The Companies Act. Cap 113, based on the UK Companies Act 1949, is the governing legislation for the establishment of a Local Company in North Cyprus. It allows investors to conduct businesses both within the local market and between TRNC and other countries and is very similar to the structure of a Local Company in the UK. If the target consumers of the Company’s goods and services are TRNC residents and at least one shareholder is a TRNC citizen, then the Local Company structure is the best and recommended option.
The setting up process is relatively short and simple and usually takes only a few weeks. The procedure for setting up a company in North Cyprus the T.R.N.C is dependent on the type of Company you wish to form. If the Company being set up has the object of holding Immovable Property, at least 51% if the majority of the Shareholders and/or Directors of the Company must be TRNC- citizens in order to ensure that the company can invest in a larger scale and bypass the requirement for permission to purchase. Otherwise, if foreign nationals make up more than 49% of the Directors and/or Shareholders, only the quota of one property may be purchased, amounting to a maximum area of 5 donums that consist of one dwelling per household and the Company must apply for permission to purchase property to the Council of Ministers. If you are a foreign national looking to start a Company in the TRNC with the object of holding immobile property and are finding difficulty in finding a majority of TRNC-citizen shareholders and/or Directors to run the Company, we can assist you in finding local citizens to act as trustee shareholders for you.
For most of the other Company types, however, the majority of Shareholders and/or Directors may be foreign nationals. The Local Company structure is very prominent within the real estate sector as this is a growing industry in the TRNC.
Please do not hesitate to contact our office should you require any further details.
This article is intended for general information purposes only and does not constitute legal or professional advice. BHLEX Law and Consultancy Bureau does not accept liability for any loss which a person may incur as a result of relying on or otherwise using this information.