International Business Companies
International Companies are companies that carry out all kinds of activities completely abroad (Off-Shore) and generate their income from abroad. Only foreign nationals residing outside the Northern Cyprus or Northern Cyprus citizens can establish a International Business Company.
Northern Cyprus abolished the law of offshore companies in 2005 and replaced it with the law of international business companies, giving individuals and companies operating abroad the opportunity to use Northern Cyprus as a base. Many attractive advantages are offered to international business companies operating in Northern Cyprus.
There are the following conditions for the registration of International Business Companies.
- Notarized passport or ID of founding shareholders
- Residence certificate to be obtained by the founding shareholders from the e-government
- Certificate of non-criminality to be obtained by the founding shareholders from the e-government
- CV of founding shareholders
- Reference letter to be received by the founding shareholders from the bank or lawyer firm they worked for
The company’s founding capital of 20,000 Euros must be deposited in a bank located in the Northern Cyprus before registration.
Taxes Subject to Northern Cyprus Business Companies
Main benefits available to international business companies
- International business companies are subject to a tax rate of 1%.
- International business companies can transfer the money and profits they have obtained and transferred from abroad.
- There is no tax on the dividend distribution of international business companies.
- Income tax and value added tax are not collected on royalties, interest and any other fees and service fees to be made abroad by international business companies.
- Shareholders of international business companies do not pay any tax on the transfer of shares.
- Profits obtained by international business companies from the sale of securities are not subject to tax.
For detailed information, you can read our article on Starting a Business Overseas: Steps and Processes, which includes information about establishing a company abroad.