles are drafted based on the activity the company intends to undertake. Additionally, some aspects related to the business you intend to start will be added to these articles by Aretan experts if necessary. After the approval and signing of the articles of association and the manager’s signature in the court, the next step will be the validation of the address, shareholders, and secretary. This validation process will take approximately two to three weeks. Once the individual receives this validation, they can withdraw the initial blocked €25,000. At this stage, obtaining approvals from the municipality, labor department for insurance and residence matters of the company’s individuals takes place. During these activities, if the person requires any specific additional permits based on their profession, for example, a health department permit, it will be obtained separately.
It is better to be aware of all the costs associated with registering a company in Northern Cyprus before anything else, allowing better planning for your business. As we mentioned, the initial cost related to company registration is the same €25,000, which remains blocked in the bank until the end of the licensing process, between two weeks to a month. Also, the amount equivalent to ten months of the minimum wage in Northern Cyprus needs to be blocked in the bank as a financial guarantee for the managing director as long as the company is operational. To obtain the permits related to the company, receive a business stamp, and other processes, you will need at least 48,000 Turkish liras. Additionally, apart from the initial capital and director’s guarantees mentioned earlier, an amount of €10,000 needs to be paid for governmental fees, obtaining permits, getting the business manager’s and shareholders’ business residence, and the service fees of Aretan consultancy and investment group.
As mentioned in the article, if the intention behind registering a company and investing in Northern Cyprus is to acquire residency, one can proceed after completing the company registration. After completing all the company registration procedures, to carry out residence procedures for yourself and your family, you need to provide the address of a rented or purchased residential property as your place of residence. Ultimately, after receiving the temporary residency for the business owner or the company’s manager, the individual can proceed to obtain residency for the individuals under their custody. This temporary residency needs to be renewed annually for all individuals. It’s good to know that if you have no legal issues, after six years of holding temporary residency, you can apply for North Cyprus citizenship. However, consultants at Aretan do not recommend this as obtaining citizenship from the Northern Cyprus government will be very challenging in this scenario.
In this article, we’ve tried to cover all the essential aspects of company registration in Northern Cyprus. If you still have any questions in this regard, continue with us. We’ve provided answers to some of the most common questions on this topic.
Considering the aspects we mentioned, apart from the company's capital, an individual needs approximately €40,000 for registering a company in Northern Cyprus. After registering the company, they can withdraw €25,000.
As mentioned, anyone registering a company in Northern Cyprus can obtain temporary residency for themselves and their first-degree family members. After renewing the temporary residency annually for six years without any legal prohibitions, they can apply for citizenship and obtain a passport of this country.
The answer to this question is no. In some businesses in Northern Cyprus, having a local partner is mandatory. For example, in real estate businesses, 51% of the shares must be in the name of a local partner. Additionally, some businesses in this country require 100% ownership by a local individual, including travel agencies, pharmacies, exchange offices, and construction companies.
Northern Cyprus, known as a pearl in the Mediterranean Sea, has transformed into a land of opportunities today. Its growing economy has attracted foreign investors to this beautiful island. Investing in Northern Cyprus offers various profitable avenues, with registering a company being one of the most lucrative. The tourist-friendly nature of Northern Cyprus and its dominance in many service and production sectors have enabled companies to achieve high profits in a short period. Consultants and experts at Aretan accompany individuals throughout the process of company registration in Northern Cyprus, ensuring a smooth journey without any issues. To obtain a free consultation, feel free to contact us based on your current situation.