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Opening a Business

Opening a Business

Foreign Direct Investment has helped develop the TRNC economy, especially in tourism, construction and services. That's why the government welcomes foreigners opening businesses and provides them with full rights to the company in many sectors with or without local partners. Businesses may be a small shop, spa salon, restaurant, investment company or a five star hotel. Many companies are foreign owned and ran for years. To open a business at least two people will be needed. They can be foreigners or partner with Turkish Cypriots. If the business is real estate or construction related, the foreigner must hold 49% shares and the local representative 51%. To set up your business you'll need to deposit €50,000. into a local bank.

Seeking advice of a solicitor is wise as there's different rules for different types of companies. You'll also need a local accountant to make appropriate applications to the Council of Ministers. Memorandums and Articles will specify the company’s function, management structure and share information

You'll also need a business permit (a stamp in your passport), which is specifically issued to Company Directors, which is different to work or residency permits. Other permits might also be needed e.g. if you're serving alcohol, a beverage license from the local council. You'll need to register with the tax office, the social security and pensions departments. There will be costs involved for any workers you employ, paying for their permits and their monthly state contributions. As a Director you'll also need to make state contributions. Tax Certificates and Certificate of Incorporation have to be displayed in your premises at all times and must be kept in their original forms.

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