The monetarily booming European country called Turkey is a great destination for setting up new businesses. The country’s position as a NATO member, trade tariff deals with neighboring nations, and the resultant growing economy only adds to the reasons that support the cause of starting or running a business in Turkey.
You can learn about it in this guide for those who have no concise knowledge of opening a Business in Turkey. Additionally, we’ll also state some quick tips and advantages that can further make you familiar with the positive aspects of opening a business in Turkey.
The Procedure of Opening Business in Turkey
Turkey’s geolocation is quite optimal to support various business types for its economy, beyond its major benefactors being the tourism and agricultural industries. To set up a new business of any kind involves having a few prerequisites that can help make the process easier, whether you’re a native Turkish citizen or a foreigner.
You’ll need to have an accountant familiar with performing the business advisory role, and the same also goes for lawyers. You’ll also need to have one or more attorneys besides having a translator, especially if you’re a foreigner or an ex-pat.
While that settles the human resources you must have to set up a new business in Turkey, let’s look into the legal requirements you need to follow.
Establishing Business & Registration
A person who wants to start a new business would first require to have the capital sum of at least $2000 to $2500 ready to pay for various registration fees and other expenses tied to setting up the business legally. This sum isn’t inclusive of the cost of acquiring land and other necessary investments such as capital evaluation of the company itself and so on.
Note: If you are a Turkish Citizen, you can skip the Visa step to read the Location section.
If you’re an ex-pat, you’ll need to obtain a visitor’s visa or an equivalent type of visa that allows you to support or participate in the below-mentioned procedures. You can obtain it by applying to the Turkish Consulate or Embassy in your country.
After acquiring the visa, you could enter the country(Turkey) to determine the type of company or corporate body you will open to commence your business. Before you decide on the kind of company you will open, you must determine whether you’ll acquire Turkish land or instead rent one for setting up your company. Based on whichever option you choose, you’ll need to register your property purchase with the Commercial Register Office and the Chamber of Commerce Office of Turkey.
There can only be three types of companies that you can open in Turkey:
- Joint Stock Company (JSC)
- Limited Liability Company
- Cooperative Company
Now you’ll also need to obtain a Tax Identity Number from the Trade Registrar Office, where you will be required to submit the necessary documents. After getting the TIN, your business will gain the legal capability of performing transactions and paying taxes.
Now you’ll also need to obtain a Tax Identity Number from Trage Registrar Office where you will be required to submit the necessary documents. After getting the TIN, your business will gain the legal capability of performing transactions and paying taxes.
Notarizing the Company
Your accounting company can initiate the process of preparing the master agreement for your company to apply it to the trade registry, wherein your tax office documents and power of attorney documents will be made.
After their creation and obtaining them from the trade registrar’s office, you will be asked to sign the circulars and power of attorney of your company, wherein your sworn statement will also be taken. Do bring your translator inevitably.
Any respective type of company you pick to open will involve a need to notarize the capital. You can do so by depositing the minimum required amount based on the respective company type you pick in a Turkish bank authorized by The Central Bank of the Republic of Turkey.
Suppose your company possesses an asset of intangible currency that you want to use to guarantee capital deposit. In that case, it will undergo evaluation by bank personnel to derive a figure. This figure can be appealed and repealed until acceptance, but it will delay the process by a margin.
You will need to show an additional hundred grand Turkish lira of capital in your company’s account if you want to gain the ability to hire foreign personnel in your company. When your company’s shareholder is a foreigner, or your manager isn’t a native to Turkey, the shareholder will be demanded to produce residency papers by some banks.
After acquiring the documents mentioned above and properly registering them, your accountant or lawyer will procure for you the crucial company documents. Once all the order with Registrar Office is performed in the correct validation with the Turkish laws and VAT application is obtained with other essential documents, you can begin running your business.
Tips to Open a Business in Turkey
Just like you won’t blindly trust an opportunity if you’re someone who invests wisely, you should also consider performing an in-depth analysis of the type of company you want to build for the services or products you will provide.
- Have enough monetary arrangements of running the business initially for at least four months after opening it.
- Have a business plan ready in a documented format that you can produce before potential investors and partners to attract investment.
- Hire the services of a translator without fail if you aren’t fluent in the Turkish language.
- Hire the appropriate staff right away to handle different roles such as accounting, marketing, etc.
Advantages of Opening a Business in Turkey
- A Limited Liability Company can be established within a week with a minimum of one shareholder and one director, allowing for complete foreign ownership of the company.
- Companies operating on certain free zones in Turkey are exempted from paying VAT, corporate tax, and customs duty.
- Companies in free zones can send their earnings to their parent company without paying charges on it.
- Turkey shares trade relations with European and Asian countries and its trade route connects both continents, making it geologically perfect for claiming business opportunities.
Final Words – Opening a Business in Turkey
A foreign investor has a lot to look forward to for Opening a Business in Turkey with its positive behavior to incentivize the investors. Some laws also provide limited funding to companies setting up their base in specific locations throughout the country to make Opening a Business in Turkey a fantastic aspect.