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Setting Up a Company in Turkey

Setting Up a Company in Turkey

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Setting Up a Company in Turkey
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Mali Müşavir Evren Ozmen
I’m Evren ozmen, a CPA based in Istanbul, advising remote workers, freelancers, and international founders on Turkish tax and cross-border structuring. I focus on practical tax strategies around: 100% service export income deduction Tax residency in Turkey Company formation for foreigners Remote work and international income I break down complex tax rules into clear, actionable guidance — without losing the legal and compliance reality behind them. info@ozmconsultancy.com 🇹🇷 Türkiye genelinde; yazılım ve dijital ürün geliştiren şirketler, yurt dışına uzaktan hizmet sunan profesyoneller, Teknopark firmaları, oyun stüdyoları ve mobil uygulama şirketlerine Türkçe ve İngilizce mali ve vergisel danışmanlık hizmetleri sunuyoruz. 📘 Insights & Publications: https://medium.com/@evrenozmen 📩 For Online Tax Advisory & Accounting Services/Danışmanlık-Mali Müşavirlik Hizmetleri: info@ozmconsultancy.com

Setting Up a Company in Turkey

1. Awareness: Why Consider Setting Up a Company in Turkey?

Turkey is a strategic hub for business, offering access to Europe, Asia, and the Middle East. Its dynamic economy, growing population, and investor-friendly policies make it an attractive destination for entrepreneurs. Additionally, Turkey's customs union agreement with the European Union and free trade agreements with various countries facilitate smooth international trade. These factors position Turkey as a compelling choice for those looking to establish a presence in the region.

2. Interest: What Are the Benefits of Setting Up a Company in Turkey?

There are several benefits to establishing a company in Turkey, including tax incentives, a young and skilled workforce, and a relatively low cost of living. The Turkish government offers various incentives for foreign investors, such as reduced corporate tax rates, free land allocations, and support for R&D activities. Furthermore, Turkey's skilled labor force and competitive operational costs can significantly boost profitability.

3. Consideration: What Are the Steps to Set Up a Company in Turkey?

Setting up a company in Turkey involves several steps:

  • Choosing a Business Structure: The most common forms are Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs).

  • Registering the Company: This includes preparing the articles of association, obtaining notarized signatures, and registering with the Turkish Trade Registry.

  • Opening a Bank Account: You will need a local bank account to deposit the minimum capital required by your chosen business structure.

  • Obtaining a Tax ID Number: This is mandatory for all business transactions.

  • Registering for Social Security: If you plan to hire employees, you must register with the Social Security Institution (SGK).

These steps are straightforward but may require professional assistance to navigate local regulations.

4. Intent: What Are the Costs Involved in Setting Up a Company in Turkey?

The costs of setting up a company in Turkey can vary depending on the type of business and location. Key costs include:

  • Company Registration Fees: These can range from €500 to €1,000 depending on the complexity of the registration process.

  • Legal and Notary Fees: Expect to pay additional fees for legal advice and notary services, which can amount to €1,000-€2,000.

  • Minimum Capital Requirement: For an LLC, the minimum capital is 10,000 TRY, while for a JSC, it is 50,000 TRY.

  • Ongoing Compliance Costs: This includes accounting, audit services, and taxes.

Understanding these costs upfront can help in budgeting and financial planning.

5. Evaluation: What Are the Legal Requirements for Foreign Investors in Turkey?

Foreign investors in Turkey enjoy the same rights and obligations as local investors. There are no restrictions on foreign ownership of a company, and foreign investors can fully own their businesses. However, certain sectors like broadcasting and maritime transport may have specific regulations. It's crucial to understand local laws and regulations to ensure compliance. Working with a local legal advisor can help navigate these complexities.

6. Decision: How to Choose the Right Location for Your Business in Turkey?

Turkey offers various cities with unique advantages for different industries. Istanbul is the financial hub, ideal for international business. Ankara, the capital, is suited for businesses related to government contracts. Izmir and Antalya are perfect for tourism-related enterprises, while Bursa is known for manufacturing. The choice of location should align with your business goals, industry, and target market.

7. Action: How to Get Started with Your Company Set Up in Turkey?

Ready to start your business journey in Turkey? Begin by consulting with a local expert who can guide you through the entire process—from choosing the right business structure to handling legal requirements and registration. Taking this first step can significantly reduce the time and effort needed to establish your company in Turkey.

Contact our experts for a free consultation and take the first step toward expanding your business in this dynamic market.

info@ozmconsultancy.com

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