Are you on the hunt for the perfect place to set up your business? The global market for business-friendly destinations is ever-changing, with opportunities fluctuating and some long-favored spots on the map losing their appeal. In contrast, Northern Cyprus remains a welcoming haven for foreign entrepreneurs and investors, offering exceptionally favorable conditions. The company registration process here is typically both fast and easy, though it may differ based on individual company requirements.
At present, Northern Cyprus is witnessing a remarkable economic boom, marked by a rapidly growing real estate market, a surge in tourism, and a flourishing education sector. The government of the Turkish Republic of Northern Cyprus (TRNC) is keenly fostering an environment that is supportive of foreign investment, thereby nurturing a business-friendly atmosphere. Due to this, a variety of new investors are drawn to the region. Setting up a business in the Famagusta Free Zone is particularly advantageous, as it offers significant tax benefits and the chance to broaden the scope of your business operations.
Famagusta Free Zone: a hub for global business
Unless you are not familiar with the concept yet, a Free Zone is a designated area within a nation, governed by specific legal regulations. Companies registered here are recognized as free zone residents.
In Northern Cyprus, the Famagusta Free Zone is home to entities known as Free Zone Companies (FZCs). A bustling hub, it comes with a beneficial location and a host of incentives that make it an attractive destination for businesses from around the globe. With its advantageous position at the crossroads of major navigation routes in the Mediterranean, the Famagusta Free Zone is their key entry point to Europe, Asia, and Africa.
The creation of the Famagusta Free Zone is fueled by several principal goals:
- To draw foreign investment and spur economic development.
- To merge the local economy with international markets.
- To offer a location that is strategically attractive to global investors.
- To cater to the economic requirements of specific regions.
Industries poised for success in Northern Cyprus
The Famagusta Free Zone in Northern Cyprus is an ideal setting for diverse business ventures, all thanks to its prime location, strong infrastructure, and enticing incentives. The following business types are particularly well-positioned to reap the benefits of establishing operations in the region:
- Technology and Innovation: Companies specializing in IT, software development, and tech innovation leverage the zone’s regulatory freedom and tax benefits. The zone’s infrastructure supports high-tech operations, making it an ideal location for startups and established tech firms looking to expand their footprint in the Eastern Mediterranean region.
- Logistics and Warehousing: With its proximity to the Famagusta Port, the zone is perfect for logistics companies. Firms that specialize in shipping, warehousing, and distribution would find the customs duty exemptions and streamlined trade regulations advantageous for their operations.
- Manufacturing and Production: Manufacturers about to optimize costs while accessing new markets will find the Famagusta Free Zone appealing. The zone’s tax exemptions on profits and the absence of customs duties on imports and exports create an economically viable setting for manufacturing businesses.
- Consultancy and Services: Consulting firms, especially those in finance, legal, and business strategy, benefit from the zone’s offerings. The opportunity to employ foreign experts and the lack of restrictions on profit repatriation make it a strategic choice for service-oriented companies.
- Education and Training: Educational institutions and training centers also thrive in the Famagusta Free Zone. The region’s growing reputation as an educational hub, combined with the ability to hire international faculty, allows it to offer excellent education to students from any corner of the world.
From burgeoning tech startups to established logistics behemoths, the zone’s facilities and incentives are designed to support business growth and international trade. Companies setting up here can expect to gain from the zone’s beneficial economic policies and tap into the wide-reaching markets of the Eastern Mediterranean and the Middle East.
Key incentives for businesses in the Famagusta Free Port and region
In Famagusta, the Free Port provides a host of incentives for companies operating within its jurisdiction:
- Tax Benefits: Businesses are granted full exemption from income and corporate taxes on profits earned, as long as these profits are not derived from exports to the TRNC’s domestic market. This exemption is part of a broader economic strategy to stimulate growth and attract foreign investment.
- Customs Duties: Businesses benefit from a total exemption from customs duties. The exemption applies to all goods and services produced or imported into the zone for transit export. There are no storage charges for the first 7 days for goods, and for full containers, the first 15 days are free of storage charges, while empty containers benefit from no storage charges for the first 30 days.
- Regulatory Freedom: The Free Zone is not subject to existing laws on currency exchange and foreign trade.
- Duty Exemptions: Goods and services produced in or imported for transit export from the Free Zone are not subject to customs duties or other indirect taxes. However, goods intended for the TRNC market are taxed accordingly, including VAT.
- Profit Repatriation: FZCs are allowed to repatriate profits without limitations and are exempt from the TRNC’s profit tax.
- Employment of Foreign Personnel: The Free Zone permits the hiring of foreign professionals, including experts, engineers, and technical staff, subject to approval from the relevant Ministry or free zone operator.
Incorporating in Northern Cyprus with International Wealth
Is the idea of incorporating a company in Northern Cyprus appealing to you? International Wealth is right here to guide you seamlessly through the company registration process in the Famagusta Free Zone. Here’s what our suite of professional support services includes:
- Accounting: Ensuring timely monthly financial reports through a dedicated accountant.
- Tax Advisory: Offering extensive tax consultations to optimize your fiscal strategy.
- Business Consultancy: Providing expert advice on business operations and necessary licensing.
- Document Services: Handling the printing and management of official invoices and receipts.
- Permit Assistance: Facilitating the process for acquiring company signage permits.
- Visa Facilitation: Assisting in the application and acquisition of business and work visas.
Should you require any of the above services, do reach out to us using the contact options on the International Wealth website. With our expert support, your business dreams will soon become reality!
