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Establishing a Company for Education in TRNC

Establishing a Company for Education in TRNC

Education in TRNC:

Turkish Republic of Northern Cyprus (hereinafter referred to as "TRNC"), is the pearl of the Mediterranean that has become a strategic location with its’ geographical position and land area of 3,242 km2, European level of education and the welfare of its citizens. The TRNC has undergone important advancements in the education sector over the last few years and the education sector has accelerated the development of the TRNC economy.

 

In the TRNC, there are more than a dozen universities and more than 60,000 students who follow courses of international standards and the medium of education is either Turkish or English. The main subjects studied are engineering, computing, law, social sciences, dentistry and literature. With the increasing foreign student population, universities in the TRNC have levelled up to be comparable to the European institutions of higher education.

 

Establishing a University in the TRNC:

First of all, the process of establishing a university in the TRNC is a process that requires time and legal support, and is subject to specific legal requirements. Legislation with regards to the establishment of a university in the TRNC is subject to the relevant provisions of the Higher Education Law No. 65/2005 and other regulations issued under this Law. The requirements for establishing a university in TRNC are explained below, as per this law that was prepared under the general principles of higher education,

 

The most important matter before establishing a university in TRNC is to establish a company that will ensure education and training purposes. For more information related to how to establish a company in the TRNC please go to "Establishing a company in TRNC" on our website. It is necessary to determine the name and the logo of the university that is planned to be established after the establishment and registration of the company for educational activity in the TRNC.

 

A "Preliminary Permit for Establishment" shall be taken with an application to the TRNC Ministry of National Education and Culture for opening a new faculty, department, academy, prep school or other academic units and/or programs at the university that is planned to be established once the establishment processes of the company has been completed, the name and the logo thereof have been determined and approved. In addition, it is also necessary to apply to the Higher Education Planning, Auditing, Acredit and Coordination Board ("YÖDAK") in order to commence the planned educational activity in the determined faculty and/or departments.

 

As per the aforementioned Law, the applications to the Ministry of National Education and Culture for acquiring the "Preliminary Permit for Establishment" will be resolved within forty five (45) days and "Preliminary Permit for Establishment" will be granted to the relevant institution upon a favourable evaluation.

 

As stated, the institution needs to acquire the "Permit for the Operation" by applying to YÖDAK after acquiring "Preliminary Permit for Establishment". Such applications will be evaluated by YÖDAK and those institutions which satisfy the requirements put forward by YÖDAK will be granted "Permit for the Operation"

 

The aforementioned applications must be made through a legal entity whose residence is in the TRNC. The shareholders, directors and the employees of all ranks of the said legal entity are obligated to present the Ministry of National Education with a certified character and/or criminal record document in English or Turkish from the General Directorate of Police and/or other relevant authorities. The record document must show that, even though an amnesty was issued, inside or outside the TRNC, the shareholders, directors and the employees have not been sentenced to more than two years of imprisonment due to any crime related to wilful or attempted homicide, theft, fraud, counterfeiting, fraudulent bankruptcy, taking or bribery, sex offenses, or any crime under Law on Narcotic Substances.

 

In addition to these provisions, it is stated that the shareholders and/or board of directors and/or managers of real or legal entities, that run gambling or night club businesses cannot establish higher education institutions.

 

The minimum share capital of the legal entity established for education purposes shall be at least five thousand (5000) times of the minimum wage in force on the date of application to establish a company for higher education. In addition to this, all information and documents proving that the required land has been purchased, architectural projects completed, material status is available for covering all necessary physical infrastructure for the institution to be established should be presented to the Ministry of National Education and Culture.

 

As stated, legal entities which have been granted the "Preliminary Permit for Establishment" and "Permit for the Operation" must commence educational activity in the said building and/or facilities within two (2) years after the acquisition of the mentioned permit "Permit for the Operation". If the education does not commence within two (2) years, the relevant permits will be cancelled and a new application will be accepted only after minimum one year starting from the date of cancellation.

 

Another important matter is the provisions that restrict the transfer of shares in the relevant educational institution. In other words, all share transfers outside the current shareholders are subject to the approval of the TRNC Council of Ministers. In transfers outside the existing shareholders, the new shareholders must fulfil the requirements stated above. All share transfers without the approval of the TRNC Council of Ministers will be cancelled.

 

Gürkan and Gürkan Advocates and Legal Advisers offer the highest quality legal services for establishing a company for an educational purpose in the TRNC.  With many years of knowledge and experience our team of experts will be pleased to offer the best legal assistance for your investment in the educational sector in the TRNC.

Attr. Eren Özbalkan
  • Attr. Eren Özbalkan
  • Associate
  • January 2019