Company Registration in Turkey
Company Registration in Turkey: A Comprehensive Guide
Turkey, with its strategic geographical location bridging Europe and Asia, offers immense opportunities for entrepreneurs and businesses. With a dynamic economy, growing infrastructure, and a business-friendly environment, registering a company in Turkey has become a highly sought-after process for both local and foreign investors. This guide will walk you through everything you need to know about company registration in Turkey, ensuring a seamless and efficient experience.
Why Register a Company in Turkey?
Strategic Location
Turkey’s position between Europe and Asia provides unparalleled access to diverse markets.
Strong Economy
With one of the fastest-growing economies in the region, Turkey offers numerous opportunities for businesses in various sectors, such as tourism, technology, and manufacturing.
Investor-Friendly Policies
Turkey has implemented numerous reforms to attract foreign investment, including simplified company registration procedures, tax incentives, and free trade zones.
Types of Companies in Turkey
1. Limited Liability Company (LLC)
Most common type for small and medium-sized enterprises (SMEs).
Requires a minimum capital of 10,000 TRY.
Liability of shareholders is limited to their share capital.
2. Joint Stock Company (JSC)
Suitable for larger businesses.
Requires a minimum capital of 50,000 TRY.
Shares can be publicly traded.
3. Sole Proprietorship
Ideal for individual entrepreneurs.
Easier to establish but comes with unlimited liability.
4. Branch Office
Allows foreign companies to operate in Turkey without forming a new legal entity.
5. Liaison Office
Non-commercial presence for market research or representation.
Steps to Register a Company in Turkey
Step 1: Decide on the Company Structure
Choose the most suitable type of company for your business goals.
Step 2: Prepare the Required Documents
Articles of Association
Passports of shareholders and directors (translated and notarized)
Tax Identification Numbers (for all shareholders)
Proof of registered address in Turkey
Step 3: Obtain a Tax ID Number
Apply for a Tax ID at the local tax office.
This is a mandatory step for all shareholders.
Step 4: Open a Bank Account
Deposit the required share capital into a Turkish bank account.
Obtain a bank receipt confirming the deposit.
Step 5: Register with the Trade Registry Office
Submit all documents to the Trade Registry Office.
Obtain the registration certificate and legal entity status.
Step 6: Register for Taxes and Social Security
Register your company with the Turkish Revenue Administration for tax purposes.
Register employees with the Social Security Institution.
Benefits of Registering a Company in Turkey
Access to Free Trade Zones
Tax exemptions and other incentives for companies operating in these zones.
Simplified Procedures
Streamlined company registration processes reduce bureaucratic hurdles.
Skilled Workforce
A young and dynamic population with a growing pool of skilled professionals.
Tax Advantages
Competitive corporate tax rates and bilateral agreements to avoid double taxation.
Common Challenges in Company Registration
Language Barrier
Most official documents and processes are in Turkish. Hiring a local consultant or lawyer is highly recommended.
Bureaucracy
Despite improvements, navigating local regulations can be challenging for foreign entrepreneurs.
Cultural Differences
Understanding local business culture is essential for successful operations.
Company Registration Costs in Turkey
Below are the typical costs that can be incurred to set up a company in Turkey:
| FEES AND EXPENSES | USD |
| Attorney fee for the registration of a new company | 1,250 |
| Opening a bank account | 450 |
| Tax Office registration | 250 |
| Accounting fees per month | 250 |
| Company address per month | 50 |
| Official company registration expenses (Notary expenses for Articles of Association and all other documents) | 750 |
Note: The above costs are a general approximation and may vary. It is important to seek our support to fully understand the costs of company formation.
Company Registration in Turkey for Foreigners
Turkey is a country that offers an open business environment to foreign entrepreneurs and encourages investments. The steps and documents required for foreigners wishing to establish a company in Turkey are as follows:
- Company Type Selection: Foreigners can choose from different company types in Turkey, such as Limited Liability Company or Joint Stock Company. Each type of company has different capital requirements and management structures.
- Application to the Trade Registry: An application is made to the Trade Registry with the company’s incorporation documents. The application includes information such as the company’s name, headquarters, purpose, capital, and directors.
- Obtaining a Tax Number: The company becomes a taxpayer by applying to the Tax Office and obtaining a tax number.
- Opening a Bank Account: A bank account is opened in the name of the company. Company capital is deposited into this account and transactions are carried out through this account.
- Work Permit and Visa: A work permit and residence permit may be required for foreign partners or employees who wish to live and work in Turkey.
- Notary Approval: The company’s incorporation documents and contracts are approved by a notary public.
- Official Newspaper Announcement: The establishment of the company is announced in the Turkish Trade Registry Gazette.
It is important for foreigners wishing to establish a company in Turkey to comply with local legal regulations and prepare the required documents in full. In addition, it would be beneficial to get support from a specialized advisor to understand the legal procedures and tax regulations in Turkey during the process.
Online Company Registration in Turkey
Establishing a company in Turkey can now also be done online. For those who want to register a company online in Turkey, the steps to be followed and the points to be considered are as follows:
- Opening an Internet Branch: The first step to register a company in Turkey is to access the internet branch of a bank in Turkey. The bank will request some documents and information required for the incorporation of the company online.
- Preparation of Documents: It is necessary to prepare electronic copies of the company’s articles of association, documents related to the founders and directors of the company.
- Online Application: You can apply to establish a company online through the bank’s internet branch. When filling out the application form, it is important to enter accurate and complete information such as the name, center, purpose, capital and directors of the company.
- Making Payment: During the online application, the amount required for the company’s capital must be deposited into the bank account. This payment can be made through online banking.
- Approval of Documents: The bank will review and approve the company’s incorporation documents after the online application and payment. Approved documents can be received electronically.
- Other Transactions: In order to complete the incorporation of the company, it is necessary to apply to the Tax Office, register with the Trade Registry and make the necessary official announcements. These steps can usually be done online.
- The online company registration process provides a great convenience for those who want to establish a company in Turkey. However, it is important to get support from an expert consultant in order to carry out the procedures correctly and completely.
FAQ
Yes, Turkey allows 100% foreign ownership of companies.
The process typically takes 2-3 weeks, depending on the complexity of the business.
Costs vary depending on the company type and additional services, such as legal consultation, but generally range from 50,000 to 100,000 TRY.
No, but foreign directors or employees will need work permits to operate the company.
Some steps can be completed online, but physical presence may be required for certain procedures.
Conclusion
Registering a company in Turkey is a strategic decision that opens doors to a vibrant economy and expansive markets. By understanding the steps, requirements, and challenges involved, you can ensure a smooth registration process. Whether you’re a local entrepreneur or a foreign investor, Turkey’s business environment offers opportunities that are hard to ignore. For further assistance, consult a local expert or visit the Turkish Trade Registry’s official website for more information.
