INVEST IN TURKEY

I Want to Establish My Own Company

According to the Foreign Direct Investment Law No: 4875, foreign investors are responsible for the same rules as Turkish citizens. Foreign investors have the right to open and be a shareholder in any type of company in Turkey. There are some steps to follow to invest in Turkey.

Steps to Follow

Get a Location For Your Company

Real Location

There are a variety of choices in Turkey to get a real location for your company. Depends on your type of business, foreign investors are able to get their real location for their company.

Virtual Location

The virtual location option is also the choice for any investors as foreign investors. Virtual office meaning legal address but not a real place for your business.

Capital of Your Company

Turkish law deals with your company according to your company’s capital. The minimum amount of your company’s capital should be 10.000 Turkish Liras for limited liability company. Please check “Type of company you want to establish” to get more information

Which Documents Do I Need?

The necessary documents for registering a company in Turkey must be notarized and consists in 3 copies and the original of the articles of association, 2 copies of the signature documents, 2 copies of the identification documents of the firm managers, one copy of the passport for each foreign shareholder and 3 copies of a notification form of establishment. Other requirements are the original receipt from the Ziraat Bankasi, proving that the 0,04% from the capital were deposited the Competition Authority, the certificate of deposit of the minimum capital. For tax reasons, the company has to submit the certificate of registration, which will contain the tax number.

Type of Company You Want to Establish to Invest in Turkey

Private Company

Private Company is the easiest way to open your own company due to bureaucratic and commercial concerns. After you hold a tax number, you are able to establish your own private company.

Limited Company

A Turkish LTD (limited liability company) is formed by at least one shareholder with a share capital of minimum 10.000 TL. The minimum share capital has to be deposited at once, installments are not allowed. The total number of shareholders cannot be above 50. The management of a limited liability company may be assured by a manager or a council of managers, which may not be shareholders of the company. The obligation of keeping a website was recently introduced for the limited liability companies by the New Commercial Code.

Commandite Company

It’s a commercial company formed by commanditers (legal members with limitation of liabilities determined by their subscribed capital) and unlimited members. There is no necessity to subscribe a minimum share capital for this type of business.

Joint-Stock Company

The A.S (joint-stock company) requires one shareholder at least to open or/and close. The closed joint-stock company must provide a minimum share capital of 50.000 TL and the open joint-stock company must provide a minimum share capital of 50.000 TL and registered capital of 100.000 TL. The open joint-stock companies may offer its shares to the public, by registering it to the stock market, unlike the closed joint-stock companies. All the shares of the joint-stock company may be in cash or kind and must have a nominal value (of minimum 1 KR).

Other Cases To Be Concerned

Tax Opportunities

Turkey has specific regions and cities where government support to invest in. Such as the Southeast Anatolia region, where the billing costs are cheaper than other regions in Turkey.

Billing Opportunities

Turkish government supports developing regions to get more investment. Some districts in Istanbul including this case.

Main Costs Opportunities( renting, building etc.)

This case is more related with your interests and your sector at the same time. Real Estate sector in different destinations might be change in terms of costs.

Internet Infrastructure Opportunities

Due to the different municipalities and geographic conditions, internet infrastructure might have disparities than others. If your interest is IT sector, might be careful to choose the best destination for your office.

Shipping Opportunities

There are 5500 ports in the World, and Turkey has 180 which equivalent 3% of all ports in the World. There are 27 larger ports in different destinations of the country. 5 ports among 27 take 46% of all shippings. Here are some graphs to detail more;

Networking Opportunities According To The Sectors

This case is more about city decision for your company. Choosing the city where are chosen for EXPO for your sector and beneficent for your interests might be the best plan for your company’s future.

Free Trade Zones in Turkey

Turkey has 18 Free-Trade Zones

Monetary Advantages

Exemption from corporate income tax: Manufacturing companies are 100% exempt from corporate tax over their profits (the regular corporate tax rate in Turkey is 20%)
Free transfer of profits: profits generated at free zone can be transferred to Turkey or to other countries without the need for any permission
Income tax exemption over salaries: Manufacturing companies are 100% exempt from income tax over the salaries of their employees if they sell minimum 85% of their production abroad (the regular income tax rate over salaries in Turkey is between 15% to 35%)

Customs-Related Exemptions & Benefits

Since free zones are legally outside the customs borders of Turkey, custom related taxes and regulations are not applicable to goods entering the zones (Value-Added Tax (VAT), customs duties, Resource Utilization Support Fund tax (RUSF, normally 6%)
Companies can decrease their costs by keeping their stocks in a tax-free environment and/or basing their re-exports, transit trade, packaging, labeling and other similar operations within free trade zones.

One Stop Service

2nd hand machinery can be imported freely in to FTZs with no age limitation
Free circulation of goods within the EU Market
Lower construction and infrastructure service costs (exempt from VAT)
100% foreign investment is allowed, without any requirement for minimum capital
Bookkeeping and accounting can be done in foreign currency
Sales to domestic market is allowed
Easy to get work permits for expatriate employees
Stocks can be kept in FTZsduty-free for an unlimited period of time