Requirements and general information in respect of registration of an International Business Company (IBC Company) in TRNC.

1. General Information:

i. Minimum number of shareholders is two.

ii. Shareholders must be of foreign origin and must not ordinarily reside in TRNC. TRNC citizens whose permanent place of residence is outside TRNC are also eligible to be shareholders.

iii. Minimum share capital is € 20,000,00 which has to be deposited at one of the local TRNC banks, prior to application. This money will be at your disposal once the company is incorporated.

iv. Application will be made by us, on your behalf, to the TRNC Ministry of Economy together with the Memorandum and articles of Association of the prospective IBC Company and the receipt verifying that the minimum share capital of € 20,000,00 has been deposited.

v. The IBC Company is liable to corporation tax only at the rate of 1% (previously 2,5%) of taxable profit, payable after the 5th month of the end of fiscal year. (i.e. not later than 31st May).

vi. The annual license fee of International Business Companies (IBC) is € 5,000,00 per annum. Annual license fee is payable on the following month of incorporation. There after at the end of each January.

vii. In the event of setting up an office, at least one of the employees must be a TRNC citizen.

viii. There is no tax on distribution of dividends. Furthermore, there are no exchange control restrictions on such distributions, subject to such distributions, being affected through official bank channels.