How to register a company in Turkey.
-Types of companies in Turkey.
-Company registration steps and needed documents.
-Benefits of registering a company in Turkey.
-Corporate tax in Turkey.
Aboves are the topics of this post.
According to Turkish law, you must register a company to start any kind of business. Setting up cafes and restaurants, hairdressers, tailors, etc. and even selling goods and services in Turkey all require company registration. In the following, we will explain the types of companies in Turkey and which company is suitable for which activity.
Types of companies in Turkey
In Turkey, you can register 7 types of companies, of which two types, sole proprietorship and LIMITED, are the most widely used types for residence.
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Sole Proprietorship in Turkey
This type of company, which has a limited articles of association and it is not possible to include any activity in it, can be registered by a person and receive a registration number and activity license. If your business is limited, we suggest registering this type of company because the registration of this company will be done in less than a few days and its cost will be in total about three thousand liras. It is also easier for the CEO to get a work permit.
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Limited Liability Company
If you want to start your own business in partnership with someone else, you need to register a limited company. The liability of the company’s debts depends on the share of the initial capital of each partner and the minimum capital for registering a limited company is 10 thousand liras.
Company registration steps and needed documents:
Registration of a company in Turkey takes about 3 to 5 working days and the registration process will be as follows:
- Translation of partners’ passports.
- Hiring a certified chartered accountant.
- Preparing the company’s articles of association in Turkish.
- Obtaining the tax number of the company’s shareholders from the tax office.
- Filling out the special form for company registration in Turkey.
- Refer to the Turkish Chamber of Commerce and complete the relevant forms.
- Setting the commitment form (Chamber of Commerce).
- Official registration of the CEO’s signature in the Civil Registry Office.
- icial approval of the articles of association in the Civil Registry Office.
- Opening a personal and company account to deposit the initial capital.
- Achieving a quarter of the company’s capital in your account.
- Printing the company registration in the official newspaper.
- Preparing the office rent contract and announcing it to the tax office to send an inspector.
- Obtaining the company tax number from the relevant office (in Turkish is called “Vergi Levhası”)
- Obtaining the company registration card or the company commercial card.
- Obtaining the license of commercial accountant notebook. accounting notebooks.
The company documents must be registered in the central registry system (MERSİS) and some of the above documents must be sent to the business registration office. Note that all of the above steps are performed by the chartered accountant you hire and only the CEO and partners need to be present at the chamber of commerce for signing the documents.
Benefits of registering a company in Turkey
- Receiving Turkish residency for the CEO and his wife and children
- Receiving a work permit, this leads to Turkish citizenship and a passport after 5 years.
- Opening a bank account in Turkey and using its benefits.
- Starting your business and trade legally.
- Obtaining a commercial card from chamber of commerce in Turkey.
- Obtaining the domain for the company website with the national extension (.tr).
The very important thing about getting a work permit (“Çalışma İzni” in Turkish) for the CEO is that you can only get your work permit under certain conditions without hiring Turkish personnel, and that depends entirely on how your articles of association are drafted. For example, for a company in which only 2 people are enough in the description of its activity, there is no need to hire Turkish and the CEO can apply for work permit. But for most companies, you have to hire at least 5 Turkish workers to get a work permit for each foreigner. ComTurkey can register any company for you in the shortest time and help you obtain a residence permit or official work permit for the CEO.
Corporate tax in Turkey
After registering a company, you must specify your tax payment period, which can be one month or three months. The company’s chartered accountant must then prepare and adjust your expense and income invoices. After reviewing the invoices, the company’s net profit will be determined and 20% of the income must be taxed.