The legal form widely used for business undertakings in the TRNC both by foreign investors and by the local businessmen, is the private limited company. The provisions concerning the limited companies are set out in the Companies Law, Cap. 113.

In relation to set up company, North Cyprus laws allow %100 foreign partnership. However, if the field of activity is property development and the land is to be registered into the company name, the majority shares (i.e. 51%) should be hold by TRNC citizens. For such incorporation, 100.000 USD should be deposited as capital contribution of the company. This money is regarded as capital of the company, and the blockage on it is lifted once the incorporation is completed.

The provisions concerning limited companies are set out in the Company's Law, Cap 113, which is almost identical with the UK's Company Act of 1948.
Permission has to be obtained from the Ministry of Economy for foreign ownership of TRNC registered companies, usually within one or two months of application. Foreign directors are required to lodge a percentage of the company's share capital in a North Cyprus bank to obtain a bank guarantee letter of withholding tax

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