Company registration in Turkey brings significant details for you. Join us today as the real estate consultants of Deluxe Homes Alanya to achieve the desired result faster.
We want to read together and understand how to start our own business in this country with full knowledge of the company opening process. A business that is 100% in your hands and there is no need to partner with a Turkish person
One of the questions that we have to answer is whether our goal of establishing the company in question is business relations or whether we only intend to receive Turkish citizenship.
In the past years, registering a company in Turkey was a quick and easy process, but with the passage of time and the choice of Turkey by immigrants to register a company and obtain a passport, this process became difficult and took longer.
Benefits of company registration in Turkey
- Obtaining a passport and permanent residence in Turkey
- Opening an international account and financial transactions
- Ability to get bank loans
- Lower tax rate compared to European and American countries
One of the best advantages is that you don’t need to buy an office to register a company in Turkey and you can continue your business at home.
Company registration procedures in Turkey
- Preparation of documents and official translation into Turkish
- Drafting of articles of association and forms required for company registration
- Determining the address of the company
- Receive a tax code from the Finance Department
- Approval of the statutes in the office of the official house
- Refer to the commercial office to register the company
- Confirmation of the sample signature and power of attorney in the home office
- Visiting and confirming the property inspectors of the company’s address
- Obtaining a tax number after confirming the address
- Obtaining a business card
- Acknowledgment of the accounting office
- Opening a bank account for the company
- Introducing the company’s accountant and financial advisor
Hiring an accountant (or in Turkish: muhasebeci) is mandatory for establishing a company in Turkey. This accountant must be a citizen of Turkey and a foreign accountant cannot be used. An accountant can also do the work of a financial consultant for you, and you can hire an accountant after going through the initial stages of establishing the company.
The time required to register a company depends on the finance department of the city in question and the day the procedures start, it takes between 10 days and 1 month, people need legal knowledge of this country to register a company. We advise you to get help from experienced people to complete the steps.
The cost required to register a company in Turkey
- The initial capital of the company is 10,000 liras
- The accounting fee is usually $120 per month
- The cost of renting the premises of the company depends on the size and address
- Cost of water, electricity, telephone, internet
- 23% tax on office rent, annual fee paid in official offices is $400
- Tax on the company’s net income is 22%.
Documents required for company registration in Turkey
- The original passport of each partner is valid for more than 6 months.
- Two pieces of 4 x 3 color photos with light background
- Suggest some suitable names for the company
- The field of activity of the company in Turkey or the same statute
- Determining the exact share percentage of each of the company’s partners
- Designation of company manager or both partners
Types of companies that can be established in Turkey
You can register seven types of companies in Turkey. Among these seven types of companies, two anonymous and limited companies are the most used. To establish a company in Turkey, between 0 and 100 thousand Turkish lire is required. According to Turkish laws, starting any business in this country requires company registration.
Private companies bear only the name of the whole mechanism of a company. These companies only receive a tax number to pay their income tax to the government. Private companies do not need a letter of foundation and inclusion in the official newspaper. Of course, note that you cannot get a Turkish residence or passport by registering a private company. Therefore, the registration of these companies is economical and useful only for Turkish citizens.
Limited Liability Company (Limited)
A limited liability company can be registered in Turkey with a minimum of two and a maximum of 50 partners (according to the new law, a limited liability company can be registered even with one shareholder). The minimum capital for the establishment of a limited liability company is 10,000 liras and any change and any transfer of the shares of the partners must be done in the official office. Of course, it should be noted that if the applicant intends to obtain residency, the capital of the company must be 100,000 liras and according to the law, 25% of the capital of the company must be available in the company’s account, which can be withdrawn after the completion of the registration process and receipt of the official gazette.
Joint stock company (private-public)
The establishment of this type of company requires at least 5 natural or legal persons. Partners are responsible for the debts and liabilities of the company according to their share. In joint-stock companies, the capital must be divided into equal parts, and each part of the division is called a share. It is not necessary that each of the partners have a certain amount of shares, but each partner can buy shares in any amount he wants. According to the Turkish Trade Law, the general assembly meetings must be held with the presence of representatives from the Turkish Ministry of Commerce. Joint-stock companies are divided into two types:
Private limited company: There are companies with less than 250 shareholders.
Public company: There are companies whose number of shareholders is more than 250 people.
It is a company that is formed under a special name between two or more natural persons with joint liability, and if the company’s assets are not enough to pay all the company’s debts, each of the partners is responsible for paying all the debts.
In this type of company, one or more people are partners, guarantors of all debts and shares of the company, and other partners are responsible for the company’s debt only in proportion to their capital in the company. Legal entities cannot be among the guarantor partners. The most logical and preferred types of companies in Turkey are the limited liability company and the private limited company.
Collective companies are companies that are established by two partners who must be natural persons. Both partners have the right to manage the company separately. Both partners have responsibilities, and the management work may be delegated to one or more partners according to the articles of association or the majority of partners. These partners have second-degree unlimited liability toward the creditors of the company. In addition, there is no capital requirement for a joint venture. Collective companies are regulated according to Article 124 of the Turkish Commercial Law. A joint venture is a type of company. It acquires a legal personality by registering in the Trade Registration Office. At the time of the establishment of the collective company, at least the name and surname of one of the partners must be mentioned in the business title to show the company and its type. The company must be registered with the Chamber of Commerce and Industry of the region where the company is established. After the establishment of the collective company, it must be announced in the trade register newspaper. Tax office transactions and SSI records must be done.
Most of the companies founded by foreigners belong to the limited liability group
Company registration rules in Turkey for foreign nationals
According to the old company registration rules in Turkey, the applicant can register the company if he must hire a Turkish citizen. But according to the new laws that have been established for company registration, foreign nationals can register a company in Turkey without hiring Turkish citizens. In this way, foreigners can own 100% of their company, and this is a great advantage for investors. Companies that are registered in Turkey can operate and earn money according to the laws of Turkey. Turkey is a very legal country in the field of registration and legal affairs and is strict in the implementation of legal regulations and takes legal action against people who do not comply with these laws.
But this law is different for company employees.
If the head of the company decides to hire an employee for his company, he must start with Turkish citizens because he cannot hire a foreign employee except for hiring one foreign employee for 5 Turkish citizens.
Company registration rules in free zones of Turkey
In Turkey, there are 21 commercial and industrial free zones, and registering a company in these zones has many advantages, and for this reason, these zones have a special attraction for investors, which can be mentioned as having strong infrastructure facilities and various legal and financial exemptions.
Incomes from companies in free zones will be exempt from income tax.
Exemption from customs duties and value-added tax for goods and raw materials that enter free zones from other countries.
The possibility of long-term presence in the free and commercial zones of Turkey
Ready-made commercial and administrative units in the free zones of Turkey are leased for 10 years for commercial activities and 20 years for production activities, but if the investor starts construction, the lease contract is for 20-year commercial activities and for production activities He will be 30 years old. The contracts can be extended up to 99 years, which can be extended by referring to the relevant organizations.
Cash transfer in Turkey
The income from businesses and companies established in free zones can easily be transferred to Turkey and other countries and does not require a special license to transfer.
The existing infrastructures in these areas are very advanced in Turkey and are available to investors with minimal bureaucracy and administrative procedures. Most of these areas are located in the big ports of Turkey, where sea transportation is also possible.
Foreign direct investment law for company registration in Turkey
This law contains 7 articles and an executive regulation. This law also contains 4 sections and 13 articles. In the third article of this law, the principles of foreign direct investment are as follows.
Freedom of investment and internal transactions
Foreign investors are free to invest directly in Turkey or do business with domestic investors.
Expropriation and confiscation of property
The property of foreign investors will not be expropriated or confiscated except in cases of public interest, in which case the loss will be compensated.
Removal of Property
Investors are completely free to withdraw their capital and property from Turkey and it is completely legal.
Real estate ownership in Turkey
Foreign investors do not have any obstacles or restrictions for owning real estate in Turkey and they can do it easily.
Dispute resolution in investment law
If a dispute or problem happens to the investor, he can refer to the court and legal authorities.
Valuation of non-cash capital
Non-cash assets are valued according to Turkish commercial laws.
Hiring foreign employees
Foreign companies subject to this law can hire foreign nationals who have been approved by the Ministry of Labor.
Opening of the representative office
Foreign companies are allowed to open their representative offices according to the law.
Company registration and tax payment
In recent years, the rate of company registration in Turkey by foreigners has improved, remember that the payment of corporate tax is done by the tax code and before anything else, you must get the tax code.
Tax procedures for company registration
There are many tax laws in Turkey that cover many things and remember that Turkey, like Iran, receives an amount as a tax. Of course, there is no way to avoid taxes in this country.
If you intend to buy and sell a property or a car, you must pay an amount as a tax to Turkey, you must note that the tax rate in Turkey is not fixed for everyone.
In Turkey, companies are also required to pay taxes, that’s why you should pay attention to the description of company registration tax. In Turkey, companies are registered under different titles.
The first point that you should pay attention to before pursuing the tax procedures of company registration in Turkey is the amount of income because the income has a direct relationship with the tax rate paid.
Keep in mind that the tax rate can vary from 15 to 40 percent, so a tax rate is determined for each income rate, and it should be noted that the amount of declared salaries is annual. Let’s start with the lowest income level.
Companies whose income is 24,000 Turkish Liras are taxed at 15%, 24,000 to 53,000 Turkish Liras 20%, 53,000 to 190,000 Turkish Liras 27%, from 190 to 650,000 Turkish Liras, 35%, and finally more than 650,000 Turkish Liras. 40% tax is charged.
Exemption from paying tax or tax discount
Keep in mind that sometimes it will be possible for you to benefit from a 5% tax discount while going through the tax procedures of company registration in Turkey. Of course, in order to receive this discount, you must meet the conditions, which include submitting a tax return within the legal deadline. Also, the company tax must have been paid on time in the last two years. Another condition that you must meet in order to receive a 5% discount while going through the tax procedures of company registration in Turkey is the absence of additional taxes.
So that no additional tax has been considered for you in the last two years. Also, you should not have any outstanding tax debt and pay your taxes on time. One of the parts that you should pay attention to while going through the tax procedures of registering a company in Turkey is the parts of the income that give you the opportunity will give so that you don’t pay tax for them.
For example, when you keep 75% of the profit from the sale of partnership shares and other things that will be told to you during the tax procedures of company registration in Turkey for two years, you can get a 5% tax discount. Take advantage during company registration. Of course, keep in mind that you can benefit from this discount if you keep 50% of the profit from the sale of your real estate in the company’s bank account for two years.
How to get a tax code for the tax procedures of company registration
As mentioned, the tax code helps you to buy and sell easily. Other uses of this code include opening a bank account.
The tax code is a 10-digit code that is given to foreigners by the Turkish government, and if we want to explain in general, the tax code is just like the national code, through which the government can access all of our personal information.
To get the tax code, online and in-person methods are suggested
People who have lived in Turkey can go to the tax office in person and receive their tax code by handing over a series of documents.
documents including a passport or if they have received a residence card (Kimlik).
And if the person does not reside in Turkey, he can get the tax code by referring to the Turkish government website and entering the section of the tax office, and uploading his documents.
But we must remember that the tax code is personal and should not be sent to anyone except government offices
Note that you can contact Deluxe Real Estate experts for more information or advice on company registration.
Call 00905538612234 for a free WhatsApp consultation.