Rules and Regulations of Establishing a Business in Turkey
Turkey has been an easy ground for startups in the past few years, attracting big investors and small investors through the helpful and supporting system and easy administrative dealings offered by the government. Investors can see easily the potential in the country as becoming the fastest growing economy in the world along with the huge governmental ongoing projects which will boost the economy even more.
Another important feature is the unique mix between the European and eastern culture which attracts young generations from all over the world creating differentiation and variation.
Reasons to set up a startup in Turkey:
⦁ Simplified registration and fast procedures to open a company within few days
⦁ Foreign investors can benefit from the same rights and obligations as Turkish business owners.
⦁ The Turkish authorities created an investor-friendly environment in terms of taxation laws
⦁ A developed market and huge industrial manufacturing
⦁ An exemption of taxation if the investors choose a free zone
⦁ Strong tourism, agriculture, and industrial sectors
⦁ The possibilities of obtaining Turkish citizenship by investing a 250.000$
Steps to set up a business in Turkey:
⦁ Appoint a lawyer or ask for legal advice and understand the country's rules and regulations.
⦁ Identify your business and its type
⦁ prepare the legal documents required and have them notarized
⦁ Open a corporate bank account and deposit if required by law
⦁ Submit the documents and details of the shareholders and managers
⦁ Obtain the Tax and Vat numbers and register for social insurance
It is very important to foreigners and investors to make their research and put a plan for their business before starting and it is always better to take advice from someone with local experience and related background or a lawyer who can guide you through all the procedures and risks you might face. It is a challenge to startup a business in a totally different country with different culture and language but with a good plan, a legal advisor, and researches everything can be achieved.
Hiring A Legal Advisor:
Starting a business in a foreign company can be a challenge with the different rules and laws despite the easy producers. An important step for investors is to hire an attorney or legal advisor to be updated and on the loop with all the laws.
Some investors might tend to appoint an agent who can establish the company for them so they can save time and all the burden of going through all the steps.
Types of Businesses foreigners can startup in Turkey:
The biggest and most profitable sector in Tourism is why most foreigners choose to invest in it by opening cafes, restaurants, tourism offices and also because it is easier to manage. The real estate sector is also very growing in the past few years with the growing real estate market in Turkey and the big governmental projects. These businesses are easy to establish for foreigners however there are some types that cannot be established only with the approval of the Ministry of commerce and industry such as banks, financial institutions, foreign currency exchange offices...
A Private Limited Company and its cost:
Foreigners can establish a limited company with 1 shareholder or more with a minimum share capital of 10.000TL which has to deposit in the first phase of establishing the company
Turkish laws concerning Trading Name:
One of the important laws about establishing a company is that the trading name must be original and not used by any other companies before. Some words related to the Turkish government must be used in the name and some other foreign names only can be used if they don't oppose any government policies.
The registration of the company in the Trade register office:
The trade register office is the main authority in charge of the incorporation of all legal companies in the country. It has many branches and offices in all cities so investors can reach their nearest office to start all the procedures.
⦁ Prepare the required documents and the articles of association and having them notarized
⦁ Get an Appointment at the office
⦁ On the registration day you must provide these forms:
- A registration application form
- A written request for application
- Identification of ownership
-A letter of commitment with article 29 of the Trade registration regulations
- Receipt of payment of the deposit(normally 1/1000 of the company's capital)
Once foreign investors start up companies in Turkey, a tax must be paid on the profits earned and declared just like Turkish citizens, and they need as well hire an accountant for their company and pay for the services.
Citizenship by Investment for Foreign Investors:
The Turkish Government has passed a new law for foreigners who want to obtain Turkish citizenship. It is now possible through a 250.000$ worth investment in Turkish property or through a capital investment of 500.000$ worth or a deposit of 500.00$ in Turkish banks.