Company Registration in Turkey
Company formation in Turkey depends on the type of company the founder wants to set up in Turkey and also on the activities that must be completed. The actions required for setting up a company in Turkey include the drafting of the articles of association, the specimen signatures, passport copies and some forms provided by the company registration office. It is important for founders to know that all procedures regarding company formation in Turkey must be carried on through a public notary and all documents necessary for company formation in Turkey must be translated in Turkish. Nevertheless, before setting up a company in Turkey, an office must be found and a bank account must be opened. After company formation in Turkey, another bank account must be set up, apart from the initial one where the share capital has been deposited. Setting up a company in Turkey also requires a local accountant.
TYPES OF COMPANIES
- Turkish Limited Liability Company – this is the most popular type of structure in Turkey and it is usually chosen for small and medium sized businesses. At least two shareholders must form a limited liability company in Turkey, provided that they have an initial capital of at least 2,400 EUR.
- Turkish Joint Stock Company – investors who are in search of larger companies usually choose this structure in Turkey. There must be at least five shareholders to set up company in Turkey and they must provide a minimum share capital of 24,000 EUR. The liability of the shareholders is limited by their contribution.
- Turkish Branch, Subsidiary or Representative Office – foreign companies may choose to set up branch entities in Turkey in the form of separate entities or extensions of the parent company in Turkey.
INCORPORATION PROCEDURE IN TURKEY
Company registration in Turkey cannot be performed unless the company has a registered office in Turkey, which must provide a legal address that can be made public to third parties. Company registration in Turkey can be completed by one of the founders or a legal representative appointed by power of attorney. It might be however necessary to make a personal visit for the opening of the bank account. Company registration in Turkey might also need a work place opening license.
Company registration in Turkey is followed by VAT registration. This is only mandatory for companies that are subject to VAT purposes. Company registration in Turkey for VAT begins when a notification is submitted at the local tax office, together with an application form filled by the founders, articles of association, company charter and details on the shareholders and management board members.
After company registration in Turkey is completed, the commercial activity can start. In most of the cases, setting up a company in Turkey also needs a number of employees. Since the unemployment rate in Turkey is rather high, employees are not hard to find. They can however be chosen through job websites or recruitment agencies. The average salary that a Turkish employee expects to earn monthly is around 3,000 EUR.
ECONOMY OVERVIEW IN TURKEY
Turkey has a dynamic economy, which attracts numerous foreign investors. Tourism provides an important income for the country’s economy. Other reasons for which entrepreneurs from abroad are attracted to Turkey are the location, the developed infrastructure and the well-trained workforce.
Turkey is considered to be among the most attractive destinations for foreign investments from the perspective of the domestic market and competitive workforce. Foreign investors are however continuously encouraged to come to Turkey through incentives and equal treatment as the local businesses.