How to establish a company in Turkey?
Turkey has a unique strategic location that combines the Eastern and Western worlds, making it a vital commercial center and if you are looking to exploit this geographical beauty and establish a successful company in this country, we will provide you with a comprehensive guide on how to start a company in Turkey.
Advantages of establishing a company in Turkey
- Turkey occupies a vital geographical position between the Eastern and Western worlds, facilitating trade with Europe and the Middle East.
- Turkey has one of the largest economies in the region, providing great opportunities for business and growth.
- Turkey has a developed infrastructure with seaports and modern airports, which facilitates transportation and export operations.
- The Turkish market is large and diverse, allowing companies to reach a wide audience of consumers.
- Turkey offers a range of facilities and incentives for new companies, such as tax exemptions and financial support.
- Through free trade agreements, companies in Turkey can easily access regional markets and nearby countries.
- Investment laws in Turkey are lax, which facilitates the process of establishing and managing companies.
- Turkey has a diversity of industries and sectors, providing opportunities for companies in various fields.
- Thanks to the size and diversity of the population, businesses can tap into a broad and diverse customer base.
- Turkey is witnessing growth in the technology and innovation sector, providing opportunities for technology companies.
- There is an active real estate market in Turkey, which makes it easy for companies to find offices and business space.
- The evolution of technology use in Turkey includes the adoption of cloud computing, which enhances business efficiency.
- Turkey has a large and diverse employment base, which makes it easier for companies to attract talent.
- Turkey enjoys relative political security and economic stability.
- The beautiful environment and rich tourism in Türkiye attract visitors and contribute to boosting business.
- There is a growing interest in Türkiye in investing in renewable energy projects.
- Turkey is strategically located to develop international partnerships and expand cross-border business.
- Turkey's financial infrastructure provides advanced banking services and financial support for businesses.
What are the types of companies in Turkey?
In Turkey, companies are divided into four main types:
Joint Stock Company:
A joint stock company is a common form of business in Turkey, where its budget is distributed among shareholders (partners) according to their equity shares and each shareholder has his or her own responsibilities depending on the number of shares he or she owns and the number of partners must not be less than five people or legal entities, and the minimum capital must be 50 thousand Turkish liras, as it allows joint stock companies to perform a variety of commercial and industrial activities, with a board of directors and a supervisory board.
Collective company:
A collective company allows only individuals to be partners, with each shareholder having the right to manage the company separately and business management can be assigned to one partner, several or all partners, by agreement of the partners or by decision of the majority of shareholders.
Limited partnership company:
A limited partnership is another form that can be established in Turkey, where it has a limited partner (unlimited liability) and a lead partner (limited liability), as it allows partners to define their responsibilities and rights through the platform.
Cooperative company:
A cooperative company is a special form, where individuals and entities cooperate to achieve specific economic interests. Partners can participate in general assemblies and influence the management of the company.
Unlimited Liability Company:
These companies are limited to certain sectors, such as banking and insurance, and have an administrative system that allows greater flexibility for management and operation.
Limited Liability Companies:
A limited liability company is a popular choice for SMEs, as it has at least one shareholder and shareholders bear a specific responsibility and are prohibited from selling company shares publicly.
Solidarity Company:
A joint liability company is established with the aim of operating a commercial project under a specific name, with specific liability to shareholders and without a minimum required capital.
In short, Turkey offers a wide range of options for company formation, making it easier for investors to choose a structure that suits their business needs and goals.
Steps to establish a company in Turkey
Before starting to establish the company in Turkey, the company’s articles of association must first be prepared and certified by the Turkish notary, with a statement of the company’s address attached and it is necessary to deposit 25% of the company's declared capital in a Turkish bank, and it is preferable for the capital to be greater than the limit specified in Turkish law to benefit from the additional powers, as it is recommended that the capital be not less than one hundred thousand Turkish liras to facilitate the procedures for obtaining a work permit and benefiting from other benefits.
It is not required to deposit capital in a Turkish bank during the incorporation period, but the deposit must be made before applying for work permits or work residence permits in Turkey, or within two years from the date of incorporation and the capital is deposited in the company's bank account, and the bank issues a document proving the deposit, and then the company's papers can be managed and the necessary approvals can be obtained.
The original copy of the company’s articles of association, along with two certified copies thereof, are required to be submitted to the Commercial Registry Office within 15 days from the date of authentication and certification at the Turkish Notary, as for limited liability companies, they must comply with Article 279 of the Turkish Commercial Code, and the company address must be clearly stated in the incorporation system.
After establishing the company in Turkey and registering it in the Commercial Registry Office, it must be registered in the tax office and receive the tax certificate, which must be displayed in a visible place in the workplace and a local tax officer visits to verify the information and tax certificate days later.
Procedures for establishing a company in Turkey
One individual or legal entity can establish a limited liability company in Turkey, and it is allowed to be managed by foreigners provided that they obtain a work permit and foreign ownership can reach 100%.
Experts advise that there is a need for a lawyer with experience in establishing commercial companies to supervise the company establishment process, as it is also preferable to employ a skilled accountant to monitor the financial matters of the established company. In addition, the presence of a chartered accountant is essential, as his role is to represent the company before the Turkish authorities and register its invoices, expenses and purchases with government agencies and the presence of a certified public accountant is considered a major requirement in Turkish government transactions.
It is important to employ a qualified and specialized team to ensure that the company runs efficiently and effectively, as it is noteworthy that the process of establishing a company in Turkey does not require a long time, as the procedures can be completed within one week or even less.
Are buyers of real estate in Turkey through companies entitled to obtain Turkish citizenship?
In this case, the owner of the property is considered the company itself and not the individual person. Turkish law stipulates that a company is considered a legal entity in itself and not an individual person, and based on this, Turkish citizenship cannot be obtained by establishing a company, purchasing a property and registering it in the name of the company and even if the value of the property exceeds $400,000, Turkish citizenship is granted to individuals and not to commercial entities.
In conclusion, we find that establishing a company in Turkey represents a strategic and promising step for investors wishing to exploit the business opportunities available in this exciting country and with its strong and supportive economic environment, and easy and flexible incorporation procedures, it allows small and large enterprises to thrive in this dynamic market.
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