Setting Up a Business in Turkey
Setting up a business in Turkey is viable for foreign entrepreneurs who wish to invest and expand their businesses. Foreign investors widely prefer Turkey thanks to its strategic position in commerce with several world regions. Turkey’s economy and private sector are both dynamic and attracting foreign investors. Furthermore, the country’s growth in the economy provides a fantastic chance for investors.
Foreign entrepreneurs who want to start a business in Turkey and expand their business abroad need to complete some steps and meet requirements in the Turkish market. They need to carry out legal processes and local regulations.
It might be conducive and fast to get professional support in this regard. ERAI Turkey can support foreign investors who wish to expand their business and guide them throughout the business establishment process. The umbrella company offers professional help from its local specialists, experts in Turkish regulations and law. You can contact ERAI Turkey for further information and get tailor-made services.
HOW TO SET UP A BUSINESS IN TURKEY?
You need to follow and complete some essential steps to set up a business in Turkey. These steps are as follows:
- Potential Tax Number
A potential tax number will be required for all official operations. Obtaining a possible tax number from a tax office should be your initial action. It might be advantageous for you to get expert assistance from a business consultant at this point.
- Location of the Company
You will need your company’s legal address to set up a business in Turkey. Whether it is a virtual or actual office, you should identify a location for your company and rent it. During the rental process, you will need a prospective tax number, and you should pay the rent from your company’s bank account rather than your own.
- Type of the Corporation
Before starting a business in Turkey, you need to select the type of your corporation. Foreign investors can select between two types of corporations: a joint-stock company (JSC) and a limited liability company (LLC). A limited liability company would be the ideal alternative for small business operations. Forming a limited liability company would be quick, inexpensive, and straightforward.
- Accounting Outsourcing Company
All business owners need a reliable and professional partner in a foreign country. You will need an accounting outsourcer that will be your long-term business partner to handle all of the ins and outs of your business. On behalf of your company, your accounting firm will initiate the business creation process and prepare the master agreement, trade registration application for appointment, tax office documentation, and power of attorney processes.
- Registering the Company
Your accountant will apply for a trade register, a tax office, and other government authorities to register your business. It’ll take about three days to complete this process. You should take your company’s signature circular to the notary after receiving the trade registrar’s office documents. During the procedure, a sworn translator should also be present. You’ll need to provide your accountant power of attorney to act on your and your company’s behalf.
- Bank Account
Your organization will require a bank account to complete all of the financial requirements. Even though it is a simple procedure, you should know Turkish bank requirements and obtain assistance from your accountant.
REQUIRED DOCUMENTS TO OPEN A COMPANY IN TURKEY
Preparing the required documents to establish a business with the Trade Registrar is one of the most crucial procedures in starting a business in Turkey. The documents needed for opening a company in Turkey are:
- Articles of Association
- Signature documents
- Identification documents of the company managers
- Notification form of establishment
- The passport for each foreign shareholder
- The original receipt from a Turkish bank demonstrating that the 0.04 per cent of capital was deposited with the Competition Authority
- The certification of deposit of the minimum capital
- The certificate of registration that includes tax number
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WHAT ARE THE BENEFITS OF ESTABLISHING A BUSINESS IN TURKEY?
Turkey offers business owners who want to start a business numerous advantages and benefits such as:
- Incentives: The Turkish government offers an incentive program to foreign investors. This service will assist you in lowering your initial costs and efficiently accelerating your investment. The Ministry of Industry and Technology provides these incentives. Tax reductions, Low VAT rates, VAT refunds, and social security assistance are just a few of the Turkish government’s incentives.
- Turkish Citizenship: With the recently amended legislation, international investors who start up a business in Turkey now have citizenship rights. The law also reduced the time it took to complete these citizenship procedures, allowing them to be finished in less than three months. Most foreign investors are interested in this prospect since it offers numerous benefits.
- Low Operating Costs: For both local and foreign entrepreneurs, the low operating costs of starting a business in Turkey are crucial and tempting. Turkey’s suppliers, labour force, office rentals, and related services are relatively inexpensive.
- Equal Rights: To help finance the investments, the Turkish government has signed double taxation treaties with more than 80 countries. As a result, they will enjoy the same benefits as local investors regarding foreign investments in the country.
Setting up a business in Turkey is an appealing option for foreign investors who want to expand abroad. Business owners need professional support to complete the required steps correctly in this process. ERAI Turkey can provide this support with its local team and experts. You can contact ERAI Turkey for further information and its services for business formation in Turkey.