Company Registration in Turkey 2025
Company Registration in Turkey 2025
Key Points for Company Registration in Turkey
Types of Companies: Foreigners can register various types of companies in Turkey, the most common being:
Limited Liability Company (LLC): Suitable for small to medium-sized businesses, with a minimum capital of 50,000 TRY. It is a popular option due to its lower capital requirement and limited liability.
Joint Stock Company (JSC): Ideal for larger enterprises, with a minimum capital of 250,000 TRY. It is preferred by banks and insurance companies and allows for easier share transfers.
Branch Office: Allows foreign companies to operate in Turkey without creating a new legal entity.
Liaison Office: For research activities only and cannot engage in commercial activities.
Sole Proprietorship: Suitable for small businesses with low initial income. No minimum capital required.
Other types include commandite companies, collective companies, and cooperatives.
Benefits of Investing in Turkey:
Strategic Location: Turkey is a bridge between Europe and Asia, providing access to multiple markets.
Growing Economy: Turkey has a dynamic and rapidly growing economy.
Investment Incentives: The Turkish government offers tax breaks, subsidies, and grants.
Skilled Workforce: Turkey has a young and educated workforce.
Ease of Doing Business: The company registration process has been simplified.
Company Setup Process:
Choosing a Business Structure: Decide between an LLC, JSC, or other suitable structure.
Preparing Documents: Gather necessary documents such as passports, articles of association, and proof of address.
Submitting Application: Submit the application to the Trade Registry Office through the MERSIS system.
Tax Identification Number (TIN): Obtain a TIN from the local tax office.
Bank Account: Open a corporate bank account and deposit the required capital.
Tax and Social Security Registration: Register with tax authorities and the Social Security Institution (SGK).
Capital Requirements:
JSC: Minimum capital is 250,000 TL, with 1/4 paid before establishment.
LLC: Minimum capital is 50,000 TL, payable within 24 months.
Location Options:
Mainland: Suitable for businesses targeting the local market.
Free Zones: Ideal for export-oriented companies, with tax advantages.
Technoparks: Support R&D and innovation-focused projects, with tax incentives.
Required Documents:
For Individual Shareholders: Passport, residence address, contact information, tax ID, and biometric data.
For Corporate Shareholders: Notarized board decision, representatives' contact information, and company legal address proof.
Post-Incorporation Tasks:
Register with the tax office and SGK.
Hire a certified public accountant (CPA).
Open a bank account.
Apply for e-ledger, e-invoice, and fiscal stamp.
Obtain a company stamp.
Apply for e-notification.
Apply for required licenses and permits.
Costs: Company formation typically costs around 4,000 EUR.
Timeframe: Company formation can take 1-3 days for shareholders in Turkey, but longer for shareholders abroad.
Tax Obligations: Companies must pay corporate income tax, provisional tax, value-added tax (VAT), income tax, stamp tax and withholding tax.
Work Permits: Foreigners do not need a work permit to establish a company but will need one if they plan to be a director and reside in Turkey. A work permit can be obtained if the company has a paid-up capital of at least 500,000 TRY or employs at least 5 local workers.
Additional Notes
Foreigners can own 100% of a company in Turkey.
It is advisable to seek professional support from a Turkish accountant or CPA.
Online company registration is possible, but professional assistance is recommended.
The liquidation process is complex and lengthy, requiring guidance from a Turkish Accountant or Financial Advisor.
Joint stock companies are required to have at least one lawyer.
This information should provide a comprehensive overview of the key aspects of registering a company in Turkey for foreign investors.
More information: info@ozmconsultancy.com
