This article will explain to you how companies are registered in Turkey, is it possible to establish a company in Turkey without a residence permit? Why is the company registered in Turkey? What are the benefits of investing in Turkey? What documents are required to register a company in Turkey? What is the cost of registering a company in Turkey? What are the rules for registering a company in 2020?
Investing has always been a risky and important business, but if it comes to registering a company in another country, it is definitely worthwhile to carefully consider all issues and costs and then make a decision, you can reach a conclusion in this area by reading this article and making the best decision for you.
About company registration in Turkey:
There is no doubt that the increasing international competition in the world plays an important role in deciding the establishment of companies and foreign investments.
In this regard, Turkey is very suitable for encouraging the establishment of companies, investment and the pursuit of globalization, and the legal plans in the formation of companies in Turkey.
Cities in which companies were established and their number in Turkey 2020:
- The number of foreign companies in Istanbul: 7567
- Number of foreign companies in Mersin: 593
- Number of foreign companies, Judge Gaziantep: 534
- Number of foreign companies in Hatay: 525
- Number of exchange firms: 498
- Number of foreign companies in Antalya: 46
Important points before investing in order to establish a company in Turkey:
Before forming a company in a field or region, we must examine its economic conditions well, the Turkish economy is a mixture of local and industrial industries that are increasing in size every day, and it is interesting to know that the American intelligence classified Turkey among the developed countries, and in the latest classifications, Turkey was from Among the 20 countries known for being leaders in the industry, agriculture, various industries, communications, construction, tourism, financial and banking services are among the most important areas of economic activity in which Turkey has achieved good results in recent years. Of course, we should not ignore the current developments in the Turkish economy, which have caused the decline in the value of the Turkish lira against the US dollar, but we can rest because the government has a precise and practical plan to solve this problem, and it should be noted that investment laws and establishing companies in this country are easier.
Why to establish a company in Turkey?
For us, this question can have different answers than others’ answers, Turkey is a country that has seen tremendous economic growth over the years and it can be invested with confidence in its political and economic stability, but with some slight differences, you also do not need to reside in Turkey to register a company in Turkey, After five years of extension, you will receive permanent residency.
The basic steps for registering a company in Turkey:
- Company registration in Turkey
- Company registration process in Turkey
- Locate the company
- Set the articles of association of the company
- Receiving company registration forms in Turkey
- Obtaining a tax number from the Turkish Treasury
- Obtaining approval for the articles of association of the company from the official office of Turkey
- Company registration in the Turkish Chamber of Commerce
- Print the official gazette
- Obtaining the power of attorney confirmation and signature form from the official office of Turkey
- Processing of the Turkish Treasury Form
- Refer to the Turkish Finance Office and submit the previous step form to review and approve this form and the address of the company’s office by this office
- Treasury inspectors will come to your address to confirm the address
- Obtaining the company tax number after the final approval and review
- Obtaining a business card
- Certification of accounting firms
- Open a company bank account
- Provide a formal financial advisor
These are all the aforementioned steps to establish the company in Turkey and it can be completed in just 5 working days.
Documents required to register a company in Turkey:
- Original passport of each partner (valid for more than 6 months)
- Two 4 * 3 size photos (color with light background)
- Several names suitable for the company
- The company’s field of activity in Turkey (articles of association)
- Determine the percentage of shares of each of the company’s partners
- Appointing the company director (or both partners)
Types of company registration in Turkey:
Like the followed laws for establishing a company in every country, there are several types of companies in Turkey, and each company and its law and conditions are explained below:
Limited liability company:
This type of company must be registered and established with a minimum of one person and a maximum of 55 people, the fees required to register and establish a limited liability company are $ 2,100 (two accounts are opened in foreign currency, one in the name of the company and the other in the name of the company’s manager) and according to the rules, the profit and loss of each shareholder is approved, based on the amount of this real or legal person’s share, and in the event of the company’s bankruptcy, the creditor may only claim the amount of the company’s shares and not more than that the managers of this type of companies can be Turkish citizens, foreign citizens, and even according to the articles of association of the company from persons other than the shareholders of the company.
We have two types of joint-stock companies in Turkey, companies with less than 250 investors, and it is called a private joint stock company, and the cost of establishing and registering it is about 2,800 USD, as well as companies with more than 250 investors, called public joint-stock companies, shares in joint stock companies are equal, but each shareholder can buy the largest possible number of shares, and the amount of profit and loss for each shareholder is calculated according to the amount of these shares, and according to Turkish law, representatives of the Ministry of Trade must attend the general meeting of this company.
Incorporation of mixed companies:
In this type of company, one or more shareholders (excluding real persons) bear the debts and debts of the company, and the remaining shareholders are only responsible for the amount of their initial capital.
There is an important point about establishing this type of company, which is that in the event that there are debts and debts to this company, each partner is responsible and obligated to pay them, even if the amount of these debts is greater than the total capital and the value of the company.
Financial institutions (exchange):
This type of economic project is considered a joint-stock company, with the difference that in order to register and establish it, it is necessary to obtain the necessary licenses from the competent authorities, and the registration of this type of company faces difficulties and complications that require speaking to a lawyer with experience in this field.
Participation in the Turkish free zones:
It must be said that this type of company establishment is intended for those who produce goods, in fact, what is considered an industrial activity is that you can buy land in the areas that are offered to you at a reasonable price with appropriate facilities, and it is beneficial for the Turkish government to build a shed in that area, It is interesting to know that Turkey provides you with exceptional facilities for employing employees and workers in this field, including insurance and tax exemptions.
Benefits of registering a company in Turkey:
- Doing business without the restrictions that exist for Iranian individuals and legal entities
- Work and invest in a context where there is room for international growth and success
- Taxes in Turkey are much lower than in Europe and the United States
- Low start-up costs
- The presence of special registration facilities for foreign companies in Turkey
- You pay less for living than other European countries
- You get a residence permit for one year in Turkey, and after 5 years you will get permanent residence
- After establishing the company, you can get a bank account and get a credit and debit card
In some cases, it has been observed that someone registered and established a company in Turkey in order to obtain a residence permit in Turkey, but it must be emphasized that this is one of the most difficult and expensive ways to obtain a residence permit in Turkey, we suggest to do this is to read and learn about other ways to obtain a residence permit in Turkey here.
Frequently Asked Question:
What capital is required to register a company in Turkey?
The registered capital of the LLC should not be less than 10,000 TL.
The capital of the anonymous company should not be less than 50,000 TL.
However, there is no specified minimum capital required to establish a collective limited partnership.