Turkey offers many incentives to foreign investors starting companies here. Apart from tax rebates, the government has set in place an easy company registration procedure for those moving and thinking about opening a company in Turkey. Apart from these, one can choose between several types of business entities which are suitable for small and medium-sized enterprises in Turkey. For a small business, a sole trader or sole proprietorship is the most appropriate form of doing business in Turkey. The sole trader can change its status to a limited liability company if the owner decides to expand his or her activities.
Our Turkish company formation representatives can offer information on the sole proprietorship as a business form.
Foreign investors must first obtain a long-term visa or a permanent residence permit in order to start any type of business, including a Turkish sole proprietorship. Even if no share capital is required, a sole trader should first draft a solid plan which will enable him or her to determine the right amount to start operating. The sole trader must also open a bank account in Turkey.
Considering the sole trader will carry out economic activities in his or her own name, one must carefully choose the name of the company. The trade name will be registered with the Trade Registry in Turkey.
The establishment of a Turkish sole trader consists in filing an application form with the Trade Register and registering with the local tax authorities 30 days before starting operating. It must also register for social security purposes. This is the greatest advantage of setting up a sole proprietorship in Turkey. A sole trader does need a manager or a local representative to keep in contact with the local authorities, however it is allowed to hire personnel.
With respect to taxation, sole proprietorships in Turkey must file an annual tax declaration. They will also be subject to the individual income tax in Turkey.
For full information on how to register a sole proprietorship in Turkey, you can contact us. You can also rely on our company registration agents in Turkey if you want to set up other types of companies.