Companies established in Free Port of Famagusta and active there are known as Free Zone Companies.
Conditions set in amended Free Port and District Act No 29/1983 with Company Law Section 113 should be fulfilled.
Under application for registration:
- Name search is done and confirmed.
- There is no nationality limitation for shareholders or directors of FPZ Companies and can be registered and set up by minimum 2 and maximum 50 people.
- Can bet set up with all natural and legal persons willing to be active in Free Zone.
- Article of Association and Regulations are prepared as per TRNC Companies Act.
- Identity Card or Passport copies of Shareholders, Directors, and Secretaries are required.
- Clearance Letter should be presented for shareholders except EU and Turkish citizens.
- Minimum capital for natural or legal persons who are Free Zone Company shareholders and non-TRNC citizens is 100,000 USD.
- They are subject to Income and Corporate Tax Law.
- Foreign currencies can be used for accounting records but some companies active in Free Port Zone are subject to some exemptions:
- Unless they export services to TRNC, their profits are exempted from Income Tax and Corporate Tax.
- In terms of customs duty, they are out the line of State duties and completely exempted from customs duty.
- All goods imported in relation to TAX Law are exempted from TAX.
- Profit transfer is free. However, the goods not sent abroad from Free Port and Region and profit gained by exportation of goods and services to TRNC related to transit trade is not included in this exemption.