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Turkey

Steps to Set Up a Company:

Turkey

Choose a Business Structure

  1. Sole Proprietorship (Şahıs Şirketi): Single owner, full liability.
  2. General Partnership (Kollektif Şirket): Two or more partners, shared liability.
  3. Limited Partnership (Komandit Şirket): General and limited partners.
  4. Limited Liability Company (Limited Şirket - Ltd. Şti.): Separate legal entity, limited liability.
  5. Joint-Stock Company (Anonim Şirket - A.Ş.): Separate legal entity, limited liability, suitable for larger businesses.
  6. Branch (Şube): A branch of a foreign company operating in Turkey.
  7. Liaison Office (İrtibat Bürosu): Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

  1. Choose a Company Name: Ensure it is unique and follows naming regulations.
  2. Prepare the Articles of Association: Outlining the company’s structure and rules.
  3. Notarize the Articles of Association: Required for company registration.
  4. Open a Bank Account: Deposit the initial capital required for the company type.
  5. Register with the Trade Registry Office: Submit the incorporation documents and pay the registration fee.
  6. Obtain a Tax Identification Number (TIN) from the Tax Office: For tax purposes.
  7. Register with the Social Security Institution (SGK): For social security purposes.
  8. Register for Value Added Tax (VAT) with the Tax Office: If applicable.

Open a Turkish Bank Account

  1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

  1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.

Comply with Turkish Employment Laws

  1. Employment Contracts: Draft contracts that comply with Turkish labor laws.
  2. Register with the Social Security Institution (SGK): For social security purposes.
  3. Health and Safety Regulations: Follow guidelines from the Ministry of Family, Labour, and Social Services.

Accounting and Reporting

  1. Set Up an Accounting System: Maintain accurate financial records in compliance with Turkish accounting standards.
  2. Annual Financial Statements: Prepare and file annual financial statements.
  3. File Annual Tax Returns: Submit annual tax returns to the Revenue Administration.

Laws and Regulations to Consider

Corporate Law

  1. Turkish Commercial Code (TCC): Governs the formation and operation of companies.
  2. Code of Obligations: Governs contracts and obligations.

Tax Law

  1. Corporate Tax Law: Governs corporate income taxation.
  2. Value Added Tax (VAT) Law: Governs VAT regulations.
  3. Income Tax Law: Governs income tax for individuals and sole traders.

Employment Law

  1. Labor Law (Law No. 4857): Governs the terms and conditions of employment contracts.
  2. Social Insurance and General Health Insurance Law (Law No. 5510): Governs social security contributions.
  3. Occupational Health and Safety Law (Law No. 6331): Sets health and safety standards for workplaces.

Data Protection Law

  1. Personal Data Protection Law (Law No. 6698): Governs data protection and privacy.

Environmental Law

  1. Environmental Law (Law No. 2872): Governs environmental protection and sustainability practices.

Intellectual Property Law

  1. Industrial Property Law (Law No. 6769): Governs the protection of trademarks, patents, and industrial designs.
  2. Copyright Law (Law No. 5846): Governs the protection of copyrights.

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Turkey. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.

When to Consider Setting Up a Company in Turkey:

  1. Strategic Geographic Location: Turkey’s location provides access to markets in Europe, Asia, and the Middle East.
  2. Growing Economy: Turkey has a rapidly growing economy with opportunities in various sectors such as manufacturing, tourism, and technology.
  3. Favorable Investment Climate: Turkey offers various incentives for foreign investment and a supportive regulatory environment.
  4. Skilled Workforce: Access to a highly educated and skilled labor pool, particularly in engineering, manufacturing, and services.
  5. Developed Infrastructure: Turkey has a well-developed infrastructure, including transportation, telecommunications, and energy.
  6. Innovation and Technology: Turkey has a strong focus on innovation and technology, with numerous research institutions and tech hubs.
  7. Stable Economic Environment: Turkey offers a stable macroeconomic environment with opportunities for growth.
  8. Quality of Life: Turkey offers a high standard of living, excellent healthcare, and a vibrant cultural scene, making it attractive for expatriates and international employees.

By considering these factors and aligning them with your business goals, you can determine if setting up a company in Turkey is the right move for your organization.

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.