How to Open a Business and Obtain a Work Permit in North Cyprus
- John Nordmann
- Dec 13
- 3 min read
How to Open a Business and Obtain a Work Permit in North Cyprus
A Complete Guide for Foreign Entrepreneurs
Opening a business in the Turkish Republic of Northern Cyprus (TRNC) has become increasingly attractive for foreign investors looking for a stable, low-tax environment and a high-quality Mediterranean lifestyle. While the process is straightforward, it does require understanding the legal and administrative steps relating to both company formation and work permit applications.
This guide provides a clear, factual breakdown of everything you need to know to legally open and operate a business — and secure the work permit that allows you to work for your own company in North Cyprus.
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Why Start a Business in North Cyprus?
North Cyprus offers several advantages to foreign investors:
A favourable tax regime compared to many European jurisdictions.
Relatively streamlined company registration processes.
Low operating costs and access to skilled local labour.
Strong demand in hospitality, property development, tourism, retail, education, and professional services sectors.
Foreign nationals are permitted to own or co-own businesses in TRNC, although property-owning companies must comply with special shareholding rules.
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Step 1: Decide on Your Business Structure
Before registration, determine:
Company type
Most foreign investors choose a Limited Company, which offers:
Flexibility
Limited liability
Straightforward management structure
Shareholding requirements
Companies not acquiring real estate may often be 100% foreign-owned.
Companies acquiring or holding real estate must have:
At least 51% TRNC citizen ownership, and
A board majority of TRNC citizens.
Key decisions at this stage include:
Business activity (e.g., consultancy, hospitality, retail, services).
Directors and shareholders.
Registered company address.
Share capital requirements (foreign owners typically deposit approx. USD 49,000 blocked capital).
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Step 2: Register Your Company
Company formation is handled through the Registrar of Companies.
Documents required:
Proposed company name.
Memorandum & Articles of Association.
Passport copies of all shareholders and directors.
Police clearance certificates for foreign directors/shareholders.
Proof of registered office.
Bank confirmation of blocked share capital (if applicable).
Process timeline:
If documentation is complete, registration typically takes 7–10 days.
After registration:
Obtain a tax number.
Register the company with Social Insurance and the Tax Office.
Open a corporate bank account.
Apply for any sector-specific licences (hospitality, retail, tourism, etc.).
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Step 3: Obtain a Business Permit (Where Required)
Certain foreign-owned companies must secure a Business Permit through the Immigration Department.
Key points:
Valid for one year.
Annual fee approximately 1,000 TL.
Required before applying for work permits in many cases.
This permit confirms the legal status of the foreign shareholder/company owner operating within TRNC.
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Step 4: Apply for Your Work Permit
To work legally in North Cyprus — even in your own business — you must hold a valid Work Permit issued by the Ministry of Labour and Social Security.
Requirements include:
Employment contract between your company (as employer) and you (as employee).
“No Debt” certificate from Social Insurance confirming your company has no outstanding liabilities.
Medical examinations (blood tests, chest X-ray).
Passport copy and biometric data.
A €250 security deposit plus a notarised undertaking for third-country nationals (as of 2025).
Permit details:
Initial permits are usually valid 6 months to 1 year.
Your company acts as the “sponsor” for your work permit.
You must not work until the permit is approved.
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Step 5: After Your Work Permit Is Approved
Following approval:
Collect your permit card from the authorities.
Register fully for monthly Social Insurance and Tax payments.
Apply for your Residence Permit, which typically requires proof of valid work status.
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Step 6: Renewals and Ongoing Compliance
To maintain legal working status:
Renew your permit at least two months before expiry.
Ensure your company is up to date with tax and social insurance payments.
Do not change employers or company structure without notifying the relevant ministries.
Avoid working at any time when the permit has lapsed.
Common Pitfalls to Avoid
Assuming you may operate before obtaining a work permit.
Misunderstanding the 51% local ownership rule for property-holding companies.
Missing renewal deadlines.
Failing to maintain tax and insurance compliance.
Hiring foreign staff without ensuring they have legal permits.
Download the Checklist
To make the process even clearer, you can download the one-page practical checklist created for this guide:
➡️ Download the Business & Work Permit Checklist (PDF)
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Conclusion
North Cyprus offers a welcoming environment for foreign entrepreneurs. By understanding the company formation rules, business permit requirements, and work permit procedures, you can establish and operate your business legally and efficiently.
This guide gives you a clear, structured framework for getting started — whether you're launching a consultancy, opening a restaurant, setting up a retail shop, or developing a new service-based venture in TRNC.
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