Establish a Business in Turkey

ESTABLISH A BUSINESS IN TURKEY AND OPEN YOUR BRAND TO THE WORLD

Turkey Residence Agency offers business registration services for our clients with experienced lawyers and accountants.

STEPS OF REGISTERING A BUSINESS

1. Company Headquarters

According to the Turkish Law, your company must have an address before establishment.

  • The first option is to rent a physical location for your company. Rent contracts in Istanbul for offices and shops start from 1,500-2,000 Turkish Liras.
  • The second option is to rent a virtual office. With this option you will have a legal address, but not a physical location.

2. Equity and Capital of the Company

According to the Turkish Commercial Law, the minimum capital amount is 10,000TL. However, we advise our clients to deosit 100,000TL capital to facilitate the following procedures:

  • Work Permit Application
  • Being a part of trade organizations such as TUSIAD; MUSIAD, etc.
  • Import and Export Activities
It is not compulsory to deposit the capital in the bank during the establishment process, the amount has to be deposited before applying to the work permit or within 24 months from the date of establishment.

TYPES OF COMPANIES

The Joint Liability company

It is a company established to operate a business under a specific trade name, The liability of any of the shareholders is limited only to the capital subscribed and paid by the shareholders. There is no minimum capital requirement. All contributors need to be real people. Shareholders’ equity and obligations are determined through the Statutes.

This type of company has to be established by at least one real person or a legal entity and fifty people at the most, and the liability of shareholders is limited to the capital subscribed and paid by the shareholders. The capital of such company shall be not less than 10,000TL minimum for the establishment of the company per person, and 12.500 for two persons.

The Limited Liability company

This company has to be established by at least one real person or a legal entity and fifty people at the most, and the liability of shareholders is limited to the capital subscribed and paid by the shareholders. The capital of such company shall be not less than 10,000TL minimum for the establishment of the company per person, and 12,500TL for two people.

The Limited Partnership corporations

The Limited partnership corporations is a company established to run a business under a specific brand name. As the liability of some shareholders is limited to the capital subscribed and paid by the shareholders (financiers), there are no limits on liability for some shareholders. Only legal entities funded. There is no minimum capital requirement. Shareholders’ equity and obligations determined through the Statutes.

The Joint Stock company

At least five shareholders are needed to incorporate this company type (Real persons or legal entities), and the requirements for the minimum share capital is 50,000TL The management of the company is also foreseen by a board of directors, together with a supervisory board.

REGISTER YOUR COMPANY WITH OUR PROFESSIONAL LAWYERS AND ACCOUNTANTS

Tax incentives include customs, VAT and corporate income tax exemptions that depend on the sector and region of the company. Non-tax incentives include allocation of free land, assistance for R&D and market research, and up to 80% grant on social security payments of the employees. Other business initiatives are “Organized Industrial Zones” and “Free Trade Zones” that incentivizes export-oriented industries.
  • Tax and non-tax incentives
  • Most competitive 20% corporate income tax rate in the OECD
  • Double taxation treaties with more than 70 countries
  • Generally applied 18% VAT rate with some products/services falling under 1% and 8% rates
  • Customs Union with the EU and Free Trade Agreements with 16 countries
  • Bilateral investment treaties with 82 countries, including Russia, Ukraine, Uzbekistan, Kazakhstan etc.