Definition
International companies conduct their all kinds of activities Off-shore and acquire their income abroad. These kind of companies cannot run gambling games and pari mutual betting. Foreign citizens dwelling outside TRNC or TRNC citizens living abroad can only establish international companies.
Related Law
Conditions set in International Business Companies Act No 38/2005 Section 113 should be fulfilled.
Registration
Under application for registration:
- Name search is done and confirmed.
- Incorporation Application Form is (UİŞ form) filled in.
- Article of Association and Regulations are prepared.
- Minimum Company Capital should be 20.000 Euros, should be put at the share rate in a bank active in TRNC by shareholders and a capital payment receipt should be obtained.
- Certified Identity Card or Passport copies of Shareholders, Directors and Secretaries;
- If all or some of shareholders are foreign legal entities, Articles of Incorporation, Board Members and personal information, decision confirming the participation rate of IC to be established, Chamber of Commerce Document of the country and Balance Sheet and Income Statement of the last 2 years is given.
- Business fee (5,000 Euro) should be paid in 30 days of the registration date;
- A power of attorney should be arranged for our company to run these application procedures on your behalf.
Tax Liability
- They are subject to Income and Corporate Tax.
- 5,000 Euro of business fee should be paid annually.
However, companies active as International Companies are subject to some exemptions:
- They are subject to 1% of Corporate Tax.
- Dividend distributions are exempted from tax.
- They are exempted from VAT Act.
- They are exempted from customs duty of motor vehicles, office equipments and household goods to be imported on behalf of the business.