How To Set Up a Company In Turkey?
Why set up a business in Turkey?
With new incentives, establishing a business in Turkey is more profitable and easier than ever. Recent goverment incentivesfor investors and new businesses;
- Stable bank and communication infrastructure
- Guarantee of existing investment rights
- Compliance with international standards
- Imports of certain machinery and equpiment are now exempt from customs duties, levies and VAT
- Certain exemptions from income tax and social insurance contributions
- Incentives avaliable in Turkey’s free trade zone, including exemptions from custom duties,
- It is possible for foreign investors and business owners to obtain Turkish citizenship since 2018
Can a foreigner start a company in Turkey?
Yes, Turkey provides many conveniences and opportunities for foreigners to open a company.
How to set up a company in Turkey?
Starting a business in Turkey may seem difficult. For this reason, we can always guide you and take the necessary actions for you. The guidance of a Turkish attorney will be beneficial for both you and your business. So, what is the set up process?
1. Obtaining a potential tax number from a tax authority
All official procedures will require a potential tax number. For starters, your first step should be to obtain a potential tax number from a tax office. At this stage, it will be beneficial for you to get professional help.
2. Determining a location for your company
Establishing a business in Turkey is only possible with your company's legal address. Whether it's a virtual or physical office, you must find and rent a location for your company. During the rental process, you will need a potential tax number and you must pay the rent from your company bank account, not your personal bank account.
3. Deciding on the type of your company
There are two main types of companies for foreign investors: corporate company (JSC) and limited liability company (LLC). For small business operations, a limited company would be the best option. The incorporation process of a limited liability company will be very fast, cheap and easy.
4. Finding a consultant for the company establishment process
A professional and reliable advisor in a foreign country is important to all investors. You will need a consultant who will be your business partner in the long term for the establishment of your business and the solution of all legal problems that may arise afterwards. Your consultant will start the business establishment process and will perform the preparation of the articles of association, the application for an appointment with the trade registry, the preparation of the tax office documents and the preparation of the power of attorney on behalf of your company. If you contact us, we will be happy to assist you in these matters.
5. Legal registration of your company
You must apply to the trade registry office, tax office and other relevant government offices for the registration of your company. After receiving the documents from the trade registry office, you must take your company's circular of signature to the notary public. In this process, a sworn translator should also be ready. We will be happy to assist you in finding an accountant to handle tax procedures and a certified translator to accompany you at the notary.
6. Opening a bank account
A bank account will be needed for your company to handle all financial processes. You can read our article titled "how to open a bank account" or call us directly to learn about the procedure for opening a bank account.
Can foreigners open a limited liability company in Turkey?
Yes, a limited liability company is the most popular form of start a small business in Turkey. The limited liability company can be set up by two or more non Turkish nationals. At least one shareholder is required to form this type of a company, with a minimum share capital of 10.000,00 TL.
How much does it cost to open a company in Turkey?
Opening a company in Turkey is not expensive. The business owner must consider the company registration fees, the notary fees and taxes.
**This study is prepared by Kula Law Office. Please contact by e-mail ([email protected]) or call at +90 232 435 06 04 for publication of the article in other channels, detailed information and questions about the subject.