Company Establishment with Domestic and Foreign Shareholders
We serve local and foreign shareholders who want to establish a local company in the Northern Cyprus.
Local Shareholders Company Establishment
Company establishment in Northern Cyprus is subject to Chapter 113 Companies Law. Each company must have at least two founding partners (shareholders), at least one member of the board of directors and one secretary of the board of directors. Before the establishment of the company, it is necessary to make a name check at the Registrar of Companies. After the company shareholders decide on the name to be used as a result of the name poll, the company’s articles of association and bylaws are prepared and an application is made to the Registrar of Companies. During the application, the following documents should be ready along with the articles of association and the statute.
- M.S. 1 form
- M.S. 2 form
- M.S. 3 form
- Copies of the identity cards of the founding shareholders
- Copies of company directors’ ID cards
- Copy of the company secretary’s ID card
Company Establishment with Foreign Shareholders
Foreign real and legal persons can open companies and branches in Northern Cyprus. However, the founding capital of the local company, in which a foreign shareholder will take part, must be at least 25,000 Euro equivalent of Turkish Lira. The foreign shareholder is required to deposit the amount equal to his/her share in a bank operating in Northern Cyprus and subject to the supervision of the Central Bank of Northern Cyprus. During the application, the following documents should be ready, along with the articles of association and statute for the establishment of the company.
- Notarized copy of passport of foreign founding natural person shareholders.
- Notarized passport copy of foreign company directors
- Notarized copy of passport of the foreign company secretary
- Certificate of non-criminality obtained from the internal security authorities in the country of foreign founder natural person shareholders
- A criminal record from the internal security authorities in the country of foreign company directors
- Tax Confidence document to be obtained from the Northern Cyprus Tax Office for foreign company directors
If the foreign shareholder is a legal person, he/she must prepare the following documents for the company application.
- The decision of the board of directors of the company regarding the establishment of the company in Northern Cyprus
- Certificates of no criminal convictions from the internal security authorities of the members of the company’s board of directors
- List showing company shareholders
- Documentation from the Chamber of Commerce in your country of residence, showing that you are in operation
- Articles of Association and statute with amendments
- Copy of the company secretary’s ID card
A foreign company can also operate as a branch in Northern Cyprus. In addition to the above-mentioned documents, the foreign company that will operate as a branch in Northern Cyprus must also prepare the decision of the board of directors stating that the Northern Cyprus citizen will represent the company in branch registration procedures in Northern Cyprus.