How to establish a company in Turkey

COMPANY ESTABLISMENT IN TURKEY

        There are many issues that entrepreneurs and investors who want to start a business in Turkey are curious about. Especially the company's establishment process, company's establishment expenses and operating expenses are among the most curious topics.

          Questions frequently asked by people who want to start a business in Turkey: How to establish a company in Turkey, can foreigners establish a company in Turkey, how much does it cost to establish a company in Turkey, what are the costs of establishing a business in Turkey, how much are the monthly expenses of a company in Turkey, how to establish a limited company in Turkey, How to establish a joint stock company in Turkey, can a single person establish a company in Turkey, how much is the total cost of establishing a business in Turkey, is it necessary to obtain a work permit to establish a business in Turkey, is it necessary to obtain a residence permit to establish a company in Turkey?

       If you are thinking of establishing a company in Turkey, we have tried to explain the subject in all its aspects in a simple way in this article. We have tried to answer all the questions frequently asked by entrepreneurs.

Why you should establish a business in Turkey?

        Turkey is a country preferred by many investors and companies due to its business potential, geographical location, qualified workforce resources and more affordable workforce supply compared to European countries.

      According to Turkish laws and rules, foreign investors have the same rights and obligations in Turkey as Turkish citizens for business activities. Foreign firms and entrepreneurs are free to establish business in Turkey.

     Additionally to this, investors in Türkiye are actively supported by Turkey government. So, legal procedures regarding company formation in Turkey are kept very easy and simple.

       When evaluated in terms of company establishment costs and operating expenses, Turkey's advantage over European countries is quite high.

       For example; For a company providing call center services with a team of twenty people, labor costs and company expenses in Turkey are less than half of the costs in a European country.

     If you establish such a company in Turkey, you can easily find qualified workforce and serve all over the world.

     In addition, with the decision passed in Turkey in 2024, 80% of the income obtained from services provided to individuals and companies outside Turkey is exempt from income tax.

How to establish a company in Turkey as a foreigner ?  

1- To set up a business in Turkey, best important matter you should  determine an expert team experienced in foreign investors. You should agree for the company's establishment and monthly accounting services.

2-   A company/business adress is required to company formation in Turkey.  So, you should rent workplace before company formaiton. If you don't need a workplace for your business activities you can use a virtual office adress witl low charges.

    If you want to establish a company in Turkey but don't know where to s start ; you can contact with us evertime. Our firm is offering holistic solutins as a package to meet all the legal needs of entrepreneurs who want to establish a company in Turkey.

     Our services; Company formation,  accounting services, tax consulting services, virtual business adress services, payroll services, trademark registration services and consultancy services.

     With our long year experiences, we are prreparing the company of the foreign entrepreneur who comes to our office with his passport within few days. We are preparing all documents, we doing all official procedures.

Frequently Asked Questions About Company Formation in Turkey

Can a foreigner establis a company Turkey?

  Yes. Foreign entrepreneurs can establish acompanies  in Turkey. Foreign  investors and Turkish citizens have the same rights to business activities in Turkey.

       Turkey supports all foreign entrepreneurs from all contries.

What is the minimum capital to establish a company in Turkey?

           Capital requirements vary depending on the type of company in Turkey. The capital obligations of limited companies and joint stock companies are as follows.

        Limited libality company can establishing within minimum capital is 50.000 TL.  There is no requirement to block this capital in a bank account in first step. In other words the capital fee is only included in the articles of association when company establishing.  After company establish you can open a bank account for the company. And you can put the company capital into the company's bank account in two years.

       Joint stock company can establishing within minimum capital 250.000 TL.  At least twenty-five percent of the capital have to be ready and blocked in the bank when company establishing.

How a legal entity (company) registered in another country establish a company in Turkey?

Legal entities can company formaiton in Turkey.

    To establish a company as a legal entity, all official documents are required within notarized and apostilled of legal entity.  In countries where apostille approval do not be made,  embassy of the Republic of Turkey is confirming documents as alternative.

  In addition, a real person representative is reqired appointed to complete the transactions in Turkey. The real person can be a citizen of any country.

       Company formaiton of legal entity legall process is little morethan a real person  in Turkey.  And the company's formation charges are a bit high.

     So, it is very important to work with an experienced team for company establih of legal entity in Turkey.

How much company establishment cost in Turkey 2024? 

    The charges encountered in Turkey are as follows to company formation; Chamber of commerce charges, notary charges, translator fees and company formation service fees.

1- Cahmber of commerce fees ;  These charges are paying to chamber of commerce.  It is determining according to on busines area, the company type, compny main contract and company capital.   How much the chamber of commerce government fees of company establish in Turkey in 2024 ? The total amount of the trade registry fees in Turkey start from 240$ around.

2- Notary charges;  Passport translation of founder, company manage signature circular, power of attorney for accountant. Notary charges are determining on criteria such as the number of documents and translation. You can think 230$

3- Company formation service fees: The company formation service fee is determining depending on the number of partners, business volume, volume of transactions to be carried out. Please ask for offer.

4- Virtual office service fee - If you need:  Virtual office service fees are determining within the scope of the requirements of the company.

Citizens of which countries can establish company in Turkey?

     There is no any restrictions on a country basis to set up company in Turkey. Citizens of all country can set up a company in Turkey.

     On the other hand ; In some special and strategic business's, special regulations and permits may be required for foreign people.  Some examples of business with special regulations for foreign entrepreneurs are; we can list the health area, pharmaceutical area, banking & finance area and private security sector.

 Can foreigners open a bank account in Turkey?

             There is no any legal restrictions on opening a bank account for a company to be registered in Turkey.  Foreigners can open a bank account for their company after company formation proecess finish.

      There are more than fourty banks established in Turkey. Some banks may not be very willing to open accounts for foreign investors due to their own internal rules. Or bank workers may not be very willing due to communication problems with foreign firms who do not speak Turkish.

      For this reason, our advice, to choose benches where there will be no problems with communication.

      Which documents necessary to open bank account in Turkey?  Official registered documents, signature circular of manager, company stamp.  We are preparing all official documents after the company establish.

How many days does it take to company formation in Turkey?

     Company formation process in Turkey is completed in  three or four business days around. 

    A team dynamic in these matters will complete the set up of your company in the shortest time and in a healthy way. For this reason, it is important to find the correct address to receive service.

     You can always contact us to establish your company quickly and smoothly.

 Is it necessary to be in Turkey to establish a company in Turkey?

  If you be in Turkey company formation process more easy. And all process is complete in three business day.  But it is not compulsory to be personally in Turkey to set up a company in Turkey. If you send the necessary documents, a company can be formation in Turkey with a power of attorney.

      On the other hand, set up a company without being personally in Turkey takes a little longer and charges a little more.

        To company formatiton without being personally in Turkey, the documents you need to obtain in your own country and send to us are as follows;

1- Passport - Notarized. And aposstilled.

2- Power of attorney for company formation - Notarized. And apostilled.

3- Two phot - Background white.

    Documents have to be obtained from the notary in your country. And also apostille confirmation must be do. If there is no apostille in your country,  you can alternatively have it approved by the embassy of the Republic of Turkey.

     As an advice; The fastest and most low cost way to establish a company in Turkey is for the founder to come to Turkey himself.  If you come our office with your passport enough. We are doing all process in few days.

How much the monthly expenses of a company in Turkey?

     A company established in Turkey will have fixed expenses every month. These costs are approximately:

1- Stamp tax on VAT table – 308,80 TL around. every month

2- Stamp tax on income tax table - 620 TL around. every three months

3- Withholding tax -Stoppage table - 1.150 TL around. every three months

4- Accounting service charge - every month

5- Virtual office service charge - every month

6- Approval expenses of company accounting books - once a year.

Is it mandatory to work with an accountant to establish a company in Turkey?

    Yes. Forein investors should do accounting service agreement witj an licenced accountant minimum one year to establish a company in Turkey. This is a legal required.

      Company accounting process must doing every month. Company tax declerations must preparing everymonth and send to tax office. Even if company don't have any business activites, accountant should do these process.

     If tax declerations are not preparing everymonth by accountant, there is financial penalthy every month.

      On the other hand ; An expert and experienced accountant will help you every time. Accountant will protect your business for financial risks.

How much is the monthly accounting fee for a company registered in Turkey?

      Accounting fees is determing by ministry of finance of the republic of Turkey every year.  Istanbul chamber of certified public accountants is publishing legal accounting fee for Istanbul every year.  Istanbul chamber of certified public accountants established by law. And all accountants are connected this union.

    Accounting fees published by Istanbul chamber of certified public accountantsare minimum fees. According to the fee schedule published in 2024, the accounting fee of a limited company is around $110 per month.

       On the other hand, to determine the net monthly accounting fee, criteria such as the needs of the company, the number of monthly invoices, the number of workers, and transaction volume are taken into account.

Is a Turkish citizen partner mandatory to establish a company in Turkey?

    You don't need a Turkish partner to establish company in Turkey.  Foreigners can establish company themself without a Turkish partner. And they can be legal representative of company.

Is a work permit required to start a business in Turkey?

      In commercial rules, a passport is sufficient for a foreign entrepreneur to establish a company. After the company is established, according to the law, the company is registered in Turkey and acquires a legal personality separate from the owner.

     The company, which is a separate person, can engage in business activities. It can do business. Can buy and sell goods. And company owner can manage company.

Is a residence permit required to establish a company in Turkey?

Residence permit is not required to establish a company and carry out commercial activities.

Residence permit is necessary for live in Turkey. If you want to live in Turkey you should get residence permit.  If you do not live in Turkey there is no need.

Can foreign entrepreneurs who establish a company in Turkey become representatives of the company?

Yes. There is no legal restriction for this.

Can foreigners establish a single-partner company in Turkey?

  Yes. One person can establish a limited liability company in Turkey. Foreign investors can also establish a single-partner company in Turkey.

Which is the best city to establish a company in Turkey?

When evaluated according to criteria such as job opportunities, population density and qualified workforce supply, we can count cities such as Istanbul, Ankara, Izmir, Bursa, Antalya, Gaziantep, Konya and Adana among the prominent cities in Turkey.

Among these cities, Istanbul is the largest city in Turkey. With its population approaching twenty million, three airports, many ports and railway networks, it offers great opportunities to entrepreneurs in terms of business opportunities.

Istanbul, a cosmopolitan metropolis, is the most preferred city for foreign entrepreneurs to do business in Turkey.

You can always contact us to complete your company establishment process in Turkey smoothly and safely.

Tag; company, business, start, formation, establishment, Turkey, company formation in Turkey, start a business in Turkey, start a business in Turkey as a foreigner