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NCR interpretation: active, unpaid management may fall within the İş Kurma İzni requirement

Rule record · last verified 20 September 2026

In force. Start date not confirmed in this record.

Rule

NCR reads the İş Kurma İzni's conjunctive trigger test (residence-intent plus acting in the capacity of employer) as capable of being met by a foreign director who is actively, personally managing a TRNC company's operations in the TRNC, even where that person draws no formal salary — because the Law's 'İşveren' (employer) definition turns on control over hiring/firing and operational decisions, not on being paid, unlike the separate 'İşçi' (worker) definition, which explicitly requires a wage. This is NCR's own interpretation of the statutory text's structure and silence on remuneration for this category, NOT an explicit textual holding using the words 'unpaid' or 'without salary' — no TRNC court decision, regulator statement or official guidance confirming this specific reading was located.[1][2]

Exceptions

  • NCR INTERPRETATION, NOT A DIRECT TEXTUAL HOLDING: the underlying statutory text (definitions; Law Art. 5(3), 11, 12(1); Tüzük Art. 26-27) is primary-verified, but the specific conclusion that unpaid active management is caught is an inference NCR draws from the structure of the text, not a sentence the Law itself states. Treat with correspondingly lower confidence than a directly-quoted rule.
  • This Rule must NOT be read, cited or summarised as 'every foreign director of a TRNC company requires a work permit' — it addresses only a director who is both residing in the TRNC beyond the entry-visa period AND personally, actively managing the company's operations there. A foreign director who is neither resident in the TRNC nor actively managing it is outside this reading.
  • Passive shareholding, without active management, is NOT within this reading — see iskurma-izni-definition-and-conjunctive-trigger, which states the negative case directly from the statutory text.
  • Whether a SALARIED director needs the İş Kurma İzni alone or that permit plus a separate employee work permit remains genuinely unresolved and is not addressed here (see q-invest-work-salaried-director-permit-stacking-unresolved, held for authority confirmation).

Applies to

Who:
Investors · Company shareholders

Where this rule comes from

Authority
Assembly of the Republic (Cumhuriyet Meclisi), TRNC
Jurisdiction
Turkish Cypriot administration (TRNC)
Basis
Legislation · asserted by us within this jurisdiction
Verification
Primary source verified. We read the primary text ourselves on 20 September 2026.
Legal review
Not yet reviewed by a named legal reviewer. Marked for priority review.

Editorial note

This is NCR's own interpretation, kept as a separate record from the plain statutory-definition rule (see iskurma-izni-definition-and-conjunctive-trigger) so the two different confidence levels are never merged into one statement.

History of this rule

  • — Published following Founder approval. Founder explicitly required the NCR-interpretation status to be preserved and confidence not overstated — see exceptions. (version 1, First published)

Sources for this rule

Numbered in order of first use. Each entry names the kind of source it is and the day we read it.

  1. [1]
    Foreigners' Work Permits Law No. 63/2006 (Yabancıların Çalışma İzinleri Yasası), consolidated text incorporating amendments through Law 25/2025

    Central Legislation Office, TRNC · Legislation and gazettes · original in Turkish · accessed 19 September 2026 · source record

  2. [2]
    Foreigners' Work Permits Regulation (Yabancıların Çalışma İzinleri Tüzüğü), consolidated text incorporating amendments through 17 September 2026

    Central Legislation Office, TRNC · Legislation and gazettes · original in Turkish · accessed 19 September 2026 · source record

Cite this record

https://northcyprusreference.com/en/rules/iskurma-izni-active-unpaid-management-ncr-interpretation

Identifier iskurma-izni-active-unpaid-management-ncr-interpretation · Open data · challenge this rule