A Guide On How to Open a Company in Turkey 

Turkey offers an excellent location for an entrepreneur to venture due to the location, developing economy, and pro-investor policy. The country offers several models of company, one suited to various demands of the business. Knowing the type of firms one could register, registration, and law requirements are essential steps toward commencing an operation in Turkey.

1. Understanding the Types of Companies in Turkey

When commencing an operation in Turkey, it is essential to select the best form of organization. A majority of firms fall under one of the three fundamental categories:

An A Limited Liability Company (LLC), also known as “Limited Şirketi” (LTD), best suited little and middle-scale firms. It has one shareholder, minimum, minimum capitalization of 10,000 TL. Shareholders’ liability capped by invested money. The organization has simplified management system, has less regulation, less paperwork, easy to implement.

An Anonim Şirketi (A.Ş.), also known as a Joint Stock Company, best suited bigger firms. An LLC does not permit one to offer publicly issued shares, while an A.Ş. has minimum capitalization of 50,000 TL. An A.Ş. also has many owners, easy changeable ownership system, offers publicly listing, best option suited firms aiming to develop significantly.

An A Gerçek Kişi Ticari Teşebbüsü, also known as Sole Proprietorship, has least form organization, whereby one single entity has full ownership. An A Gerçek Kişi Ticari Teşebbüsü has easy way out, best suited little firms, but does not offer liability coverage. Proprietor has full liability over obligations, including debt.

A Branch Office allows foreign companies to achieve an entry into the Turkish market without establishing an entity. It acts as an extension of the parent entity and does not carry liability separately. It acts for firms desiring entry into the Turkish market while not full incorporation.

Liaison Office acts as other foreign investors, whereby it allows them to carry out surveys of the markets, develop relations, but not carry out any commercial transactions. Although it does not generate revenue, it acts as an efficient first move by firms desiring entry into Turkey.

2. Steps to Open a Company in Turkey

Organizing an organization takes several steps so it fulfills financial and legal requirements.

A. Choose a Business Structure

Choosing the best form of company, subject to organization, liability, and scope of the investment, comes first. Entrepreneurs must decide whether an LLC, JSC, or any other form best fits them.

B. Prepare the Necessary Documents

Company registration takes several documents, whereby these need get submitted. These documents involve the Articles of Association, notarized passport copies (for foreign investors), proof of address (for registration by the company), signature declarations by empowered persons, tax identification numbers by all the shareholders, and other documents. Admissible documents are necessary so registration does not get delayed.

C. Register the Company with MERSIS (Central Registry System)

Following drawing documents, company data must get uploaded into the computer system by MERSIS. The central register involves the company, maintaining records thereof.

D. Open a Bank Account and Deposit Capital

A company has to open bank account in Turkey so that initial deposit of capital could be deposited. LLCs have to deposit minimum 25%, while JSCs have to deposit minimum depositing 50,000 TL, similarly. Reason thereof lies in financial transparency, as well as law abidance.

E. Obtain a Tax Number and Register with the Tax Office

After registration by the company with MERSIS, businessmen need to obtain tax number from local tax bureau. The tax number must by financial transactions relating to the company, including bank account opening by the company, also while signing contracts.

F. Register with the Trade Registry Office

Company has to register lawfully by Trade Office relevant. It includes submitting documents, whereby company receives registration certificate, insertion in Trade Registry Gazette, creating legal personality.

G. Social Security Registration and Employee Insurance

If the company has personnel, it has to register Social Security Institution (SGK). The employers need to provide insurance health, besides complying labour law norms, prescribing employee rights, compensation, as well as benefits.

H. Obtain Licenses and Permits (if required)

If any, other permits, licenses, depending upon trade, also need to be taken. Food, healthcare, finance sectors, for example, need specialized permits so that trade could be conducted lawfully by Turkey.

3. Taxation and Financial Obligations

It is very necessary that businessmen, while conducting trade, understand taxation. Companies have various taxes, including:

• Corporate Income Tax: A standard rate of 25% applies to corporate earnings.
• Value Added Tax (VAT): Depending on the type of goods or services provided, VAT ranges from 1% to 20%.
• Withholding Tax: A tax on dividends, rent, and employee salaries may apply, depending on business activities.
• Annual Reporting: Companies must submit financial statements annually to tax authorities to ensure compliance.

4. Hiring Employees in Turkey

If you wish people work, you must meet the law of Turkey, including:

• Registering employees with SGK to provide healthcare and pension benefits.
• Obtaining work permits for foreign workers before employment.
• Complying with national minimum wage regulations and fair employment practices.

5. Advantages of Starting a Business in Turkey

Turkey has several benefits if one wishes to start one’s venture:

• Strategic Location: Positioned between Europe and Asia, Turkey provides access to major markets.
• Growing Economy: Turkey’s expanding economy presents opportunities in multiple industries.
• Government Incentives: The government offers investment incentives such as tax breaks, grants, and subsidies.
• Strong Infrastructure: The country boasts advanced transport, communication, and technological infrastructure.

It requires careful thinking and due diligence while setting one’s venture. Entrepreneurs must choose the suitable form, submit documents, and meet financial, labour, and other obligations. Due to the friendly environment, it still attracts an investor, if one knows the law, steps, and details. Business owners need only understand the legal system, steps, and details, so setting up and establishing one’s venture proves easy.