- Establishing Bussines
- Double-Tax Aggrement
If you are a foreigner and have plan like establishing a business in Turkey, Turkey has signed double-tax agreements with 80 countries of the world. With no doubt, the double-tax agreements will be an advantage for people who think about investing in Turkey. The double-tax agreements prevent investor from double taxing both their home country and Turkey. So, it’s so useful for investors and it will be cost effective.
An agreement was signed with 80 countries to avoid double taxation. This is one of the important factors in choosing Turkey of foreign companies. In Turkey, limited company and joint stock company, as of 2017, 20 % corporation tax payer. Turkey has signed 80 countries with the agreement on the prevention of double taxation, which aims to deduct a tax paid in any country from the tax to be paid in the other. In addition, a Social Security Agreement was signed with 26 countries. The Customs Union Agreement, which has been in force since 1996, allows trade with EU countries without any customs restrictions.
Company Types in Turkey
In the Turkish Commercial Code, five different trading companies are defined as Limited Company, Collective Company, Commandite Company, Joint Stock Company and Cooperative. These two companies can be established with a minimum of one partner and the partners are limited to the capital they are committed to putting responsibility. The limited liability company can be established with a minimum capital of 10,000 TL and the joint stock company with a capital of 50,000 TL. The initial capital of non-listed joint stock companies that have accepted the registered capital system should be at least 100,000 TL. There is no obstacle for all or some of the partners to be foreign nationals in both companies.
Opening a Contact Office in Turkey
foreign companies wishing to open a liaison office in Turkey must obtain permission from the Ministry of Economy. The first permit is given 3 years and can be extended after this period. As a final word, establishing a business or a contact office is so easy with new incentives and tax immunities.