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Overview
The conditions for setting up a business and share transfer are the same as those applied to local investors. International investors may establish any form of company set out in the Turkish Commercial Code (TCC), which offers a corporate governance approach that meets international standards, fosters private equity and public offering activities, creates transparency in managing operations and aligns the Turkish business environment with EU legislation as well as with the EU accession process.
Turkey has introduced reforms with a view to making it easier to do business in Turkey in order to enhance the investment environment, eliminating red tape in setting up a business and minimizing costs and procedures. To this end, establishing a company is now only carried out at Trade Registry Offices located in Chambers of Commerce and designed to be a ‘one-stop shop’. The process is completed within the same day.
We will walk you through the necessary steps to establish a business in Turkey.
Starting a business in Turkey can be an exciting opportunity, but it requires careful planning and adherence to specific steps. Here's a comprehensive guide to help you navigate the process and set your business up for success.
Understand the Legal Frameworks
Before starting a business in Turkey, familiarize yourself with the country's laws and regulations.
Turkey’s legal framework covers company establishment procedures, foreign ownership rights, taxation, and labor laws. It's vital to understand these rules to ensure compliance and avoid legal complications later.
Consulting with a legal expert or business advisor is highly recommended to stay informed about the latest regulations and processes.
Choose Your Legal Structure
Selecting the right business structure is a critical decision that will impact taxation, liability, and operational flexibility. The most common options for foreign investors include:
Establishing a Limited Liability Company (LLC): Ideal for small to medium-sized businesses. Limited Liability Companies require minimum 50.000TL capital.
Establishing a Joint Stock Company (JSC): Suitable for larger ventures or public trading. Joint Stock Companies require minimum 250.000TL capital as well as at least 5 shareholders.
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Establishing a Branch Office: Allows an existing foreign company to operate in Turkey.
Establishing a Liaison Office: For companies looking to explore the Turkish market without conducting commercial activities.
Evaluate your business goals to determine which structure fits your needs.
Obtain a Tax Number
A tax number is essential for all legal and financial activities in Turkey. You can obtain it from the local tax office by providing your passport and other identification documents. This number will be required for tasks such as opening a bank account, registering your business, and paying taxes.
Register Your Company
Registering your business is one of the most crucial steps. This involves preparing and submitting the necessary documents to the Trade Registry Office. These documents typically include:
Articles of Association
Founders' identification
Proof of address for the business
Capital deposit receipt
Once registered, your company will be listed in the Turkish Trade Registry Gazette.
Secure a Legal Adress
Every business in Turkey must have a registered legal address. This can either be a physical office space or a virtual office for smaller operations. The address will be used for correspondence with government authorities and should comply with zoning regulations.
Open a Business Bank Account
Opening a Turkish business bank account is mandatory for depositing your company’s initial capital. Choose a reputable bank that offers services tailored to foreign investors. You’ll need documents like your tax number, company registration certificate, and proof of identity to set up the account.
Hire an Accountant
Hiring a certified accountant is a legal requirement in Turkey. Your accountant will handle financial reporting, tax filings, and payroll management, ensuring compliance with Turkish accounting standards. A knowledgeable accountant can also help you take advantage of tax incentives and manage your cash flow effectively.
Obtain Necessary Licenses and Permits
Depending on your industry, you may need specific licenses or permits to operate legally. For example:
Food businesses require health and hygiene certificates.
Construction companies need additional safety permits.
Import/export businesses must register with customs authorities.
Research the permits applicable to your business and ensure they are obtained before starting operations.
Register Your Social Security
If your business plans to hire employees, you must register with the Social Security Institution (SGK). This ensures your employees have access to healthcare and other benefits. You’ll need to submit employee contracts, company registration documents, and other required paperwork to complete the process.
Market Your Business
Once all legal and administrative steps are complete, it’s time to focus on marketing. Develop a strategy to promote your products or services, both locally and internationally. Consider:
Building a professional website to showcase your business.
Leveraging social media to reach your target audience.
Attending trade fairs and networking events to establish connections.
Investing in branding and advertising can significantly increase your visibility and help you gain a competitive edge.
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