How to Set Up a Company with a Blue Card in Turkey?

How to Set Up a Company with a Blue Card in Turkey

Turkey has emerged as one of the most attractive destinations for international investment in recent years. With its strategic geographic location, productive workforce, and rapidly growing economy, many non-citizens are considering establishing businesses in the country. Among these investors are Blue Card holders—individuals who were born as Turkish citizens but later renounced their citizenship. Despite this change, Blue Card holders continue to enjoy nearly all the rights of Turkish citizens when it comes to setting up a company.

Who Are Blue Card Holders?

A Blue Card is an identity document issued to those who were originally Turkish citizens but have acquired another nationality. This card was introduced to protect the rights of these individuals and even extends to their descendants, ensuring that their rights within Turkey remain safeguarded. With a Turkish Republic (T.C.) identity number printed on the card, Blue Card holders are legally recognized to perform most activities just as Turkish citizens do.

The Legal Framework

Blue Card holders benefit from the same legal framework as Turkish citizens when establishing a company. Their rights are guaranteed under the “International Workforce Law No. 6735” and the “Turkish Citizenship Law No. 5901.” These laws ensure that Blue Card holders:

• Can form a company, open a business premises, or even change their place of residence without needing additional permits.

• Have access to social security (SGK) and inheritance rights.

• Can obtain a tax number and conduct all commercial operations legally.

Since the Blue Card does not have an expiration date, long-term business planning and legal processes are not adversely affected.

Company Formation Procedures

The process of setting up a company in Turkey is regulated by the Turkish Commercial Code and supplemented by the official notifications, such as the one issued on December 6, 2016, regarding the Company Formation Agreement (No. 29910). Here’s an overview of the key steps for Blue Card holders:

1. Determining the Company Type and Business Address

   • Choose the type of company that best suits your business goals. Options range from sole proprietorships to limited, joint-stock, komandit, or collective companies.

   • Prepare and verify the necessary documents that confirm your business address.

2. Notarized Powers of Attorney

   • Obtain notarized powers of attorney, which can facilitate the registration process, especially if you decide to work with a legal representative or company attorney.

3. MERSIS Registration and Company Contract

   • Draft and sign the company contract through MERSIS, the central registration system for companies in Turkey. This step involves obtaining the necessary signatures from authorized representatives.

4. Tax Registration via the Interactive Tax Office

   • Complete your tax registration online through the Interactive Tax Office. Once the registration is complete, you can proceed with the issuance of your tax plate.

5. Finalization and Legal Formalities

   • Ensure that all documents and registrations comply with the Turkish Commercial Code to avoid any potential legal issues. Professional legal advice is recommended to navigate any complex situations.

Advantages for Blue Card Holders

Blue Card holders enjoy several significant advantages when setting up a company in Turkey:

• Equal Rights with Turkish Citizens:
  Blue Card holders are entitled to the same rights as Turkish citizens, eliminating the need to secure additional work permits or special authorizations for most business activities.

• Simplified Social Security and Banking Procedures:
  With access to the Social Security Institution (SGK) and the ability to easily open bank accounts, Blue Card holders can seamlessly integrate into the Turkish business ecosystem.

• Access to Incentives for Foreign Investment:
  Turkey offers considerable incentives for investments coming from abroad. These incentives are designed to stimulate economic growth and enhance the country’s attractiveness as an investment destination.

• Streamlined Online Processes:
  The use of e-government services allows Blue Card holders to manage many business operations online, including company registration and banking activities, without the need for additional documentation.

Challenges to Consider

While the process is designed to be as streamlined as possible, Blue Card holders may face some initial challenges:

• Familiarity with Legal Processes:
  One of the primary obstacles is a lack of familiarity with the Turkish legal and administrative procedures. Engaging with experienced legal consultants or corporate service providers can significantly ease this transition.

• Document Preparation and Verification:
  As with any international business setup, preparing the correct documentation and ensuring its authenticity and compliance with local laws is critical. Professional guidance can help avoid delays or complications.

Conclusion

Setting up a company in Turkey as a Blue Card holder is a viable and often advantageous option, thanks to the country’s favorable investment climate and the legal equality granted to these individuals. By following the established procedures—choosing the right company structure, completing the required documentation, and utilizing professional legal support—Blue Card holders can confidently navigate the process and benefit from Turkey’s dynamic economic landscape.

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