Can a foreigner open a business in Northern Cyprus?

Yes. Foreign nationals can own 100% of a TRNC company. You need to register the company with the Registrar of Companies, obtain a tax number, and get a business licence. If you will work in the business, you also need a work permit.

How much does it cost to register a company in the TRNC?

Total setup costs are approximately 5,000–12,000 TL including registration fees, notary, and business licence. Ongoing costs include accountant fees (1,500–4,000 TL/month) and annual filing.

What is the corporate tax rate in Northern Cyprus?

The corporate tax rate is 25%. VAT (KDV) is 18% (with reduced rates of 1% and 5% for certain goods). Income tax is progressive from 10% to 35%.

Opening a Business in Northern Cyprus — Step-by-Step Guide

Company types, registration, licensing, tax, and everything you need to start a business in the TRNC.

Types of Companies

Limited Liability Company (Ltd. Şti.)

•Most common for small-to-medium businesses
•Minimum 1 director, 1 shareholder
•Shareholders' liability limited to capital invested
•Minimum capital: 10,000 TL (does not need to be fully paid up)

Joint Stock Company (A.Ş.)

•For larger businesses
•Minimum 5 shareholders
•Minimum capital: 100,000 TL
•Subject to stricter regulations

Sole Proprietorship (Şahıs Şirketi)

•Simplest form — one person
•Unlimited personal liability
•No minimum capital
•Best for freelancers and small traders

Registration Process

Step 1: Choose Company Name

•Check name availability at the Registrar of Companies
•Name must be unique and not misleading

Step 2: Notarise Documents

•Articles of association (signed before a notary)
•Signature declarations
•Company registration form

Step 3: Submit to Registrar

•File at the Ministry of Economy Registrar of Companies
•Fee: ~2,000–5,000 TL
•Receive company registration certificate

Step 4: Tax Registration

•Register with the Tax Office (Vergi Dairesi) for a tax number
•VAT registration if applicable (VAT rate: 18%)

Step 5: Social Insurance

•Register with the Social Insurance Office (SGK)
•Required for all employees

Step 6: Business Licence

•Apply for a business operation licence from the local municipality
•Requirements vary by business type (restaurant, shop, clinic, etc.)

Step 7: Bank Account

•Open a company bank account with your registration certificate

Taxation

Tax	Rate
Corporate tax	25%
VAT (KDV)	18% (reduced: 1%, 5%)
Income tax	10–35% (progressive)
Employer social insurance	~15% of salary
Employee social insurance	~10% of salary

Foreign Business Owners

Foreign nationals can own 100% of a TRNC company. However:

•A work permit is required if you will work in the business
•The company must have a registered office in the TRNC
•Annual filing with the Registrar is required

Costs Summary

Item	Cost (TL)
Company registration	2,000–5,000
Notary fees	500–1,500
Business licence	500–2,000
Accountant (monthly)	1,500–4,000
Legal consultation	1,000–3,000
Total setup	~5,000–12,000