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How to Establish a Company in Turkey?

How to Establish a Company in Turkey?

According to Turkish legislation, a company may only be lawfully created in Turkey (Turkiye) if it has a Turkish headquarters. There are two ways to acquire a headquarters: virtual or real.

It is possible to locate a site that is already held by the firm as the first choice In addition, renting a home is a viable choice. Renting a home will set you back anywhere from $100 to $150 per month, plus any other fees or commissions you may incur. Second, you can get a “virtual location” (Virtual Office in Turkey), which is a government-provided address, but not a real place, for your company.

The company’s capital is the most important consideration; under Turkish legislation, a 1000 USD minimum capital is required to form a corporation, which is insufficient to secure you. There is no sovereignty since Turkish law interacts with the company depending on its cap value. A work/residence visa is possible for those whose company’s capital is $100,000 or more. Join companies like TURSAB, Musiad, and others. Exporting and importing goods simply and efficiently.

What Kind of Companies Can Be Established in Turkey? 

Companies that are legally permitted by the Turkish State can be established. According to the Turkish Commercial Code, there are five different categories of businesses in Turkey. 

Joint-stock businesses are formed for the aim of making money and are not forbidden by law. This type of business has a fixed capital and is divided into shares that are only liable for debts incurred through its property holdings. Shareholders are only responsible to the corporation for the capital shares that they have pledged. A joint-stock corporation can be formed with a single share and stockholders who are both genuine and legal. At the company’s headquarters, articles of association have been created and registered with the trade registry. In most cases, the general assembly’s consent is not required for the transfer of shares, and shareholders are free to transfer their shares to others. This is the only form of a firm whose stock is available to the general public and exchanged on a stock exchange. The minimum capital amount is 3,630 USD, and the capital system for the JSC accepting the registration must be at least 7,261 USD. Before registration, at least one-quarter of the nominal share must be paid in cash, and the remaining amount must be paid within 24 months of registration. The payment schedule can be established by the board of directors or by the articles of incorporation.

A limited corporation has a fixed capital and is divided into shares, and it is only liable for responsibilities related to its tangible assets. A limited corporation can have only one shareholder.  However, the overall number of investors should not exceed fifty. These companies’ partners must be legal or real people. A limited corporation must have a written contract that is registered with the local trade registry. A limited company’s stockholders are not accountable for its obligations and are only required to pay the capital shares they have committed. They are liable for capital obligations at the rate of their capital shares due to uncollectable public debt.

Collective companies are those that are formed by two partners who must be real people. Both partners have the right and obligation to manage the business independently, and the management business can be delegated to one or more other partners, either by corporate agreement or by a majority of the partners. These partners have second-degree unrestricted liability to the company’s creditors. In addition, a collective corporation does not require any money.

Ordinary limited partnership (private firm) and limited partnership divided into shares are the two forms of limited partnership companies (capital company). It can be founded by at least two people, one of whom is the active partner (with unlimited liability) and the other is the static partner (with limited liability) (limited liable). The active partners must be living individuals, but the dormant partners might be either living individuals or legal entities. An inactive partner’s obligation is limited to the capital they invest, and they are unable to control the company. An active partner’s responsibilities are similar to those of a collective company partner, and they can run the company.

A cooperative company is a commerce firm that can be formed by at least seven partners. It is not a private or capital corporation. Each partner receives at least one and up to 5,000 shares. The total value of the partnership shares is 100 Turkish Liras (7$). The cooperative general assembly is open to all partners save those who were not partners three months before the general assembly. Building cooperatives does not necessitate this procedure. This company’s board of directors must be made up of four Turkish citizens who meet other legal conditions.

What are the Conditions for Establishing a Company in Turkey?

Before forming a company in Turkey (Turkiye) and beginning commercial operations, there are various legal requirements. These include deciding on the type of business they wish to start and obtaining notarization and a notarization certificate by the Companies Law. The conditions for establishing a Company in Turkey are as follows: 

  • Establishing a corporate bank account and depositing the requisite capital;
  • Appointing firm leaders by the law;
  • Submitting the establishment’s documentation, as well as the shareholders’ and managers’ information to the Trade Registry Office;
  • Obtaining tax and VAT numbers, as well as registering with the tax office for purposes of social security.

Who Can Establish a Company in Turkey?

The shareholders are the company’s founders, or more precisely, its owners. Individuals and corporations alike have a variety of rights and responsibilities in a firm. In both private and public Turkish corporations, the minimum number of shareholders is one. When starting a business in Turkey, the sole shareholders might be Turkish citizens or residents, but they can also be foreigners.

Both male and female genders can establish a business in Turkey but there’s a limit for age. Age between 25 – 55 can establish a company in Turkey, as per the Turkish Laws assigned by the government.

It is vital to pay attention to the age condition orderorder to profit from tax deductions. 
If you’re under the age of 29, you can start business as sole proprietor and save money on taxes. 
sole proprietorship is an option for those who desire to run business on their own.

Can Foreigners Establish a Company in Turkey? 

Yes, foreigners can establish a company in Turkey. For international investors, Turkey’s regulatory and legal framework is quite welcoming. There is no restriction on the type of company that foreign investors can set up in Turkey, regardless of their nationality or location of residency. Unless otherwise stipulated in international agreements or particular laws, foreign investors are subject to the same local regulations as domestic investors. A local shareholder does not have to create a limited liability corporation (LLC) with one or more foreign actual persons or legal entities.

The Turkish government allows foreign investors to own 100% of a corporation in the country. Turkish citizens are not obligated to participate in equity participation. When opening a bank account in Turkey in the name of a new company, there are no limits on sending money from outside Turkey. Net profits, dividends, proceeds from the sale or liquidation of all or any part of an investment, compensation payments, amounts arising from the license, management, and similar agreements, and reimbursements and interest payments arising from foreign loans can all be freely transferred abroad by foreign investors, banks, and special financial institutions, without restriction. 

Where to Apply to Establish a Company in Turkey?

If you’ve settled on a business structure, you’ll need to complete two registration steps during the start-up phase: register with the appropriate Chamber of Commerce and open a taxpayer account with the applicable Tax Office.

First and foremost, you must determine your address, which will be used as the company headquarters. After you’ve signed the lease, you should work with your advisor to draft the company’s articles of incorporation. There are a few things to think about at this point: Identifying the company’s title and NACE code, for example. You should look through the primary contract with your financial advisor when you’ve finished preparing it. The Mersis system will be used to prepare the primary contract. At this point, the system will also receive the possible tax number.

Then there’s the notary business to attend to. You must sign the articles of association to be printed at the notary public on your first visit and give the financial advisor power to form a company.

You must register a bank account in the company’s name and put 14 percent of the capital into it, together with the notarized primary contract and the possible tax number obtained from the system. The bank has placed a hold on this money until your business is created. The blockage will be lifted after your firm is established, and you will be able to use your funds. There is no need to open a bank account and deposit money into it if the firm you are forming is a limited liability corporation.

Your consultant can now apply to the relevant chamber of commerce for company registration with the file comprising all of the required paperwork (petition, declaration of incorporation, articles of association, bank blocking letter, competition fund payment, etc.). The Chamber of Commerce will complete the registration procedure within a day or two if there are no missing documents in your documents.

You will need to visit a notary public a second time after your firm has been registered with the Chamber of Commerce. This time, you’ll sign to prepare the existing company’s signature circular. You will provide your financial advisor a power of attorney from the Notary Public as a corporate official. In addition, the administrators must have their identity or identity cards notarized and send the notarized copies to their financial advisors for the tax office application.

Your financial advisor will obtain the company’s approved official books from the Trade Registry, file a petition for tax office registration, and issue your business’s tax plate at the end of the day. The tax office will send a polling officer to the address where your business is located, and the polling officer will ask you to be present at the polling and sign the polling report. If the polling officer is unable to locate you at your residence, you must request a re-call.

What are the Documents Required to Establish a Company in Turkey?

We can assist you if you require business documentation; our knowledge and relationships with the Companies Registries enable us to get company records, reports, and conduct complete company searches.

Company Documents provided include the following:

  • Official Company Extracts Certificates of Good Standing Certificates of Incorporation
  • Director’s Report & Financial Statements
  • Descriptions of Directors
  • Memorandum and Articles of Association

Certified Company Documents can be issued for official purposes and can be Apostilled / Legalized.

How Much Money Do You Need to Establish a Company in Turkey?

When beginning a business in another country, the first item to consider is the expense of getting started. There are a variety of costs associated with establishing a company in Turkey.

For a Joint Stock Company, the minimum investment is 36,022.80 dollars. At least USD 7,204 is required for non-public Joint-stock firms that adopt the registered capital system.

The limited company’s capital must be at least $1200. Within 24 months of the company’s incorporation, the whole capital contribution might be paid out in cash. Depending on the terms of the corporate contract, the payment schedule may be established by the board of directors.

Collective enterprises don’t need any funding.

For Limited Partnership only one, at most, five thousand shares are required from each of the partners. There is a 10 USD partnership share.

What Jobs Can Be Done in Turkey?

While technology is one of the most active industries in the world today, here are some of Turkey’s most lucrative jobs.

In the textile and garment industry, Turkey, which goes back to the Ottoman Empire, continues to play a significant role. 2020 saw textile exports take fourth place internationally, accounting for 3.3% of global exports. Since 2000, exports of textiles and clothing have increased by more than 50%. Most of Turkey’s textile and garment exports are sent to Europe, with Germany, the United Kingdom, and Spain making up the top five countries of destination. Over $9 billion worth of goods were shipped from these three nations in 2019.

Economic growth, an increase in convention tourism, and an improvement in civil aviation are all signs that the country is improving. It predicts that the demand for luxury car rentals will increase rapidly in the future. In the next five years, the Turkish automobile rental market is expected to more than quadruple in volume as a result of increased capital, employment, and technological developments.

Many investors consider Turkish real estate to be a secure bet. Currently, the world’s attention is focused on Turkey’s booming housing market. The Turkish property market is dominated by domestic transactions but is significantly weighted toward interests in foreign real estate. As a result, a growing number of foreigners are interested in purchasing properties in Turkey.

There are a lot of property investors in Turkey, which is a large country. Turkey’s investments continue to pay off for foreign investors. There are a lot of investors from Ankara to Mersin. Learn how to analyze your real estate investment funds by reading this essay. There is a lot of activity in the Turkish housing market.

Information and Communications Technology (ICT) sector exports to Europe, the Middle East and North Africa (MENA), Asia, and North America (NA) have surpassed $1 billion, making Turkey a major exporter of ICT products. Software, hardware, equipment, and services in the information and communication technology (ICT) sector account for about 80% of Turkey’s exports to the European Union

During the early 2000s, international investment boosted employment in the industry to 143,000. Currently, about 20% of ICT workers are involved in R&D, and over 70% of those workers are under 35 years old. Turkey’s workforce has been bolstered by an increase in university graduates in engineering and computer science. A record number of nearly 59,000 persons earned degrees in related fields in the year 2019 for the first time. Due to the country’s educated workforce and low labor expenses, Turkey is a regional powerhouse.

What are the Advantages of Starting a Business in Turkey?

Foreign investors who want to start a business in Turkey might take advantage of several advantages. Turkey is an intriguing market due to its strategic location as Europe’s and the Middle East’s trading center. Furthermore, the country offers a once-in-a-lifetime chance for foreign investors, with high investment potential and continued backing from the Turkish government.

The advantages of starting a business in Turkey are as follows: 

  • Low Operating Costs: The cheap operational costs are one of the advantages of establishing a business in Turkey. While starting a business in another country, such as the United Kingdom or the United States, may cost you a fortune, Turkey offers a tremendous opportunity. In Turkey, approximately a million students graduate from university each year, and many of them begin looking for work rather than beginning their businesses. As a result, the cost of entry-level pay and labor is comparatively low. The cost of the suppliers is very reasonable, despite the high quality of the items and service. This is a huge advantage because you won’t have to worry about your business’s initial costs.
  • Strong Consumer Spendings: Another advantage of Turkey’s young population is the amount of money they spend. Young people enjoy following trends, and they have favorite brands that they will spend money on without hesitation. You may start a successful business in Turkey by tailoring your business plan and marketing strategy to the needs of young people. You can simply attract young clients in Turkey by following the current trends and using them in your business.
  • Local Manufacturers: It makes sense to locate manufacturers near where you start your firm in the real world. Many local manufacturers in Turkey are prepared to assist and support investors. They will gladly assist you if you have a concept and want to run it by a local manufacturer. In comparison to larger providers, local producers are also more willing to accept minimal orders. This is a huge advantage for an investor looking to start a business in Turkey.
  • Incentives Granted from the Turkish Government: By lowering investment-related expenses and providing a more investor-friendly climate, the Turkish government is encouraging both domestic and foreign investors. Investors’ expenses were lowered thanks to the new investment incentive system. VAT and custom duty exemptions, tax deductions, social security premium assistance, interest rate support, land allocation, VAT refund, and income tax withholding support are all available to foreign investors who receive an Investment Incentive Certificate (IIC).
  • Turkish Citizenship: Finally, international investors can gain Turkish citizenship and its associated perks by founding a firm in Turkey in 2017. Foreign nationals who earn more than a particular amount and create jobs or keep their deposits have been granted Turkish citizenship. You can obtain Turkish citizenship if you make a capital investment of at least $500 thousand, or if you employ at least 50 people, or if you buy an immovable property worth $250 thousand, or if you keep a deposit of at least $500 thousand in Turkish banks for at least three years, or if you buy government debt securities worth at least $500 thousand and keep them for at least three years.

Where to Buy an Office in Turkey? 

The central city districts, the districts of the Bosporus European and Asian coastline have the most valuable properties, luxury residences, and homes. There are a variety of new projects mostly built in high-rise tower complexes with shopping malls, restaurants, many other facilities all under one roof which takes the attention of the investors in Turkey.

Realty Group Projects are as follows:

Office

City

Size

Price

Luxury Office

Istanbul

1-4 Bedroom

USD 700,348

Deluxe Offices

Maltepe

1-3 Bedrooms

USD 842,000

Office in Compounds

Antalya

1-5 Bedrooms     

USD 578,000

Luxury Office

Izmir

1-3 Bedrooms

USD 60,000

 

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