Advantages And Set-Up Of Free Zone Company In Northern Cyprus
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In our last blog post, we discussed about the advantages and benefits of establishing International Business Companies in Northern Cyprus. In today’s post, we will be looking into establishing a different type of company which is also very tax beneficial and known as Free Zone Companies.
So, what is a Free Zone Company?
Legally free zone is an area which, although situated in the boundaries of the TRNC, is classed as a separate legal area in which certain legal and administrative rules are applicable in the rest of the country do not apply and in which there are expanded incentives for individual and commercial activities.
Free Zone Companies are those companies set up near the Famagusta Port of Northern Cyprus. Due to its location it provides gateway to Europe, Asia and Africa. These companies attract a lot of international business owners and investors; therefore, they encourage international business and trade in TRNC. Businesses such as manufacturing, Banking and Financial services, insurance, Storage & Export of Goods, assembly & Repair of Goods and transit trade, service companies plus any other type of activity approved by the TRNC Council of Ministers may provide services under a Free Zone Company.
Advantages of Free Zone Companies:
Free Zone companies have a number of advantages to offer.
- Benefiting from a large number of tax incentives:
- All income derived from activities and operations undertaken by producers in the Free Port and Zone are exempt from Corporate and Income Taxes.
- All income derived from activities and operations undertaken by investors other than producers are exempt from Corporate and Income Taxes when the goods and services are not directed to the Turkish Republic of Northern Cyprus.
- All kinds of operations including sale of goods to foreign countries and Free Port and Zone in North Cyprus as well as buying of goods are exempt from custom duties, VAT and indirect
- Opportunity to carry out Transactions Freely:
North Cyprus Free Trade Zone companies also benefit from no restrictions on transfer of their profits and retained earnings abroad.
- Currencies used in free zone are convertible foreign currencies
- Freedom to employ foreign specialists to work in the Free zone without restriction
- No limit to the length of time goods can be stored in the Free Zone
- No Annual Renewal Fee:
Free Zone Companies License fee is 2,500. -USD. This fee is only paid once, and no annual renewal fee is required.
- Low incorporations Costs:
a-) Capital: The minimum paid -up capital required of IBC is €50.000.-Euro. This payment will be lodged in the account set up under the Company and may be withdrawn after official establishment of Company.
b-) Application Fee: The application fee varies between 200.-USD – 1,000. -USD and is determined according to the type of business activity of the Company.
- No visit required to Northern Cyprus:
The process of establishing Famagusta Free Zone Company in Northern Cyprus is easy our in-house lawyers will guide you through all the steps and will help you establish it safely and securely.
Northern Cyprus is a very open country when it comes to foreign businesspeople, international entrepreneurs and these can perform various activities in this country without being required to come here. This is possible through a power of attorney granted to a trusted person, such as a lawyer in Northern Cyprus.
Our in-house lawyers can help you in performing various tasks including free zone company establishment and opening bank account remotely through power of attorney.
We are the leading Northern Cyprus based business set up service provider dedicated to offering world class company formation services in Northern Cyprus in the most efficient and cost-effective manner. The whole procedure will be dealt with our in-house lawyers and accountants who will guide you through all the steps. Your Company will be established in no time. All you need to do is decide what type of business you would like to carry out and sit back and let us deal with the rest.
Finally, as always it is a privilege to live, invest and have company in Northern Cyprus and we are continuing to release content that will be relevant to help everyone on the other side. As well as on www.privilegedinvestment.com you will find out on YouTube, Twitter, Instagram, Facebook, LinkedIn.
You can also attend to one of our Live Webinars to have more information as to the current situation and current beneficial property offers in Northern Cyprus including legal and tax advice prepared by our professionals in our team.
For any possible questions contact us from firstname.lastname@example.org