Northern Cyprus offers various opportunities for entrepreneurs looking to establish their businesses. Following steps and adhering to local regulations are essential when setting up a business here. Here is a step-by-step guide to establishing a business in Northern Cyprus:
- Developing the Business Idea and Plan: The first step is to determine your business idea and create a comprehensive business plan. Your business plan should outline how your business will operate, your target audience, as well as revenue and expenditure projections.
- Selecting a Business Location and Address: The location of your business is crucial. Find a suitable business location considering options for rent or purchase. Ensure that your business location is legally permissible in Northern Cyprus.
- Determining Business Type: Selecting the type of business and choosing an appropriate business structure according to the registration process is essential. You can establish only limited company as foreigner.
- Business Registration and Permits: You need to register your company and obtain business permits by contacting the Northern Cyprus Chamber of Commerce and local municipalities. Permits may vary depending on the type of business and field of activity.
- Obtaining a Tax Number: You’ll need a tax number for your business. You can obtain a tax number by applying to the Northern Cyprus Tax Office.
- Work Permits and Employment of Staff: As a foreign entrepreneur, you may need a work permit. Additionally, if you intend to employ staff, you should adhere to labor laws and employee rights.
Consideration of local fees and taxes when establishing a business in Northern Cyprus is crucial. These generally include:
- Incorporation Fees: Company incorporation fees, chamber of commerce registration, and business permits may require specific fees.
- Taxes: Northern Cyprus has corporate income taxes. Tax rate is fixed and equal to 23.5 % at the moment. VAT depends on the type of activity and services provided and can vary between 5% to 20%.
- SSC and Other Social Services: Business owners are required to make Social Security Institution (SSC) payments for their employees.
- Property Tax: Depending on the business property, property tax may need to be paid.
To fully understand local taxes and fees, seeking assistance from a professional accountant or local business consultant is advisable. Moreover, seeking help from local experts can make the process smoother and ensure compliance with local legal requirements. Therefore, we offer our business establishment consulting services and guide in the whole process mentioned above.