Setting up a business in Turkey involves a number of legal requirements and procedures. Here are the basic steps involved in the process:
- Determine the type of business entity: The first step in setting up a business in Turkey is to determine the type of business entity you want to set up. The most common types of business entities in Turkey are a limited liability company, joint-stock company, branch office, or representative office.
- Choose a business name: The next step is to choose a unique business name and check its availability with the Turkish Trade Registry Office.
- Obtain a tax identification number: To start a business in Turkey, you need to obtain a tax identification number from the tax office.
- Register with the Trade Registry Office: Once you have chosen a business entity and a name, you need to register your business with the Trade Registry Office. You will need to submit the necessary documents, such as the articles of association, ID copies of the founders, and the tax identification number.
- Obtain necessary licenses and permits: Depending on the nature of your business, you may need to obtain licenses and permits from various government agencies, such as the Ministry of Industry and Commerce or the Ministry of Health.
- Open a bank account: After registering your business, you need to open a bank account in the name of your business.
- Register with the Chamber of Commerce: Finally, you need to register your business with the local Chamber of Commerce.
Setting up a business in Turkey requires careful planning, compliance with legal requirements, and patience, and it is highly recommended to seek the guidance of a local attorney or a business consultant who is knowledgeable and experienced in Turkish business law. At Turkinvest, we can provide invaluable assistance with navigating the complexities of the process and ensure that your business is set up properly, legally and in full compliance with the relevant laws and regulations. Additionally, we can offer valuable advice on matters such as tax obligations, employment laws, and licensing requirements, all of which can help you avoid costly mistakes and setbacks in the early stages of your business.
- What are the legal requirements for starting a business in Turkey?
Legal requirements for starting a business in Turkey can be listed as follows:
- Business name: The business name must not be identical or similar to any other registered company in Turkey.
- Shareholders: Minimum one shareholder is required to set up a limited liability company or joint-stock company.
- Capital: The minimum capital requirement for a limited liability company is currently 50,000 TL, while for a joint-stock company, it is 250,000 TL.
- Directors: Companies must have at least one director who can be either a Turkish or foreign national.
- Address: The company must have a registered address in Turkey.
- Tax number: All companies must have a tax number, which can be obtained from the tax office. This tax number will be used for all tax-related transactions.
- Trade Registry Office: The company must be registered with the Trade Registry Office.
- Social security: Companies must register with the Social Security Institution (SGK) and pay social security contributions.
- VAT registration: Companies must register for value-added tax (VAT) with the tax office.
- Licenses and permits: Depending on the type of business, additional licenses and permits may be required.
- How long does it take to set up a company in Turkey?
The time it takes to set up a company in Turkey depends on various factors, including the type of business entity, the complexity of the business, and the efficiency of the registration process. For instance, setting up a limited liability company (LLC) generally takes less time than a joint-stock company (JSC) because LLCs require fewer formalities. If all the required documents are submitted correctly and there are no complications or delays, the registration process can be completed within 1 week only.
It is important to note that the process of setting up a business in Turkey can be complex and time-consuming, especially for foreign entrepreneurs who are not familiar with the local regulations and procedures. However, it can also be expedited if you work with an experienced professional service provider who can guide you through the process, ensure you comply with all legal requirements and help you prepare all the required documents in advance.
