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Company EstablishmentCompany Setup in Turkey

Starting a business abroad is an exciting venture, but Company Setup in Turkey requires a thorough understanding of the host country’s regulations, culture, and economy. In this comprehensive guide, we will delve into the process of company setup in Turkey, an increasingly attractive destination for foreign investment due to its strategic location, robust economy, and favorable business environment.

Company Setup in Turkey

Turkey, strategically located at the crossroads of Europe, Asia, and the Middle East, offers a unique blend of Eastern and Western business cultures. Its well-developed transportation and logistics infrastructure, coupled with a large and diverse market, make it an ideal gateway for businesses seeking to access these regions.

The Turkish government provides a range of support and incentives for foreign businesses, including tax exemptions and reduced corporate tax rates. There are also loans, grants, and investment incentives for foreign businesses investing in Turkey.

Notably, Turkey’s Foreign Direct Investment (FDI) Law is based on the principle of equal treatment, allowing international investors to enjoy the same rights and liabilities as local investors. The country has initiated reforms to enhance the investment environment, eliminate red tape in setting up a business, and minimize costs and procedures, making the company setup process more accessible.

Choosing the Right Type of Company

Before diving into the company setup process, it is crucial to select the appropriate company type that best suits your business needs. In Turkey, several types of companies are available, each with distinct characteristics:

  1. Limited Liability Company (LLC): This is the most common form of company in Turkey, offering limited liability protection to its shareholders. It requires a minimum share capital, and the liability of each shareholder is limited to their capital contribution.

  2. Joint Stock Company (JSC): A JSC is suitable for larger businesses seeking to raise capital through the stock market. It requires a higher minimum share capital compared to an LLC and is governed by more stringent regulations.

  3. Branch Office: If you already have an existing foreign company and wish to establish a presence in Turkey, a branch office can be a suitable option. However, keep in mind that it does not constitute a separate legal entity from its parent company.

  4. Liaison Office: A liaison office is established for non-commercial activities, such as market research, promotion, and communication. It is prohibited from conducting commercial activities.

Company Registration Procedures in Turkey

Once you have decided on the company type, the registration process involves several steps:

  1. Choose a Company Name: Select a unique and suitable name for your company that adheres to Turkish naming regulations.

  2. Obtain Tax Identification Number (TIN): Before proceeding with the registration, all shareholders and directors must obtain a TIN from the local tax office.

  3. Prepare Required Documents: Gather the necessary documents, which may include passport copies, address proof, articles of association, and a notarized signature circular.

  4. Apply for Company Registration: Submit the required documents to the Trade Registry Office in the province where the company will be based.

  5. Obtain Work Permits: Non-Turkish employees need to obtain work permits to work in Turkey.

Legal Requirements for Company Setup in Turkey

To successfully open a business in Turkey, you must meet certain legal requirements:

  1. Minimum Share Capital: The amount of minimum share capital required varies depending on the company type. For example, an LLC typically requires a minimum share capital of TRY 10,000.

  2. Shareholders and Directors: An LLC must have at least one shareholder and one director, while a JSC requires a minimum of five shareholders.

  3. Legal Representative: If the shareholders are non-residents of Turkey, the company must appoint a legal representative who is a Turkish resident.

  4. Physical Address: The company must have a physical address in Turkey where official documents can be served.

Company Setup Lawyer in Turkey

Company Setup Lawyer in Turkey

Setting up a business in Turkey involves navigating complex legal terrain. Engaging professional legal assistance can simplify the process and ensure compliance with Turkish laws and regulations, thereby contributing to the long-term success of the business.

İstanbul Law Office, a leading law firm in Istanbul, offers skilled and experienced Company setup Lawyers who can guide you through the entire process of company setup in Turkey. Our English and Turkish-speaking team can provide comprehensive legal services, including company formation, tax consultancy, and ongoing legal support. Get in touch with our team for more information.

FAQs on Company Setup in Turkey

1. Can a foreigner open a company in Turkey?

Yes, foreigners have equal rights to open companies in Turkey, just as nationals. Turkey welcomes foreign investments in various business fields.

2. What is the minimum share capital for setting up a company in Turkey?

The minimum share capital depends on the type of company. An LLC typically requires a minimum share capital of TRY 10,000, while a JSC requires a minimum share capital of TRY 50,000.

3. Do I need a physical address in Turkey to set up a company?

Yes, the company must have a physical address in Turkey where official documents can be served.

4. Can İstanbul Law Office assist me in setting up a company in Turkey?

Absolutely! Our team of experienced lawyers at İstanbul Law Office can guide you through the entire process of setting up a company in Turkey. We can handle all legal aspects, ensuring a smooth and hassle-free process. Contact us to get started.

Conclusion

Setting up a company in Turkey offers great potential for growth and expansion, but the process requires careful consideration of company types, procedures, and legal requirements. With the right guidance and legal assistance, the process can be smooth and hassle-free. Our team of attorneys at İstanbul Law Office can assist you at every step, ensuring your business venture in Turkey is successful.