Establishing your own company in Turkey.. steps and details
Taking any step in the investment world requires a lot of will and patience and requires deep thought and comprehensive planning regarding the field and careful study about the country in which the project will be held.
Choosing Turkey to establish a company or undertake an investment project will save the investor all the aforementioned steps, as Istanbul alone has transformed in recent decades into an incubator for the largest and most important economic, commercial, industrial, and real estate projects in the world.
The position Turkey has achieved in global investment is a natural product of the volume of support, incentives, and important and facilitating decisions that the Turkish government provided to Turkish and foreign investors on an equal basis.
What documents are required for this?
Establishing a company in Istanbul or Turkey, in general, may seem complicated, but in reality, it is very simple, it only requires taking into account easy steps and accompanying reliable companies specializing in establishing companies in Turkey.
Among the papers that the foreigner must present to establish a company are the following:
- A valid passport of the project or company owner, translated into Turkish and certified by a notary.
- The tax number, which can be extracted easily with any tax department in the region where the foreign investor is located in Turkey.
- An approval certificate from the security authorities that allows a foreign investor to establish a company in Turkey.
How to establish a company in Turkey?
The necessary steps to establish a company in Turkey according to sound principles:
The first step
The foreigner who wants to establish a company in Turkey must choose the company’s location while determining the capital, as foreigners who come to establish a company in Turkey are required to specify a headquarters for it, that is, an actual office and not a fake company.
A foreigner can also buy a property in Turkey on the condition that it is commercial to allocate it as the headquarters of his company, and he can also rent a commercial office which is abundant, as most construction companies within their projects and residential complexes allocate offices in promising areas in the business world, and here the foreigner can seize the opportunity And study the suitability of the location with the nature of his work.
In general, the prices of commercial offices in Turkey and the value of renting them vary according to the region, size, facade, and view, so real estate experts advise buying a property in Turkey to take it as a workplace instead of renting it because it requires additional costs such as insurance, commissions, and others.
Regarding the capital allocated for establishing a company in Turkey, Turkish law stipulates that the minimum amount must be 10 thousand Turkish liras, but it is considered a very small amount and does not give broad powers, and it is always recommended that the amount is in the range of 100 thousand Turkish liras and above if the foreign investor wants to benefit from additional powers.
Among the additional benefits that the foreigner well get when establishing a company in Turkey with a financial value of more than 100,000 Turkish liras, obtaining a work permit, and also establishing work for his partners and employees working in them, with the possibility of the company joining the Turkish economic bodies and obtaining certificates from TURSAB, for example. If it is in the tourism sector.
The company can also benefit from employment contracts with other companies and institutions, in addition to the Turkish government granting it all facilities in the event of importing and exporting goods.
It should be noted in this regard that the foreigner who is about to establish a company in Turkey is not obligated to deposit his entire capital in Turkish banks in one go, but if he applies for a work permit, then it becomes necessary. Moreover, Turkish law also requires that the amount be deposited within Two years from the date of the company’s incorporation.
The second step
After choosing the appropriate location for the headquarters and determining the capital, the foreigner who is expected to establish a company in Turkey needs to move to the second step, which requires preparing the establishment contract to sign it.
The step must be supervised by a certified accountant by the Turkish state, as he is considered the legal representative of the company before the Turkish state.
And the role of the legal accountant of the foreign company in Turkey is limited to handing over the company's bills, expenses and purchases to the Turkish state departments to register them and save the company's activity, and in the event of failure to hire an accountant, penalties will be imposed on the company that may reach the order of final closure.
The costs of the legal accountant of the company are 400 Turkish liras per month, which can be increased according to the nature and size of the company.
Among the main points is also "company books" that record all accounts and submit to various government departments annually with a financial amount estimated at approximately 1,100 Turkish liras.
The process of contracting with a chartered accountant for the company and preparing the books allows the move to the step of preparing the contract of incorporation of the company.
- The third step
Turkish law requires a foreigner wishing to establish a company in Turkey to submit the tax number within the necessary documents, and the same applies to the company after its incorporation as an entity that has a tax number that must be extracted from the tax department.
Legislation in Turkey imposes quarterly and annual taxes on companies, in addition to rental fees ranging between 1,500 and 3,000 Turkish liras.
The step of going to the tax department and registering the company to obtain its tax number is followed by the step of paying taxes.
The aforementioned steps should be taken with the accompaniment of the agent, broker, or company that has experience in establishing companies for foreign investors in Turkey in order not to face any difficulties or obstacles.
- The fourth step
Opening a bank account for the company to deposit the capital, where the owner of the company obtains a paper with the value of the deposit by the bank, and here the company’s papers can be managed to obtain the approval of the Turkish Chamber of Commerce to establish the company.
It should be noted that the company granting work permits to its employees does not take place until after the full capital is deposited in the bank account.
- The fifth step
Through it, the signature of the company’s incorporation contract is approved after the completion of all the aforementioned procedures, with the signature of the company’s director before a notary, as he is authorized to sign in the name of his company.
With the previous five steps, the foreigner becomes the actual founder of a company in Turkey.
The different types of companies in Turkey
In this paragraph, we will present to you the different types of companies in Turkey, so that any foreigner wishing to establish one, can identify the differences and thus choose the most suitable for his budget and options:
- Partnership companies.
- Simple Commandite companies.
- Joint-stock companies in which the capital is divided into several shares.
- Limited companies with a capital of 10 thousand Turkish liras, which is the most popular type for foreigners and the ideal model for them.
Finally, Alhuda Real Estate Company reminds them that it helps you in all steps of establishing a company in Turkey while guiding you to the best and most appropriate option for your budget.