How To Establish A Company In Turkey As a Foreigner
Turkey is a good location between two significant markets. Its own substantial domestic market, a good economy, an open investment climate, and good infrastructure are notable reasons why foreigners choose to establish a company in Turkey.
Turkey has a vibrant economy that attracts foreign investors as it has a promising economic growth among the OECD (Organisation for Economic Co-operation and Development) members. Its stable government, favorable tax regimes, and continuing negotiation terms for entry into the European Union give major incentives to foreign investors. It also gives tax benefits to those who open companies in certain free zones.
Outlined next are what you need to know about company incorporation in Turkey;
Types of companies in Turkey
The types of companies that can be chosen for company formation in Turkey are:
- the joint-stock company: it is usually used by investors interested in setting up large operations in Turkey
- the limited liability company: it can either be private or public, however, the private type is usually employed by foreign enterprises
- the commandite company: it is a non-corporate business form and is the equivalent of a limited partnership in other countries
- the collective company: it is also a non-corporate type of structure and can be registered by natural persons only
- the cooperative company: it is one of the oldest and also one of the most popular types of companies in Turkey.
Other business alternatives for investors include branches or subsidiaries.
Once the type of business that fits the activities is selected, registration and establishment won’t take long.
Documents needed for company formation in Turkey
The documents needed for the registration of a company in Turkey depend on whether the shareholder/shareholders are individuals or companies. On account of individuals, two copies of their passports or IDs must be filed upon registration. In the case of legal entities, the following documents are required for the company formation:
- the foreign company’s Articles of Association, which must be translated into Turkish and legally approved.
- the foreign company’s Certificate of Registration which must also be translated and legally approved.
- a resolution of the company’s management board for creating a company in Turkey.
- Detailed information about the person in the foreign company who will represent it at the Turkish business’ administration.
- information about the company’s manager/managers and their passport copies.
Company managers must also be assigned in companies that have individuals as shareholders.
How to incorporate your company in Turkey
The first task in incorporating a company in Turkey is drafting the articles of association, which must be signed by the company directors. The articles of association must be drawn up legally and adapted to article 279 of the Turkish Commercial Code. The document needs to incorporate the phrase “limited” in the company’s trading name. The founders need to state their details such as nationality, full names, surnames, addresses, and trading addresses. The document will then be taken to be officially notarised and translated where essential.
The minimum share capital must be deposited in a bank account under the company name, and after this, investors can begin the registration process, paying a fee to the Turkish Commercial Registry Office, with the necessary documents. The Registry Office will issue a registration certificate and the company’s incorporation will be published in the Turkish Gazette. The company must then register for VAT with the applicable tax authority.
What are the areas of interest of Foreign Investors?
The major areas of interest for foreign investors who wish to establish a company in Turkey is represented by each of the largest private investment:
Finally, you should note that some other incentives that interest foreign investors are the double taxation agreements and the free trade agreements, and trade between some countries and Turkey is allowed without being subject to customs duties.
Foreigners have equal rights to open companies, just as nationals. Turkey welcomes foreign investments in various business fields and a business can be incorporated in one week if all the documents are in order.
Are you ready to incorporate your company in Turkey in a fast and easy process? If so, let’s go ahead together and contact your Damalion expert now to open your Turkish company.
