Time of establishment of the company
Turkey is the door to the three largest and most dynamic markets in the world: Europe, Asia and the Middle East. The economic boom and 34% growth between 2001 and 2004, as well as the current growth of 5% per annum, are therefore no surprise. Since the introduction of the Foreign Investment Law in Turkey in 2003, the number of companies has doubled and the economy is booming. Its integration into the global economy is partly due to manufacturing industry.
What to keep in mind
Turkey is an attractive location for various activities – it is conveniently located in the heart of a region that dynamically connects Europe with Asia: industrial processing, trade, hotels and gastronomy are the leading industries in Turkey.
What determines the attractiveness of Turkey?
The status of a regional superpower and belonging to another cultural circle has a positive impact on the simplicity of doing business in practice. In Turkey the business is conducted in a straightforward and usually very profitable manner.
Company registration procedure
Registration of the company:
Establishment of the company requires appearance at the Embassy of Turkey. This is the first step that allows us to prepare documents (including the power of attorney) for you to open the company. Other points on the list are:
- Registration with the Tax Office
- Writing down the articles of association and the company’s statute (must be notarized).
- Submission of the required documents together with the application to the Commercial Register.
- Notary approval of the statutory books and commercial documents on the day of registration of the company.
- Registration of the company in the regional social insurance company; branches of labour inspection and social insurance.
- Opening a company account with the Bank and payment of the capital – a new visit to the Turkish embassy is required.
- Obtaining permits and concessions if required for a given type of company.
A minimum of one partner is required to establish a company. The maximum number of shareholders is 50. Foreign shareholders are allowed.
The management of the company is exercised by the Manager or the Board of Managers. At least one of the shareholders is a manager. The scope of his duties is determined by the shareholders.
The company must have a registration address. It is also possible to have a stationary office, it is not allowed to locate an office in a warehouse, unless there is a separate office space within it.
Time to set up a company:
The time of establishing the company is about 4 weeks.
The minimum capital is TRY 10000. It is paid in part or in full during registration.
Taxes and finances
The corporate tax in Turkey is 22%. The 18% VAT rate applies only to services provided and goods sold in Turkey. In Turkey, VAT on some products is reduced, including 8% for food and medicines, and only 1% for newspapers and magazines. In order to avoid paying VAT on services and goods sold, it must be proven that they have not been produced in Turkey. The accounts must be kept by a licensed accounting office in Turkey.
Local labor law
Our clients use Turkish companies mainly to trade with Asian and African countries, including Russia. They value Turkey mainly due to the ease of making large transfers and transactions – in Turkey it is unthinkable to block an account for transactions over 15 000 EUR. In practice, the AML procedures are not applied, which in the world of international wholesale trade has made many business partners dizzy.
If you are looking for a jurisdiction that offers the simplicity of running a business – choose Turkey. We set up the company and the bill remotely. Your business can also be run fully remotely.
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