Newsroom
A growing number of companies linked to Turkish interests and operating in the government-controlled areas of Cyprus has raised concern among lawmakers, prompting plans for tighter legal safeguards.
During a recent session of the House Audit Committee, officials confirmed that Greek Cypriot lawyers have been assisting such firms with company registrations. Authorities from the Legal Service and the Registrar of Companies told MPs they are preparing two legislative proposals aimed at preventing these businesses from acquiring property in the free areas. Lawmakers were assured the matter is being treated as a priority.
Data presented to the committee showed that 30 companies with Turkish interests are currently recorded in the Registrar’s database. However, officials warned the true figure could be higher, noting that Turkish nationals may be concealed within complex ownership structures that are difficult to trace.
In response, the Audit Committee called for immediate legal changes that would explicitly empower the Registrar of Companies to reject registration applications on national-interest grounds without facing the procedural obstacles that exist today.
Registrar Irene Mylona Chrysostomou told MPs that the office has followed an internal policy for the past six years: no registration or amendment involving companies with Turkish interests proceeds without input from the relevant authorities. Once those views are obtained, the final decision rests with the Registrar.
She added that refusals have already been issued in some cases. According to her testimony, affected applicants, along with the Cypriot lawyers representing them, have filed complaints and, in certain instances, taken the matter to court.
The proposed legislation is expected to clarify the Registrar’s powers and strengthen oversight of foreign-linked corporate activity in the free areas.
