The procedures establishment and registration of International Business Companies are the same as local private and public limited companies. International Business Companies have at least two shareholders. The minimum number of directors of an International Business Company is one. There is no requirement for the nationality of the director.

The particulars of International Business Companies are as follows:

International Business Companies include local companies which can be incorporated under the International Business Companies Law 38/2005.
International Business Companies are subject to low rate of Corporation Tax which is 2.5 % on net profit. In order to qualify as International Business Company for tax reasons the operations of the company must be conducted outside the TRNC. The memorandum and articles of the association of an international business company prohibits the local operation of the company. Under the company’s constitution the operations can only be conducted outside the TRNC.

Under the International Business Companies Law the minimum share capital of the International Business Companies is € 20,000 (Twenty Thousands Euros).

€ 500 (five hundred Euros) is charged for the applications of the International Business Corporations. This amount can be increased or decreased by 50% (fifty percent) by the decision of the Council of Ministers.

Those listed below can apply to the Ministry of Economy to establish an International Business Company in the Turkish Republic of Northern Cyprus under this Law:

1. Foreign real persons,
2. Foreign legal entities,
3. The citizens of the Turkish Republic of Northern Cyprus residing abroad.

For the financial requirements of the investment projects, the International Business Companies cannot demand credit from state or, any local or foreign bank operating in the Turkish Republic of Northern Cyprus and/or investment companies or from the people residing in the Turkish Republic of Northern Cyprus.

However, this article does not apply to the Off-Shore Banks established in accordance with the Off-Shore Banks Law which is in force in the Turkish Republic of Northern Cyprus.

International Business Company cannot derive any financial source from any bank, credit company and real persons or legal entities within the Turkish Republic of Northern Cyprus.
The activities carried out by International Business Companies are not subject to Income Tax Law, Money and Exchange Law, Corporation Tax Law.

Notwithstanding the tax rates specified in the Corporations Tax Law and Income Tax Law, the International Business Corporations, shall be subject to a tax at the rate of 2.5% (two and a half percent) over the base value to be determined according to the rules of Corporations Tax Law and Income Tax Law. Following each financial period the mentioned tax is paid to the cashier’s office of the Inland Revenue within 5 (five) months the latest. Notwithstanding any provisions stating the contrary, no tax, duty and fee shall be imposed on the International Business Corporations except for their overseas transactions.

International Business Company can open any kind of account including a deposit account in the banks operating in the Turkish Republic of Northern Cyprus. Income surcharge chargeable on the interest from basic deposits of International Business Companies shall not exceed the corporation tax rate of %2.5 (two and a half percent) imposed on the International Business Companies. The withholding tax constitutes the absolute tax of interest income of International Business Companies, and the deduction and/or return of the said tax is not possible in the event of a loss or in any other way.
No tax is imposed on dividend distributable to the shareholders of the International Business Company.
No VAT and/or any kind of tax shall be charged on copyrights and any kind of fees and service charges and interests payable by the International Business Company to real persons and legal entities operating outside the Turkish Republic of Northern Cyprus.
International Business Company shall not be subject to immovable property tax; International Business Company’s shareholders and/or trustees shall not be subject to inheritance, income and/or corporation tax concerning the transfer of shares.
The income obtained by the International Business Company on the buying and selling of properties outside the country, is exempted from tax.
Notwithstanding any provisions stating the contrary in any other Law, International Business Corporations do not pay customs duty for the products enlisted below, except for the contributions to Defence Fund:

1. Motor vehicles (buses, motorcycles, minibuses and caravans are not included)
2. Office vehicles (air-conditioners and consumer goods are not included).
3. Household goods (Furniture and conditioners are not included)
4. Yachts and similar marine vehicles.

International Business Companies, are required to keep their accounting records in any of the currency which is either YTL (The New Turkish Lira) or any other convertible currencies as specified by the Central Bank.
International Business Companies can open accounts in the banks operating in the Turkish Republic of Northern Cyprus where they can transfer the funds or projects obtained from their transactions outside the country and they can use these accounts to meet their expenditures.
International Business Companies which opt to open up an office and employ a staff are required to recruit a citizen of the Turkish Republic of Northern Cyprus.
The minimum share capital of an International Business Company should be 20,000 € (Twenty Thousands Euros).
However, in the event of employing more than one staff, the number of the foreign national staff who are employed should not exceed three times the number of the staff of Turkish Republic of Northern Cyprus origin.

1. International Business Company which opts to have an office and employ staff in the TRNC should pay an operation fee of 2,000 € (Two Thousand Euros).
2. International Business Company which opts not to open up an office or employ a staff should pay an operation fee worth of 5,000 € (Five Thousand Euros) per annum.

The Operation Fees are payable to the Inland Revenue within 30 days after date of registration and after the end of the each calendar year.
International Business Company pays half the amount of taxes imposed upon the company on the capital increase or transfer of shares.
At the end of each financial year, International Business Companies are required to file their audited financial statements with the Ministry of Finance and the Ministry of Economy. The submission of the audited financial statements should not be later then four months following the end of the financial year.