The company laws in the Turkish Republic of Northern Cyprus (TRNC Companies Law), rooted in the British legal system, offer several options for foreign-owned company registration. Choosing the right structure depends on your business goals, industry, and investment level. Understanding the different types of companies in North Cyprus helps investors select the correct path for long-term commercial development.
Limited Liability Company (Local Limited Company – LTD)
The Limited Liability Company (LTD) is the most common and popular business structure in North Cyprus, suitable for both local and international activities. In this structure, shareholders are responsible for the company’s debts and obligations only up to the amount of their share capital.
Minimum Capital: A minimum of €25,000 must be temporarily deposited and blocked in the company’s bank account.
Requirements: At least 2 shareholders, 1 director, and 1 secretary are required.
This structure is ideal for applicants seeking a simple and quick company formation process in North Cyprus.
Joint Stock Company (Private or Public)
The Joint Stock Company structure is designed for large projects and high-capital investments. These companies can issue shares publicly, and they come with more complex capital and management requirements compared to LTD companies.
Foreign investors typically choose this structure when they aim to expand regionally or plan to enter the stock market.
Foreign Company Branch
This option is suitable for international companies that want to expand their operations into North Cyprus without establishing a completely independent entity.
Capital Requirement: A minimum allocated capital of USD 100,000 (or its equivalent in euros) is required for branch operations in the TRNC.
Selecting this structure helps existing foreign companies streamline procedures and reduce overall company registration costs in North Cyprus.
Free Zone Company (Free Zone Company – FZC)
Free Zone Companies are highly attractive for international trade, export activities, and logistics operations. These companies operate within designated free trade zones and benefit from significant advantages — including 0% tax exemption on foreign income.
According to company formation conditions in North Cyprus, this structure is ideal for brands working primarily with foreign markets and seeking both tax advantages and the country’s strategic geographic location.
Choosing the Right Structure
Ultimately, selecting the appropriate company type in North Cyprus depends on your business objectives, available capital, and long-term development plans. Each structure comes with its own benefits and requirements, and understanding them clearly is the first step toward making an informed decision.
In the next section, we will examine the step-by-step company registration process in North Cyprus and the required documents for each company type to help you begin your business journey with confidence.
