Guide to : Setting up a company in Turkey25th April 2014
If you are thinking of setting up a company in Turkey, here is our guide to what you need to know.
Most entrepreneurs choose to establish a ‘limited company’ when opening a business in Turkey, However, there is also the option of establishing a ‘joint stock company’ and ‘Liaison office’ (or branch office in Turkey)
In this guide we will be talking about establishing a ‘Limited company’.
Setting up a company in Turkey
You may want to seek the assistance of a good English-speaking lawyer and you will need a trustworthy accountant.
You will need; Your passport (and translated version of your passport) | Tax number
The major steps to establishing your company are;
- To prepare and notarize the articles of association
- Deposit 0.04% of the capital with your bank
- Register the company at the Trade Registry Office and the Chamber of Commerce
*The original and two notarised copies of the Articles of Association must be submitted to the Trade Registry Office within 15 days from the date of notarisation together the documents listed in the Documentary Requirements section below .
*For Limited Companies, the Articles of Association must conform to Article 279 of the Turkish Commercial Code.
Please note; The articles of association are published in the Trade Registry Gazette.
Once established, the company must be registered with the local tax office and after you will receive the companies ‘tax certificate’, which must be clearly displayed at the place of business.
You local tax officer will make a visit to your office or shop within a few days to verify this information.
The Registry Office will notify the 'Ministry of Labor and Social Security' of the incorporation and both the company and its employees must be registered with that administration. The company's registered address is stated in the articles of association and any changes must be registered.
The legal books of the company must be certified by a notary on the day the company is registered.
They are as follows;
The journal, ledger, case book and inventory
Please note that a company in Turkey can be managed by foreign directors. (Work permits will be required)
And there is no requirement to have a Turkish director.
Please note; foreigners can establish a Turkish company and own it as a full 100% shareholder.
If you own a limited company in Turkey you are obligated to pay your Bağkur insurance premium for ALL directors and employees of your company.
The cost is approximately 365 TL per month and starts from the day your company is formed.
Your company accountant should arrange all the paper work for you. But if for any reason they haven't registered you for Bağkur, you will still have to pay a backdated amount from the date your company was established (or when you where first added as the company shareholder / director)
Bookkeeping and payroll services
Do not forget to prepare a rental agreement and contract with a trusted accountant.
Regulated sectors such as banks, private financial institutions, insurance, financial leasing, factoring, holdings, foreign currency exchange offices, public warehousing and the founders and operators of free trade zones and companies are subjected to the Capital Markets Law and must register with the ministry of commerce and industry. There are industry specific regulations for some sectors and this must be considered when establishing a company in Turkey.