How to Start a Business in Turkey

Turkey is a country with a strong economy and a dynamic business environment. Starting a business in Turkey is a compelling option for foreign investors. The steps required to start a business in Turkey are as follows:

1. Selecting a Business Structure

The first step in starting a business in Turkey is to select a business structure. The most common business structures in Turkey are limited liability companies and joint stock companies. A limited liability company is a business structure that is owned by one or more natural or legal persons and whose members are liable to the company only up to the amount of their capital contributions except governmental payments. A joint stock company is a business structure that is owned by natural or legal persons and whose members are liable to the company only up to the amount of their capital contributions.

2. Preparing a Main Agreement for The Company

Once the business structure has been selected, a main agreement must be prepared. A main agreement is a document that regulates the establishment, organs, legal personality, capital, management and representation, liquidation, and other matters of the company. The main agreement must be notarized.

3. Contributing Capital

Once the business agreement has been prepared, all or part of the capital must be contributed. The minimum capital requirement for a limited liability company is 10,000 Turkish liras, and the minimum capital requirement for a joint stock company is 50,000 Turkish liras. Capital can be contributed in cash, goods, or services. The capital will be available to use after establishment of the company.

4. Filing the Business Establishment Declaration and Registration

Once the capital has been contributed, an application must be made to the Trade Registry Office for the filing and registration of the business establishment. The business establishment declaration includes information such as the company’s name, headquarters, field of activity, capital amount, and the identities and addresses of the shareholders.

5. Obtaining a Tax Certificate

Once the business establishment has been completed, a tax certificate must be obtained from the tax office. A tax certificate is a document that shows that the company is a taxpayer.

6.  Other Procedures

Once the business establishment has been completed, other necessary procedures must also be completed. These procedures include obtaining a business license, opening a bank account, and starting accounting procedures.

Working Permit Issues

If a foreign shareholder of a company is also going to assume the role of the company’s manager in Turkey, the foreign manager is required to obtain a work permit in Turkey.

Advantages of Starting a Business in Turkey

There are many advantages to starting a business in Turkey. These advantages include Turkey’s strong economy, dynamic business environment, attractive tax rates, and incentives for international investors.