Company Formation in Turkey
Company Formation in Turkey: A Complete Guide for Investors
Turkey is emerging as a favorable destination for entrepreneurs and international businesses, offering a strategic location between Europe and Asia, a dynamic economy, and a supportive legal framework. Whether you’re a local entrepreneur or an international investor, forming a company in Turkey has never been more attractive. This guide will walk you through the steps of company formation in Turkey, focusing on the key aspects that make the process straightforward and efficient.
Table of Contents
Why Form a Company in Turkey?
entrepreneurs and companies in set up company in Istanbul and ensuring that they complete the establishment process quickly, at affordable prices, and in accordance with the Turkish Commercial Code,
Our services for establishing a company in Turkey include; liaison office establishment in Turkey, branch establishment in Turkey, free zone company establishment in Turkey, joint stock company formation in Turkey, limited liability company establishment in Turkey, holding company establishment in Turkey, company management and administration.
Types of Company in Turkey
When forming a company in Turkey, you can choose from different types of business entities based on your goals and the structure of your operations:
Step-by-Step Guide to Company Formation in Turkey
1. Choose the Type of Company
The first step is to decide on the type of company that fits your business needs. Most foreign investors choose to form an LLC because it offers flexibility and limited liability.
2. Company Name and Registration
3. Register with the Trade Registry Office
You need to register your company with the Trade Registry Office in the jurisdiction where your business will be located. The required documents include:
Once the documents are submitted, the Trade Registry Office will issue a certificate of registration, which typically takes around 2-3 business days.
4. Obtain a Tax Number
After registration, the company must obtain a tax identification number from the local tax office. You will also need to register for VAT (Value Added Tax) and Social Security if you plan to hire employees.
5. Open a Corporate Bank Account
A corporate bank account in Turkey is mandatory for all businesses. This account will be used to deposit the company’s share capital, pay taxes, and manage daily financial transactions. Many banks in Turkey offer tailored services for foreign investors.
6. Register for Social Security
If your company plans to hire employees, you must register with the Turkish Social Security Institution (SGK). This process ensures that your employees are covered by social security benefits.
7. Apply for Relevant Licenses and Permits
Depending on your business activities, you may need to obtain additional licenses or permits. For example, companies in the financial services, healthcare, or food industries must comply with industry-specific regulations.
Key Considerations for Foreign Investors
1. Shareholders and Directors: In Turkey, a company can have 100% foreign ownership. At least one shareholder and one director are required for an LLC. These can be foreign nationals, and there is no requirement for them to reside in Turkey.
2. Minimum Share Capital: The minimum share capital requirement for an LLC is 50,000 TRY, while a JSC requires 250,000 TRY.
3. No Residency Requirement: Directors and shareholders do not need to reside in Turkey. However, appointing a local representative may be helpful for handling legal and administrative matters.
4. Taxation: The corporate income tax rate in Turkey is 25%, but this may vary depending on government incentives or exemptions for certain industries or regions. Additionally, VAT rates range from 1% to 20%, depending on the nature of goods or services.
Costs of Company Formation in Turkey
The cost of forming a company in Turkey depends on the type of company and the complexity of the business. Some of the typical costs include:
After Company Formation: What’s Next?
FAQs About Company Formation in Turkey
What are the main types of companies in Turkey?
The main company types in Turkey are:
What is the minimum capital requirement to start a company in Turkey?
How long does it take to establish a company in Turkey?
The company registration process usually takes ?1 to 3 days, provided all documents are in order.
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Can a foreigner own 100% of a company in Turkey?
Yes, Turkey allows foreigners to own 100% of the shares in both limited liability and joint stock companies.
What documents are required for company formation in Turkey?
Required documents generally include:
What are the costs associated with forming a company in Turkey?
Costs include:
Do I need a Turkish partner to start a business in Turkey?
No, a foreigner can establish and fully own a company without the need for a Turkish partner.
Is it mandatory to have a physical office in Turkey?
Yes, Turkish law requires a company to have a registered address. Virtual offices are acceptable as long as they comply with legal requirements.
Do I need to open a bank account for my Turkish company?
Yes, a local bank account is necessary for depositing the company’s share capital and for operating business transactions.
How can I obtain a tax identification number in Turkey?
A tax identification number can be obtained by visiting a local tax office with identification documents, such as a passport for foreigners.
What taxes will my company be subject to in Turkey?
Is a Turkish Accountant required to operate a company in Turkey?
Yes, every company in Turkey is required to have a Turkish certified public accountant (CPA) to handle bookkeeping, financial reporting, and tax submissions.?
Can I transfer profits from my Turkish company to another country?
Yes, Turkey allows the repatriation of profits, provided all taxes and financial obligations are met.
Can foreigners establish a branch or liaison office in Turkey?
Yes, foreign companies can establish branch or liaison offices in Turkey, but they must register with the Turkish Trade Registry and meet other local requirements.
Do I need a work permit to manage my company in Turkey?
You can run your company remotely but foreign directors or managers of a Turkish company will need to obtain a work permit to legally work and reside in Turkey.
Can I start a company remotely from outside Turkey?
Yes, with the help of a power of attorney, company formation can be done remotely. However, physical presence may be required at certain steps, such as opening a bank account.
How do I close a company in Turkey?
Closing a company involves multiple steps, including liquidating assets, settling debts, and unregistering the company from tax and trade registries. The process typically takes min. 3 months.
What is the role of the Turkish Trade Registry?
The Turkish Trade Registry handles the registration, amendment, and publication of company-related matters. Every company must be registered here to gain legal status.
Can a company in Turkey have non-Turkish employees?
Yes, companies in Turkey can hire foreign employees, but they must obtain work permits through the Ministry of Labor and Social Security.
Are there incentives for foreign investors in Turkey?
Yes, Turkey offers incentives such as tax exemptions, customs duty exemptions, and land allocation in certain investment zones, especially in sectors like technology, manufacturing, and renewable energy.
Click the link of tax incentives in Turkey for more detail.
Contact Us For Company Formation in Turkey
Company formation in Turkey is a streamlined process with many advantages for both local and foreign entrepreneurs. Whether you are looking to expand your existing business or start a new venture, Turkey offers a pro-business environment with attractive incentives.
By following the legal steps and ensuring compliance with regulations, you can set up a company in Turkey and benefit from its growing economy and strategic location.
A&M Consulting Co. is a Turkish Accounting and Tax Consultancy company specialized in providing end-to-end company formation services for especially global investor and foreign entrepreneurs which wants to walk into to Turkey’s market
We continue to offer cost-effective solutions to global and individual entrepreneurs who want to enter the Turkish market smoothly and quickly, to ensure their full compliance with local legislation and to facilitate their access to tax exemptions and incentives.
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You can reach out to our experienced consultans via email or by filling out the?Contact Form?on our website’s?contact page.
A&M Consulting Co.
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3 周Very informative
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