Establishing a company in Turkey offers a wealth of opportunities, but it also involves a series of essential steps and costs. This guide provides a comprehensive overview of the necessary services and fees involved in starting a business in Turkey.
Unlock the Potential of Your Business in Turkey
Turkey, with its rapidly growing economy, strategic location, and youthful population, presents an attractive landscape for entrepreneurs. However, navigating the complexities of establishing a business can be challenging. This article aims to break down the process into manageable steps, detailing the services and costs you need to consider when setting up your company.
Navigating the Process of Establishing a Company in Turkey
1. Choose Your Company Type:
The first step in establishing a company is selecting a legal structure. The most common types in Turkey include:
• Limited Liability Companies (LLC)
• Joint Stock Companies
• Partnerships
Each type has distinct legal requirements that must be fulfilled.
2. Register with the Turkish Trade Registry:
To officially establish your company, you must register with the Turkish Trade Registry. This process requires the submission of several documents, including:
• Articles of Association
• A list of shareholders
• A list of directors
Additionally, a registration fee must be paid.
3. Obtain a Tax Number:
Following registration, you will need to obtain a tax identification number from the Turkish Tax Office. This number is essential for tax-related matters.
4. Secure a Business License:
All businesses operating in Turkey must obtain a business license from the local municipality. This license is mandatory for all business activities and must be renewed annually.
5. Open a Bank Account:
A corporate bank account is necessary for conducting financial transactions, including paying taxes and salaries. To open an account, you’ll need to present various documents, including:
• Articles of Association
• Proof of registered address
• Business license
6. Obtain Work Permits:
If you plan to hire foreign employees, securing work permits is crucial. This process involves submitting various documents, including:
• The employee’s passport
• Company’s Articles of Association
The Costs Involved in Establishing a Company in Turkey
Establishing a company incurs several costs, which can vary based on the type of business and specific services required. Here’s a breakdown of expected expenses:
• Registration Fees: Varies depending on the company type, typically ranging from a few hundred to several thousand Turkish lira.
• Business License Fees: These can also range from hundreds to thousands of Turkish lira, depending on the business activity.
• Tax Identification Number: Similar to registration fees, the costs can vary.
• Work Permit Fees: Required for foreign employees, costs range widely based on the business type.
• Residence Permit Fees: Necessary for foreign nationals wishing to live in Turkey.
Understanding the Tax Implications
When establishing a company in Turkey, it’s crucial to understand the tax landscape:
• Corporate Tax Rate: The standard corporate tax rate is 20%, while foreign companies face a rate of 22%.
• Value-Added Tax (VAT): The standard VAT rate is 18%, with some exceptions for specific services.
• Social Security Contributions: Employers must contribute between 10% and 30% based on employee salaries.
• Withholding Tax: Applies to dividends, interest, and royalties, ranging from 10% to 30%.
Legal Requirements for Establishing a Company
Establishing a business in Turkey involves complying with various legal requirements governed by the Turkish Commercial Code and other regulations. Key legal obligations include:
• Choosing a legal form: (e.g., LLC, Joint Stock Company)
• Submitting necessary documents: To the Turkish Trade Registry and local authorities.
• Registering with the Turkish Social Security Institution: A requirement for all companies employing staff.
Q&A
What Are the Costs Associated With Establishing A Company In Turkey?
Costs include registration fees, notary fees, stamp duty, registration tax, and various permits, all of which can range from a few hundred to several thousand Turkish lira.
What Services Are Required To Establish A Company In Turkey?
Essential services include preparing Articles of Association, company registration, opening a bank account, and registering with tax and social security authorities.
How Long Does It Take To Establish A Company In Turkey?
Typically, the process takes between two to four weeks, depending on the company’s structure and complexity.
Conclusion
While establishing a company in Turkey can be complex, it offers rewarding opportunities for those who navigate the process correctly. Understanding the necessary services and associated costs is critical to ensuring a successful establishment. With the right support and resources, your business can thrive in Turkey’s dynamic market.
How to Start?
For more detailed information, contact us via phone or email. Workon offers free consulting support and a Turkish Business Starter Package to help you swiftly and successfully implement your entrepreneurial ideas in Turkey.
