Articles
Company Registration in Turkey
Updated on Thursday 23rd September 2021 Turkey is a country that offers great advantages for investors who want to open a company there. A gateway between Europe, the Middle East, and Central Asia, Turkey has a good economy, a liberalized investment climate, and a good taxation regime. We are a company registration agent in Turkey, serving clients from any part of the world looking to expand to the important Turkish market. Our team consists of Turkish company formation agents, consultants, and accountants) who will work together to will help you set up a company in Turkey.
Since 2011, our firm - CS Yonetim ve Destek Hizmetleri - has expanded its activity in order to better respond to clients' requests. Its areas of expertise include company registration, accounting, and tax advisory services oriented towards foreign clients looking to set up operations in Turkey.
| Quick Facts | |
|---|---|
| Types of companies | Limited Liability Company (LTD) Joint Stock Company (AS)
|
| Minimum share capital for LTD Company | 10.000 TL - No prepayment for capital, it can an be paid in 2 years. |
| Minimum number of shareholders for Limited Company | 1 |
| Time frame for the incorporation | 3-4 days for individual shareholders 7-8 days for legal entity shareholders |
| Corporate tax rate | 25% for 2021 and 23% for 2022 |
| Dividend tax rate | 15% |
| VAT Rate | 1% 8% 18% |
| Are shelf companies available? | No |
| Do you supply a registered address/virtual office? | Yes |
| Local director required | No |
| Annual meeting required | No |
| Redomiciliation permitted | Yes |
| Electronic signature | No |
| Is accounting/annual return required? | Yes |
| Foreign-ownership allowed | Yes, 100% |
| Any tax incentives (if applicable) | No |
| Any tax exemptions available? | No |
We provide company incorporation services in all of the major cities in Turkey, as you can see below. You can find more information about the company incorporation procedure in the major Turkish cities by placing the mouse over the map and clicking on the city you are interested in.
Reasons to invest in Turkey
Turkey has a dynamic economy that attracts numerous foreign investors. It also has a promising economic growth and the country is expected to have one of the fastest-growing economies among the OECD members. Moreover, Turkey encourages foreign direct investments and has a dynamic private sector.
Good infrastructure and a qualified and competitive workforce are two other key reasons why investors look towards Turkey to base their business. The country also has a favorable tax regime and the government offers incentives and tax benefits to those who open companies in certain free zones. Incentives are also applicable to research and development activities, strategic investments, or large-scale investments.
Types of companies in Turkey
The types of companies that can be used for company formation in Turkey are:
- • the joint-stock company, which is usually used by investors interested in setting up large operations in Turkey;
- • the limited liability company, which can be private or public, however, the private type is usually employed by foreign enterprises;
- • the commandite company is a non-corporate business form and is the equivalent of the limited partnership in other countries;
- • the collective company is also a non-corporate type of structure and can be registered by natural persons only;
- • the cooperative company is one of the oldest and also one of the most popular types of companies in Turkey.
The limited liability company is the most popular form of business. At least one shareholder is required to form this type of company and a minimum share capital of 10,000 TRY will also have to be deposited during the initial phase of the incorporation process. The liability of the shareholders is limited to the amount of share capital invested in the company.
The joint stock company has a larger minimum share capital than the limited liability one - 50,000 TRY. This type of company has different rules regarding the company management process: it must have at least one shareholder and a mandatory board of directors. The liability of the members is limited to the amount of invested capital and the capital is divided into stocks which can be made public when the company is listed on the Stock Market. This type of company is more suitable for large businesses.
Other business options for investors include branches or subsidiaries in Turkey. Our company formation agents in Turkey can give you detailed information about each type of company.
The following types of entities can be created in Turkey, regardless any minimum share capital requirements:
- the sole proprietorship, which is the simplest business form and, as such, requires no minimum share capital;
- the private limited liability company which is preferred by most foreign investors and requires a minimum share capital of 10,000 Turkish liras (TL);
- the joint stock company which is usually employed for completing large projects, therefore will require a higher share capital amounting to 50,000 TL;
- the commandite company which is similar to a partnership in European countries and which requires no minimum amount of money as a share capital;
- the collective company which must be set up by natural persons who are not required to deposit a specific share capital.
It should be noted that the share capital must be provided by the future owners of the company. These are called shareholders or stockholders.
We invite you to watch a video about how to open a company in Turkey:
Documents needed for company formation in Turkey
The documents required for registering a company in Turkey depend on whether the shareholder or shareholders are individuals or companies. In the case of individuals, two copies of their passports or IDs must be filed upon registration. In the case of legal entities, the following documents are required for company formation in Turkey:
- • the foreign company’s Articles of Association, which must be translated into Turkish and notarized;
- • the foreign company’s Certificate of Registration which must also be translated and notarized;
- • a resolution of the company’s management board for creating a company in Turkey;
- • information about the person in the foreign company who will represent it in the Turkish business’ administration;
- • information about the company’s manager or managers and their passport copies.
Company managers must also be appointed in companies that have individuals as shareholders. Our company registration advisors in Turkey can offer more information on all the documents which must be prepared when setting up a business in this country.
Company incorporation steps in Turkey
The following steps need to be completed when registering a company in Turkey:
- selecting a business form which respects the requirements of the Company Law in Turkey - our agents can help;
- reserve a trade name for the company to be incorporated - the name must be unique and can be verified prior to the reservation;
- prepare the documents which need to be filed with the Turkish Trade Register in order to obtain the Certificate of Registration;
- opening the company's bank account in which the share capital will be deposited prior to the registration;
- filing the incorporation documents, obtaining the tax identification number and the VAT number, and registering for employment.
The company incorporation procedure in Turkey
The company incorporation process in Turkey is straightforward and one of the shortest in Europe. The investor can begin running the new business in approximately one week if all the documents are in order.
The first step is drafting the articles of association signed by the company directors. These documents will also need to be notarized in Turkey. The minimum share capital can then be deposited in a bank account opened for the company. After the capital is deposited (0.04% of the required minimum capital) and the investors have the necessary receipt, they can begin the registration process. A registration fee is payable to the Commercial Registry Office, together with the necessary documents.
The Turkish Commercial Registry issues a registration certificate and the incorporation of the company is published in the Turkish Gazette. The company must also register for VAT purposes with the relevant State Tax Authority.
Tax registration for companies in Turkey
As mentioned above, tax registration is one of the company registration steps in Turkey. This step is very important because it will allow the company to account for all its commercial transactions. The following documents are required for tax registration as a company in Turkey:
- The company’s Articles of Association in original.
- The request form issued by the local tax office in Turkey.
- The document indicating the company’s local address.
- A power of attorney, if the process is concluded by a third party, such as our agents.
We can help with the whole company formation procedure in Turkey. This process can include the registration of the company with the Trade Register, the opening of the bank account and the tax registration procedure.
Applying for business licenses in Turkey
The business licensing phase must be completed if the Turkish company will undertake certain activities. In this case, specific business licenses and permits must be obtained with the authorities representing the industry the company will operate in. Among the industries in which special licenses and permits are necessary are trading, the financial industry, and manufacturing. These are also some of the most developed economic sectors in Turkey. We kindly invite you to get in touch with our company registration consultants in Turkey for personalized advice on how to start a business.
Company formation costs in Turkey
Apart from the startup costs, the following costs related to the registration of a Turkish company must be considered:
- The virtual office fee is 100 EUR per month;
- The company formation fee requested by our local agents in Turkey starts at approximately 2.950 EUR for individual shareholders;
- The accounting services and tax consultancy services offered by our accountants in Turkey start at around 350 EUR per month, depending on the requirements of the client;
- The bank account opening assistance services offered by our local agent is 750 EUR per account in each bank.
If you would like to know more about investing in Turkey and what the country has to offer, you can get in touch with our company formation agents in Turkey.
Rules and regulations for companies in Turkey
The Commercial Code introduces provisions regarding good management practices and requirements for an internal and independent audit. A company must base its economic and business activities on transparency, fairness, accountability, and responsibility. The Code contains guidelines regarding:
- the mandatory financial statements a Turkish company must prepare and file with the tax authorities;
- the organizational structure of the company which comprises the shareholders and the company directors and managers;
- the annual audit process – Turkish companies must have their financial accounts audited;
- the company’s shareholders, also known as stockholders, are the owners of the company;
- the structural changes within the company must be reported to the Trade Register in Turkey;
- the division/split-up of a company must also be reported to the Companies Register;
- the Company Law also provides for the liquidation of companies in Turkey.
These provisions, together with the Articles of Incorporation belonging to a company incorporated in Turkey are the basis for corporate governance in the country.
Obtain information about the Turkish companies
Any foreign entrepreneur who wants to obtain information about a company registered in Turkey may request it from the local Trade Register. This entity has a database containing various information about all the companies incorporated in Turkey. The access to this database is free for the public and the details about Turkish companies can be obtained by filing a request. The employees from the Turkish Trade Register are allowed to offer information about a company’s name, its official address, details about the shareholders, the share capital etc. The request can be sent by e-mail, mail or the person who wants to find out details about a company can go in person to the local Trade Register.
Other attributes of the Turkish Trade Register
At the local Trade Register, you can go in order to incorporate a company in Turkey, after you have prepared the requested documents. If you don’t have time or you don’t want to go in person to Turkey, you may give the power of attorney to one of our Turkish lawyers who will handle the entire registration procedure. After you send all the documents required to our law firm in Turkey, our representatives will go to the local Trade Register to submit them in order to obtain the registration of the new company.
Company formation in Istanbul
Istanbul is the largest seaport city in Turkey and home to a vast number of foreign companies that enjoy a proper business climate and relaxed company formation requirements. Our company formation agents in Istanbul can help international entrepreneurs start their activities in this city by taking care of all the formalities implicated in business registration. The limited liability company is the most popular business structure available, yet foreigners can decide on joint-stock companies, collective or commandite companies. A sole proprietorship is also a solution for entrepreneurs who want to do business on their own and be liable for losses in the firm. Small and medium entrepreneurs can enjoy the business climate in Istanbul, Turkey, and benefit from fast business incorporation, helped by one of our company formation specialists in Istanbul. If you are ready to start a business in Turkey, feel free to discuss all the aspects with our company formation agents in Istanbul.
Company formation in Izmir
Izmir is another solid and representative business center in Turkey, the third most populous in the country, with more than 3 million citizens. The industry of Izmir is quite representative, and the city hosts a large number of free zones and technological parks. Opening a company in Izmir is a straightforward process that can be entirely supervised by our specialists with experience in this field. Regardless of the selected business type in Turkey, we suggest foreigners get in touch with our team of company formation specialists in Izmir and find out more about the entire incorporation process of a firm. We can provide business advice to foreigners wanting to start a company in Izmir.
Company formation in Ankara
We have a dedicated team of specialists in Ankara, the capital of Turkey, the second-largest city in the country, with a population of more than 3,4 million citizens. Ankara is a representative financial and business center that accommodates a big number of thriving companies established with foreign capital. Having a free-market economy is a great advantage to foreigners wanting to start a limited liability company or any other type of business. We remind you that we have a dedicated team of company formation agents in Ankara who can provide comprehensive assistance to international entrepreneurs who want to start a company in Ankara, the capital of Turkey.
Business in Turkey for foreigners
Business in Turkey for foreigners is quite appealing from many points of view. With leading producers in sectors like agriculture, automotive, textile, and construction, Turkey aligns with top business destinations worldwide. Foreign entrepreneurs in Turkey can benefit from relaxed investment legislation that allows them to start a business in a fast manner, without complicated bureaucracies. Cities like Ankara, Istanbul, or Izmir are quite appreciated from a business point of view by foreigners in Turkey. Low operating costs, a skilled and multilingual workforce, strong consumer spendings, a large number of local manufacturers to collaborate with, the support offered by the Turkish government, and a beneficial geographic location, here are a few of the main solid points of Turkey when it comes to business for foreigners. The benefits do not stop here, as foreigners can easily gain Turkish citizenship through varied beneficial programs and specific investments. Business in Turkey for foreigners is a straightforward process. You might want to pay attention to some facts and figures that highlight the business and economic direction of Turkey:
- • In terms of total FDI stock for 2019, Turkey registered nearly USD 165 billion.
- • Around 60% of the total FDI stock is directed to sectors like manufacturing, finance, and energy.
- • The Netherlands is the main investor in Turkey, accounting for more than 16% of the total FDI in Turkey for 2019.
- • Being ranked 33rd out of 190 economies in the world by the 2020 Doing Business report, in matters of ease of doing business, encourages foreign entrepreneurs to start a business in Turkey.
Frequently Asked Questions
1. What are the types of companies that can be incorporated in Turkey?
The joint-stock company, the limited liability company, the collective and commandite companies, the cooperative or the branch are all options for a legal entity in Turkey.
2. Can a foreigner open a company in Turkey?
Yes. Foreigners have equal rights to open companies, just as nationals. Turkey welcomes foreign investments in various business fields.
3. How fast can you start a new business in Turkey?
A business can be incorporated in one week if all the documents are in order.
4. Does the company need to have an office in Turkey?
Yes. A registered office is necessary for a newly incorporated company in Turkey. This also applies for branches of foreign companies.
5. What are the steps for company incorporation in Turkey?
The business owner must draw up and submit the Articles of Association, notarize the company documents, deposit the minimum share capital and apply for registration at the Trade Registry Office.
6. What is the minimum share capital in Turkey?
The minimum share capital depends on the type of company. This amount is larger for joint stock companies than for limited liability companies: 50,000 TRY as opposed to 10,000 TRY.
7. What are the requirements for opening a bank account in Turkey?
The bank account is mandatory for the company because the share capital is deposited upon incorporation. Banks will generally request the registration certificate of the company and other documents attesting the identity of the founding members. Certain fees apply, as per the bank’s policy.
8. Do you need special permits and licenses in Turkey?
Yes. For example, import and export activities are regulated and business owners engaging in this activity based on certain permits obtained before starting the actual trading.
9. What are the taxes for companies in Turkey?
The corporate tax in Turkey is 20% but lower rates can apply. A payroll tax, real property tax, social security tax and other taxes also apply.
10. What are the reasons to invest in Turkey?
A good location between two important markets, its own large domestic market, good economy, an open investment climate and god infrastructure are good reasons why investors should choose to open a company in Turkey.
Foreigners interested in starting a business in Turkey are invited to contact our Turkish company formation agents and solicit complete support and guidance.
Choosing our specialists in Turkey
Interested in a fast and easy company incorporation process in Turkey? You are invited to discuss all the aspects with our team of company formation agents in Turkey who work in complete professionalism and proficiency, to adopt and offer a suitable solution for international investors. It is essential to know the business direction and rules of a foreign country before making investments and this is also the case of Turkey. All the business-related aspects can be completely explained by our specialists right from the beginning of our collaboration.
Companyformationturkey.com is part of an international network which has affiliated partners throughout the world, such as Polish lawyers, attorneys in Turkey, agents in company formation in Romania and in Luxembourg and solicitors in Bucharest.
Meet us in Istanbul
Call us now at +90 532 351 66 77 to set up an appointment with Cagatay Altunsoy, one of our specialists in company formation in Istanbul, Turkey. Alternatively you can incorporate your company without traveling to Turkey.
As a client of CS Yonetim, you will benefit from:
- - 24 hour response time guaranteed;
- - cost- efficiency;
- - dozens of articles and free information on the Turkish structures.