How To Establish A Company In Turkey By Foreigners?
Foreign entrepreneurs who want to invest in Turkey, should be familiar with the basic attributes of the entity type primarily on July 1 2012. changing with the new Turkish Commercial Code entered into force. The new Commercial Code defines legal entities in the following ways:
- Limited Liability Company
- Joint Stock Company
- Limited Partnership
- Collective Company
- Cooperative Company
Once the type of business that suits the activities is selected from the above, registration and establishment will not take long. Foreign investors should also benefit from a certain amount of capital before commencing commercial activities of the company; for example, while the limited liability company requires a capital of at least 10,000 TL, the joint stock company must have at least 50,000 TL in its bank account.
How to establish a new business in Turkey ?
There are some legal steps before establishing a business and starting commercial activities. These are ;
- Choosing the type of company they want to establish and to have the notarization and notarization certificate according to the Companies Law;
- Opening a corporate bank account and depositing the capital required by law;
- Appointing company executives according to the legislation;
- Submitting the documents of the establishment, the information of the shareholders and the managers to the Trade Registry Office;
- Obtaining tax and VAT numbers as well as to register with the tax office for social security reasons.
Required Documents for Establishing a Business in Turkey
One of the most important steps of establishing a business in Turkey is preparing the required documents to register company to Trade Registry Office. The main document to be prepared and notarized is the “Company Agreement”, which contains all the details of the shareholders. In this agreement, the names of the partners, their places of residence, their contributions to the share capital of the company and the number of shares should be specified. In addition, the company executives; information on their names, the positions they have been appointed and the types of repeal and their duties and obligations.
In the same document, the company’s trade name, address and description of the purpose of the activity should be clearly stated in Turkey. Other provisions regarding the amendments that may be brought to the company and any dispute resolution methods in case of any problems between the shareholders may also be included in the Company Agreement. It is very important that the contract is prepared in accordance with the provisions of the Turkish Commercial Code. If you want to set up a foreign company and an investor in Turkey, law offices in Turkey and can assist you in the preparation of these documents complete correctly.
An important consideration is the competence of completing a simple application form to the Trade Registry in case a company is established. Turkey is in question, known as limited liability companies, partnerships, organizations are located on the basis of partnership agreements.
What are the field of interest of Foreign Investors ?
The main areas of interest for foreign investors who want to establish a company in Turkey is represented by each of the three largest private investment:
- Free zones
- Organized industrial zones
- Technology development zones
Other incentives offered to foreign investors are given by double tax agreements and Free Trade Agreements. These agreements include Albania, Bosnia and Herzegovina, Chile, Croatia, Egypt, Georgia, Iceland, Israel, Jordan, Lebanon, Liechtenstein, Mauritius, Macedonia, Montenegro, Morocco, Norway, Palestine, Serbia, South Korea, Switzerland, Syria, Tunisia it allows trade between countries without being subject to customs duties.
Other Questions about Establishing a Company in Turkey
- Do I need a local address for new establishing company in Turkey?
- Yes, your company should have a registered address.
- How long does opening company bank account takes ?
- It may take 3 weeks.
- Do I need to come to Turkey to establish a business?
- No, you don’t need it. The authorized consultancy firms can solve this problem.
- Does the company need a local manager ?
- No, your company don’t need a local manager.
- What is the rate of corporation tax in Turkey ?
- The corporation tax rate is 20% in Turkey.
- How much is the cost of establishing a company in Turkey ?
– Establishing a company in Turkey is not high cost, but the owner of the company, should take into account the the required tuition fees of company and notary fees (if assigned) of the Turkish consultancy firm conducting the process service charges.
- How long does establishing a company takes in Turkey ?
- It takes only 3 days.