Culture, diversity, and beauty: Turkey has it all. Situated at the crossroads of Asia and Europe, this beautiful country doesn’t just boast of stunning views and rich culture. Turkey also has a rapidly-strengthening economy and enjoys its role as a hub of tourism.
For business owners looking to expand into other markets, Turkey offers the perfect opportunity. Not only does the country act as a gateway between the vast markets of Asia and Europe, it offers various other incentives that make investing here a viable option.
CompyCo is dedicated to helping you achieve success with your new business venture. Expanding into another jurisdiction is no easy task, but we’ve got years of experience, a team of specialists, and a vast network to assist you.
High consumer spending, low operating costs, government incentives, a large market, and a talented young workforce are all things you can take advantage of.
Apart from tourism, Turkey’s major industries include textiles, electronics, food processing, construction, and mining. Partner with us to seamlessly set up a successful business in Turkey.
Forms Of Companies In Turkey
- LS “Limited Şirket”—Limited Liability Company
- “Sharikat Almanatiq Alhura”—Free Zone Company
- “Maktab Tamthiliin”—Representative Company
- “Sharikat Altaedin”—Mining Company
- “Sharikat Tatwir Altiknulujia”—Technology Development Zone Company
- As “Anonim Şirket”—Joint Stock Company
What is the difference between LS and AS companies in Turkey?
The most popular Turkish company types amongst investors are limited liability companies (LS) and joint stock companies (AS).
Both company types require one minimum 1 shareholder and the nationality of the shareholder is not a requirement.
The minimum share capital to establish an LS company is 10,000 TL, while AS companies require 50,000 TL.
Fundamentals Of A Limited Liability Company
|Corporate tax in Turkey||VAT in Turkey|
|Starts at 22%||18%|
Fundamentals of limited liability companies in Turkey
|Limited liability company||LS|
|Minimum Share capital||10 000 TRY|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local directors required||No|
|Bank signatory must travel||Yes|
|Timescale for company formation||3 weeks|
|Timescale for bank account opening||3 weeks|
|Timescale for obtaining VAT number||1-2 week|
|Statutory audit requirements||No|
|Shelf companies available||Yes|
How can I set up my company in Turkey?
Since all countries have varying legal and financial requirements, working with an experienced company to help you set up your business is essential. The Turkish government has taken steps to reduce the bureaucratic processes that slow down the process and attempted to make the investment environment cheaper and easier.
With CompyCo’s assistance, you’ll be able to complete the registration process in just a few days. Some of the steps involved in the process are:
- Submission of the memorandum and Articles of Association with the Central Registration System (known as the Merkezi Sicil Kayıt Sistemi or MERSIS).
- Notarize all company documents and translate them into Turkish
- Non-Turkish shareholders and board members need to obtain a potential tax identity number.
- Deposit a part of the share capital – travel is a must to meet the banker.
- Once the company’s name is decided, apply for registration at the Trade Registry Office
- When the registration is complete, we help you ensure compliance by completing a mandatory determination report that notifies the Tax Office and Social Security Administration.
Setting up a company in another country can seem challenging but working with experienced professionals will make the process hassle-free for you.
The lucrative Asian and European markets await you and Turkey offers a profitable opportunity to break into it. Home to several international businesses, the country offers favorable business conditions and the stable political environment you need to thrive.
CompyCo provides exceptional services at cost-effective rates, helping you meet your business goals while staying within your budget. We’ve got a vast network of professionals in Turkey to work with us to assist you every step of the way.
Our full-service solutions are enabled by our role as your sole point of contact during the process. You don’t have to coordinate with various professionals in Turkey to get the job done, we’ll work with them on your behalf. From taxation and banking to human resources and incorporation, CompyCo ensures a smooth, simple process.
When you work with us, you’ll enjoy some peace of mind to focus on your business’s operations while we manage the logistics.
Bank Account Opening
It’s important to understand the Turkey banking system before you set up your bank account. The country has a combination of local and international banks for you to choose from.
Banks may sometimes refuse to open a bank account, that’s why it’s necessary that you increase your approval chances from the very beginning. For a business owner setting up outside your jurisdiction, it’s essential to meet this requirement for registering your company. This may depend on the business activity of your company or your country of origin.
Once your company is registered, your corporate bank account can be opened within 3 weeks. In some cases, you’ll have to travel to Turkey to give an interview with the bank’s representatives. However, some circumstances will allow you to stay in your own country while CompyCo’s team will liaise on your behalf.
You’re required to submit a potential tax number obtained from the Tax Authority, notarized corporate documents, and proof of your address and identity. You can avail the bank’s facilities once your account is set up. These may include debit and credit cards, internet banking facilities, checking accounts, and wealth management services.
Need more information about opening a bank account? Head over here.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration:
- Turkey’s fiscal year is the same as its calendar year
- Non-residents are limited tax liable and are only subject to taxes on the revenue they gain
- Corporate income tax in Turkey is levied at 22%
- The standard rate of VAT in Turkey is 18%
How can you employ staff in Turkey?
If you’re setting up your company outside your jurisdiction, it can be intimidating to start hiring employees. However, hiring the right people is vital to your business’s success. Working with an expert who specializes in the field ensures you make the right decisions for your business.
CompyCo caters to all your growing business’s recruitments in Turkey. We meet all your HR-service needs by offering unique, custom solutions to you. With our vast network of HR experts in Turkey, our team will help you navigate the employment legislations and regulations in the country.
We want you to focus on your newly-established company instead of these time-consuming tasks. After gaining insight from you, CompyCo looks after recruitment and onboarding of new hires, ensuring legal compliance, writing up employment agreements, and carrying out payroll services.
Turkey has a young workforce that’s filled with highly-skilled individuals who’ll add value to your company. However, if you want to employ just one person to work remotely, we’ll make it possible. If you opt for this alternative, you can forgo the process of local company registration as an employer.
Have any questions? Take a look at our HR services page for more information about our International HR services!