Foreign Companies in the TRNC

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
22/07/2009 10:27

Is it possible for a foreign company to operte in TRNC and register that it is trading here or does it need to set up a local subsidiary?





Harold

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
22/07/2009 10:58

Harold



Like most other countries a company can own another company. For example a UK registered company ABC Trading Ltd can own ABC Trading (KKTC) Ltd. The KKTC subsidiary would be responsible for the taxes in the TRNC for whatever business they do locally ie KDV Sigorta etc.



It is unlikely to happen due to the lack of taxation treaties unless it was a Turkish company.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
22/07/2009 11:03

Harold,

A foreign company can be registered as such but I do not know the reequirements. Most Turkish Banks from Turkey are registered as such. Turkiye Isbankasi was the first to do so pre 1974.

ismet

LynxLtd


Joined: 24/04/2009
Posts: 46

Message Posted:
22/07/2009 20:15

Harold, if you plan to trade locally anywhere then registering a company or trading name is necessary. Depending on the jurisdiction of your base company if you plan to trade internationally through a subsidiary or branch then an offshore or holding company can hold the shares of the foreign company (mainly for taxation purposes). Hope this helps. Lynx Management

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
23/07/2009 10:41

Thank you for your replies, I am involved in several comanies that trade outside their own international borders but in TRNC my involvement is with a TRNC company.



This enquiry is for a colleague so what would be the procedure. Will a bond have to be deposited and work permits obtained for non TRNC Directors?





Harold

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
23/07/2009 15:55

Harold



It depends on what kind of company you wish to set up.



If your company is going to do business in the TRNC, which does not include the freezone in Famagusta, then you would need to pay the bond as it stands at $100,000 unless you are a Kimlik card holder.



On the other hand if you business is not going to do business in the TRNC you can open an IBC using nominee directors. This company is not allowed to do business in the TRNC unless it is done at the customs free zone. The bond for this is around about the 45000 TL mark. Nominee directors cost around €500 per year each. I'm sure that IBC's have registrictions on residency as the taxation levels are much less than Ltd companies.



The set up costs for both are similiar in terms of what you have to pay an accountant.