Company And Corporate Law

The Turkish Republic of Northern Cyprus (TRNC) presents new opportunities for foreign investors in its continuously evolving economic environment, particularly in the real estate market where construction development is a growing industry. The procedure for forming a company in North Cyprus through the TRNC is determined by the type of company you wish to establish. The fundamental law governing the formation of companies in North Cyprus is the Companies Law (Cap 113). This law outlines the processes and regulations for company formation, as well as the authorities and responsibilities of the companies. We provide assistance to individuals who want to establish businesses in North Cyprus. Our services aim to navigate the process efficiently and ensure compliance with all requirements.

If your company’s primary purpose is to acquire and hold immovable property in The Turkish Republic of Northern Cyprus (TRNC), there are specific regulations regarding the composition of shareholders and the board of directors. The following conditions must be met:

1. Majority Shareholding: The majority (at least 51%) of the company’s shares must be registered in the name of a TRNC citizen or a TRNC legal entity. This ensures that the company is predominantly owned by local individuals.

2. Board of Directors: The majority of the board of directors must consist of TRNC citizens. This means that TRNC citizens should hold more director positions than foreign individuals.

By adhering to these conditions and establishing a company structure with majority TRNC ownership and control, you can invest in larger-scale property acquisitions without the need for permission from the Council of Ministers. (Limitations imposed on foreigners, such as the quota of one property (house or flat not exceeding 5 donums or land not exceeding 1 donum)

If you are a foreign national seeking to establish a company in the TRNC with the intention of holding immovable property and you must  appoint local citizens to act as trustee shareholders on your behalf, it is crucial to seek legal advice to protect your interests. This can be done through a deed of trust, where the nominees hold the shares and fulfil directorial responsibilities, while you maintain the beneficial ownership and control over the company.

However, if you wish to establish a company to be foreign nationals and/or foreign controlled company – and constitute more than 49% of the Directors and/or Shareholders, there are certain restrictions on property purchase for foreigners, such as the quota of one property (house or flat not exceeding 5 donums or land not exceeding 1 donum and foreign-controlled company must apply for permission to purchase application.

If you wish to open a business as a foreigner in North Cyprus and have no intention of purchasing any immovable property in the name of the company, all shareholders and directors can be of foreign nationality. The process of forming a company is relatively quick in such cases. Please feel free to contact us for a consultation on the requirements and procedures involved.