i'm thinking of starting a business in the trnc

anmarsil


Joined: 29/08/2010
Posts: 2

Message Posted:
29/08/2010 13:15

HI as its says in the subject i'm thinking of relocating my business to the TRNC.

but have heard to do so it has to have a controlling 51% stake by a trukish citizen can anyone tell me if that is correct

cheers Tony

zerochlor


Joined: 03/04/2009
Posts: 4024

Message Posted:
29/08/2010 13:30

Although quite easy,still not without a few headaches.



Registering a LTD company is also not as cheap as we are able to do the same in the UK,expect to spend in the region of 4000 to 5000 TL



You can open a company on your own,but you will have to lodge a lot of money with a bank,you can still draw the interest on this money.

crofter


Joined: 16/12/2008
Posts: 1035

Message Posted:
29/08/2010 16:16

To form your own company without a Cypriot partner you will require 100.000 dollars to be 'blocked' until the company is formed. Then the biggest percentage of this money is 'unblocked' but the remainder is still blocked for a period of 18 months. This is to ensure that should you default on paying taxes, social sigorta etc then the Government can take the money from this 'pot'.



Hope this helps.

ang1706


Joined: 28/01/2009
Posts: 570

Message Posted:
29/08/2010 17:12

The advice is correct and DO NOT get yourself involved with someone who already has a company and you can join his company with a deposit of 10000 lira held for tax purposes as yes he will dissappear like my so called New Zealander Howard Hobson did.



Go alone and be prepared for pitfalls but then again there are a lot of flourishing business's so weigh up your options.

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
29/08/2010 17:42

$100.000 rulw applies to Cypriots as well.15000 tl thats held for 18 months doesnt.

Diogenes


Joined: 12/11/2008
Posts: 139

Message Posted:
29/08/2010 17:48

Yorgozlu, are you 100% that this rule also applies to Cypriots?

cosworth



Joined: 20/07/2010
Posts: 243

Message Posted:
29/08/2010 18:03

what about turkish citizen ?

nostradamus


Joined: 15/04/2008
Posts: 557

Message Posted:
29/08/2010 21:06

Don't bother. The government here don't really want anybody in business as far as I can tell - either Cypriots or foreigners. There is nothing but hassle and expense wherever you turn and the end result simply isn't worth the aggro. Find a more business friendly country.

Pixie


Joined: 18/03/2009
Posts: 489

Message Posted:
29/08/2010 22:20

Then you need to think about paying 23.5%of your profit as tax..simply not worth it.

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
29/08/2010 22:28

And the cost of employing people due to work permits etc. More businesses closing than being started.

proger1



Joined: 18/04/2009
Posts: 2919

Message Posted:
29/08/2010 22:29

Definition of Irony:

Recieving advice about starting a business in North Cyprus from the same forum that wants everything as cheap as possible and complains that businesses over charge compared to other countries.



It is obviously possible if you listen to those who have done it but joking aside, there seems to be a lot to get around to do things legally and not much profit margin unless it is a really good and original idea but then it might just get copied very quickly if it is successful.



I wish you success but I think it might be a hard slog.



Paul

Chris and Sue


Joined: 07/08/2008
Posts: 272

Message Posted:
30/08/2010 08:11

It is hard to get your foot on the ladder, better to go it alone without a TC partner, if you have the funds



Sue

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
30/08/2010 08:30

Diogenes,

re msg 6;



YES.%100

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
30/08/2010 10:19

anmarsil,

As this is you first post, and you feel the need to ask I doubt you have done enough research to have a clue.

Whatever you were thinking of investing, take it to one of the casinos and put it on red or black ............... much better odds.

anmarsil


Joined: 29/08/2010
Posts: 2

Message Posted:
31/08/2010 11:26

Thank you for all your replies I wasn't asking how to start a business but merely asking weather I have to hand over a controlling percentage of it to a turk. AS I'm not in the habit of investing money for nothing, heads up people there is a service coming to North Cyprus in the new year that will NOT cost the expat community a penny just a little thought and you wouldn't even have to leave your home.

mistress


Joined: 29/08/2009
Posts: 57

Message Posted:
30/10/2010 12:36

Question: Can I open a branch of my UK registered business in North Cyprus? Would I still need a Cypriot partner or to pay the $100k?

loulou



Joined: 14/05/2008
Posts: 785

Message Posted:
30/10/2010 14:24

for get about it its not worth the trouble

mistress


Joined: 29/08/2009
Posts: 57

Message Posted:
30/10/2010 15:12

Thanks for the advice Loulou but hopefully the advice costs me nothing and I can make my decision from there as to whether it will be viable - nothing ventured, nothing gained!

ozankoys


Joined: 20/06/2008
Posts: 905

Message Posted:
30/10/2010 15:23

Hi as far as I am aware you do not need a Turkish Cypriot partner unless you are in the property business or intending to purchase property

proger1



Joined: 18/04/2009
Posts: 2919

Message Posted:
30/10/2010 15:26

mistress, as it is a UK registered business I would be very surprised as to it having any difference at all to the standard rules in North Cyprus but maybe I am completely wrong, I just have a slight feeling that if having a UK registered business avoided either of the situations then everybody would have opened a uk business. I have a feeling someone would have thought about that before now to be honest but this being North Cyprus it is possible that the rules have changed without it being announced in a foreign language (that being english and quite rightfully so), my advice would be to wait to see if you get an answer from soemone like Yorgozlu or Ismet or even better still, try to get the answer from someone like Naomi Mehmet, that is what I would do if I was serious about getting an answer.

mistress


Joined: 29/08/2009
Posts: 57

Message Posted:
30/10/2010 15:37

Thank you Proger1, it is just I have seen British businesses advertised here but maybe that means they just speak English/are catering for the British market. I will wait to see if anyone replies on this forum then if not I will seek legal advice from Naomi Mehmet. Yes, I agree if we could somehow bypass all these costs and regulations here everyone would be doing it, but you know what its like here - very difficult to find the latest regulations as they seem to change all the time.......

aussiemike


Joined: 11/09/2010
Posts: 64

Message Posted:
30/10/2010 15:42

my recent research shows that if you open a business in TRNC and generate 100% of your revenue off shore, then you need: E20000 as a guarantee to start with, must employ 1 TRNC citizen and rent an office. you then pay 2.5% of company profit in tax (apparently this is reducing to 1% soon). apparently also you can find someone who will work your 1 TRNC employee (for a fee without working - not a bad job i must say).



you would then pay tax on your wages (directors should be able to minimise this with creative accounting)



this is what i am planning on doing when i set up in TRNC as all of my work is off shore...



anyone got a better solution?



ie do any consultants base themselves in TRNC and generate income elsewhere with a different structure in place - remembering that i need the business structure to obtain a permit (non EU here..)



there is quite a bit of info around on setting up businesses in the TRNC via the web..

proger1



Joined: 18/04/2009
Posts: 2919

Message Posted:
30/10/2010 15:50

It really isn't all that bad mistress, the only thing I have had issues with is crossing to the south with my wife because she carries a non EU passport and the GC's will not allow it even though by EU legislation they have to if she travels with me. All things in NC are possible if you are patient enough and much easier to achieve than in some countries I have been.

I think there are just a few too many members who think that just because the UK has a more acceptable system and that the majority of members are british we should do things the British way, the irony is that the system in place is the remnance of the British system that they left behind.

I would seriously look in a different area for advice on this one, IMHO anyone who spends much of their time on here does not have a successful business in NC. I am sure someone will dispute that but I would expect nothing less.

mistress


Joined: 29/08/2009
Posts: 57

Message Posted:
30/10/2010 15:54

Hi Aussiemike

I guess if you do consultancy work and your business is generated out of the TRNC then you would not have to pay tax here. There seem to a number of people working in the Ukraine and having their salary here tax free. However if you were going to benefit from providing a service in the TRNC I guess this would be different. If one advertised a service ex TRNC i.e in the UK/on the internet there may be a way round it, however if a presence is required here, or the service is being carried out here I guess one would be liable to the taxes/set up fees.

zanky


Joined: 17/10/2008
Posts: 354

Message Posted:
30/10/2010 15:54

I think you should look at all the points raised here, then take the questions resulting from them and go and talk to an accountant. They are more used to what is required than the solicitors are. Think well and hard and try to ask as many questions as you can. Its not easy, in fact very hard work to have a business here.

aussiemike


Joined: 11/09/2010
Posts: 64

Message Posted:
30/10/2010 15:58

i found these people helpful in getting my advice (i cant vouch for them though)....appreciate if there is any local feedback on them!



Derviş Kemal Deniz BA(Hons)FCA

D.K.Deniz & Co Chartered Accountants

Lefkoşa

Derviş Deniz



Naomi Mehmet LL.B. (Hons)

Advocate



Muharremoglu Apt No 1, Sariyer Sokak, Girne, Mersin 10 Turkey

Tel: (009) 0392 816 0440

Email: naomi@nmplegal.com

Tenakoutou



Joined: 27/07/2009
Posts: 4110

Message Posted:
30/10/2010 21:20

ang1706/Msg 4: 'as yes he will dissappear like my so called New Zealander Howard Hobson did.'



Would you care to elaborate? - Otherwise, your posting suggests slanderous connotations that are unacceptable.