A bill submitted to Parliament would give the Registrar of Companies powers to reject company registrations and remove existing companies from the register when issues of national security or state sovereignty arise.
The proposed legislation follows concerns raised in Parliament earlier in 2026 over companies linked to Turkish and other foreign interests whose activities could potentially conflict with critical interests of the Republic of Cyprus.
The bill was approved by the Council of Ministers on 6 August and submitted to Parliament on 17 September. It will now be examined by the House Commerce Committee.
Existing companies could be removed from register
According to the explanatory report accompanying the amendment bill, its purpose is to provide a legislative framework for protecting the national interest, national security, public order and public interest, as well as safeguarding the Republic against external or internal risks affecting state sovereignty.
In practice, the national security company law would expand the powers of the Registrar of Companies, allowing the office to reject certain company applications or remove companies already on the register on the basis of information received from a competent authority.
Under the bill, the Registrar would be able to inform a company that a decision had been taken on the basis of information that cannot be disclosed.
“The regulation is considered necessary and essential due to the particular circumstances prevailing in the Republic of Cyprus, due to the continuing occupation of part of the territory of the Republic and the resulting consequences,” the explanatory report states.
Turkish-linked companies raised in Parliament
The House Audit Committee examined the presence of companies linked to Turkish interests in the Cypriot economy earlier this year, following a proposal by former EDEK MP Marinos Sizopoulos.
During those discussions, Parliament called on the executive to immediately submit the relevant legislation, highlighting concerns surrounding the activities of companies linked to Turkish interests in the Republic of Cyprus.
MPs raised concerns about the possibility of such corporate structures being used for espionage, as well as the acquisition of property through companies and their subsequent penetration into the economy.
Concerns were also expressed that, because of what was described as a gap in legislation governing land purchases by foreign companies, property in the government-controlled areas could gradually come under Turkish-linked ownership.
At least 30 Turkish-linked companies registered
According to figures presented to Parliament in early 2026 by Registrar of Companies Irini Mylona-Chrysostomou, 30 companies linked to Turkish interests had been registered.
However, she said the actual number could be higher, as Turkish nationals may be behind more complex corporate structures.
Mylona-Chrysostomou told the House Audit Committee that attempts by individuals linked to Turkish and other foreign interests to register companies in the Republic of Cyprus were continuing.
Registrar faced legal challenges over applications
The Registrar also said there had been cases in which her office refused to register companies linked to Turkish interests, resulting in objections and court proceedings.
According to her testimony, some of those proceedings involved Greek Cypriot lawyers representing Turkish applicants.
She said the issue was complicated by the fact that existing legislation does not prohibit the registration of such companies.
Also read: Education support workers call new 24-hour strike
For more videos and updates, check out our YouTube channel
