Definition
Companies with foreign or domestic investors, companies with headquarters in TRNC, companies dealing with import and export, banks, insurance companies and foreign currency companies are called as Local Company.
Relevant Law
Legal formations of Limited Companies in TRNC and matters, which affect these legal formations, are regulated by Section 113, Limited Companies Act. Basic rules and principles of this Act are similar to UK Corporate Tax.
Registration
Application under registration:
- The first action is to apply for the confirmation of company name.
- Article of Association and Regulations are prepared.
- Certified copies of identity cards and/or passports of founders are submitted to Registrar of Companies.
- M.Ş1, M.Ş2, M.Ş 3 forms are filled in and signed.
- Company registration fees are paid.
- A Clearance Letter is obtained for Turkish and non-EU / foreign citizens.
- In case of foreign shareholders, minimum capital should be 100,000 USD.
- Certificate of Tax payment guarantee in the amount of 15,000TL or minimum 10% of the capital for 18 months for foreign directors should be obtained from TRNC Revenue and Tax Office and a bank registered in TRNC in return for Bank Letter of Guarantee.
- For the shares of foreign shareholders Capital Payment Receipt is obtained from a bank active in TRNC.
As per Tax Liabilities Income Tax Act:
- Balance sheet, Income Statement, and postscript once in a year.
- Monthly TAX return should be given to Tax Office.