How to Setup Business in TurkeyWed, Jul 15, 2020 12:00 AM
Turkey has fascinated foreign investment due to its exclusive trading location between Europe Asia and the Middle East for many years. Turkey is known globally as a country of substantial importance, meaning many international, public companies and organizations that choose to open offices in and around Turkey's major cities. The majority of these bigger companies base themselves in Ankara and Istanbul with the odd offices on the coast.
So, How Do You Set Up A Business In Turkey?
If you are looking for setting up any business in Turkey, there are a lot of options available, though you should first have to make sure you pursue some solid legal advice and do your research with the pertinent authorities.
Cooperative companies, comandante companies, joint-stock companies, liaison offices, and the set- up of a branch of a present foreign company are all options that foreigners can consider.
Then having researched for needs of our readership, and for this article, we are directing on the relatively more manageable and easy set up of a private limited company.
Can Foreigners Run A Private Limited Company In Turkey?
Yes, undoubtedly, a private limited company can be set up by more than two or two non-Turkish nationals.
Where Can I Seek Advice on Setting Up a Business in Turkey?
The first harbor of call for many is their lawyer. Make sure to employ the services of an excellent legal advisor who has previously helped ex-pats set up successful businesses and knows company laws in Turkey. Moreover, the following all have up to date and current information and are the roots of much of the information confined in this articl,:
- British Chamber of Commerce Turkey (BCCT)
- The Turkish Embassy
- The Turkish British Chamber of Commerce and Industry (TBCCI)
Is It Best To Use a Company Formation Agent?
Likewise, U.K., there is an emerging number of the company formation agents publicity services in the local press that found in most cities and towns. Several emigrants do choose to go down this route as by meeting the right agent, you can save hassle and time.
If you are thinking about using one, make sure you research and find them out first what other ex-pat companies they have helped set up. By way Of everything, some of these companies are much better than others.
What Businesses Can a Foreigner Set Up In Turkey?
Most emigrants tend to set up businesses that are in some way associated with tourism or servicing the needs of further expatriates. Restaurants, bars, hotels, shops, estate agencies, maintenance companies, holiday letting companies, etc. seem to be the norm and are usually easy for foreigners to run and organize.
There are a lot of businesses that foreigners cannot open in Turkey without preceding approval by the Ministry of Industry and commerce. These include factoring, banks, foreign currency exchange offices, private financial institutions, companies subject to Capital Markets Law, operators of free-trade zones, and public warehousing.
What Are The Costs of Setting Up a Turkish Limited Liability Company?
Costs of business and legalities setups in Turkey differ from the U.K. and mostly from other countries. A private limited company costs a sum of 5000TL to set up, with 25% of this have to be paid for 3 months from the date of creation and remaining within 3 years. Having set up the company, the directors should register the business with the local trade registry and tax office.
How Long Does a Limited Company Take To Set Up?
Amazingly, a limited company can take only 24 hours to set up, provided with all the necessary paperwork is finished to the satisfaction of the Trade Registry. It can take a long time if you are not organized.
What Is The Setup Process?
For foreigners, the Articles of Association should be drawn up conform to the rules and legally laid out in Article 279 of the Turkish Commercial Code. The document needs to be signed and written by the business's making members and include the phrase "limited" between the company's transaction name.
Organizers need to state their full names, nationality, addresses, surnames and trading addresses. It is to officially translated and notarized where necessary.
Trade Names Laws Of Turkey
You must use an original trading name that has not yet been used and registered by anyone or any company before in order not to create confusion for any third party. Some specific words cannot be used before special approval of the Turkish Council of Ministers like "Turkiye, Milli, Cumhuriyet, and Turk." If there is any foreign word or title in the name, it should not collide with any local law or culture.
Registration Of Your Turkish Company With The Trade Registry Office
All major cities of Turkey and most of the towns have offices of The Turkish Chamber of Commerce. After completing your Articles of Association, get them officially notarized. Then within 15 days, contact them to make them organize the official trade registry for you.
Make sure you have completed the following requirements.
- Filled company registration form
- Your request in written form/ application
- Any proof or information confirming you are(one of) pioneer member
- A letter of commitment clearly showing that you are liable to follow Article 29 of The Trade Registry Regulations
- Receipt of payment compulsory to be deposited in the Customers Fund Account which is usually 1/1000 of the company's capital
This may sound a bit overworking, but if you have some homework regarding legal knowledge and have appropriate command on the Turkish language, it will save you from any type of confusion and unnecessary delays in the process. If you are not much familiar with the Turkish language, it will be best to have a native speaker with you. Once you get registered, you can start your trading and business.
Any private company doing business in Turkey is liable to pay full tax on all its profits earned. Besides this, you will have to acquire the services of an accountant. Do consider that accountants in Turkey operate differently from the U.K. and usually charge a monthly fee that may be quite costly in some cases.
However, there is a regular change in laws and taxes, so keeping in hand a good accountant will be a wise step when you make your setup in Turkey.
Do Proper Homework
When you plan to do business in Turkey, make sure to do all the necessary research before you start anything. Get valuable opinions of other ex-pats in industry. You much are in approach to a lawyer and an accountant that can analyze the feasibility of your project.
You will have to keep in mind the risk factors to be ready for them. Believe in your self and your project once you have given all your best to frame it out.
Outline Your Business Plan
Be clear about your goals and determine your focusing areas before you start anything practically. Do your homework regarding your expenditures and look into the places you will have to invest, e.g., marketing, accountant fees, employees' size structure, taxes, etc. You may not be asked to present any business plan informally. Still, if you do this research and preparation, it will help you to remain focused and monitor your ongoing progress and future projections.
All the procedures and documentation for the business set up will be in the Turkish language. If you are good enough in the literature, that will be great, otherwise getting the services of a reliable Turkish speaker will be a wise decision that will save you from confusion and misleading problems.
We are partners with MFY Partners Law Firm that oversees and advises us in all of our legal process. ( MFY Partners Logo ) www.mfy-partners.com
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