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Contents
1.Purposes for Foreigners to Establish a Company in Turkey
2.Types of Companies for Foreigners in Turkey
3.Process for Foreigners to Establish a Company in Turkey
4.Required Documents for Foreigners to Establish a Company in Turkey
5.Costs of Establishing a Company in Turkey for Foreigners
6.Tax Status for Foreigners Establishing a Company in Turkey
7.Legal Obligations for Foreigners Establishing a Company in Turkey
8.Support and Consultancy Opportunities After Establishing a Company in Turkey for Foreigners
9.Points to Consider in the Procedures of Establishing a Company in Turkey for Foreigners
10.Obligation to Have a Lawyer in Joint Stock Companies
11.Successful Tips for Foreigners to Establish a Company in Turkey
12.Conclusion and Recommendations

Purposes for Foreigners to Establish a Company in Turkey

Foreigners may have various reasons for establishing a company in Turkey, including:

  • Market Access: Turkey’s strategic location and large market attract foreign investors.
  • Cost Advantage: The lower cost of doing business in Turkey compared to other countries appeals to foreign companies.
  • Regional Expansion: Turkey’s strategic position between the Middle East, Europe, and Asia makes it advantageous for regional expansion.
  • Investment Incentives: Various investment incentives and supports offered by Turkey can attract foreign investors.

Types of Companies for Foreigners in Turkey

Foreigners can choose from different types of companies in Turkey. The most common options include limited liability company (Ltd. Şti.), joint stock company (A.Ş.), and branch offices. A limited liability company is popular due to its lower capital requirement and limited liability. A joint stock company is ideal for larger enterprises and requires a higher capital. A branch office is an option for foreign companies wishing to operate in Turkey. Other special company types are also available for foreign companies.

Process for Foreigners to Establish a Company in Turkey

Establishing a company in Turkey involves a detailed procedure. To successfully complete this process, the following steps should be followed:

  • Determine the Type of Company: Foreigners should choose between different types of companies, such as limited or joint stock companies.
  • Register with the Trade Registry: Prepare the necessary documents and apply for registration with the trade registry.
  • Apply to the Tax Office: Submit an application to the tax office to determine the company’s tax liability.

Required Documents for Foreigners to Establish a Company in Turkey

  • Passport or ID card
  • Authorized signatory circulars issued in the home country
  • Notarized translations of documents certifying the company’s establishment or representatives
  • Documents certifying the company’s establishment
  • Publication in the home country’s trade registry gazette
  • Documents indicating the company’s establishment process and capital structure

Costs of Establishing a Company in Turkey for Foreigners

The costs of establishing a company in Turkey for foreigners depend on various factors, including the type of company (limited liability company, joint stock company, etc.), capital amount, consultancy services, and other legal procedures. Other cost factors include tax liability, registration fees, and notary expenses. Careful planning is essential when determining these costs.

Tax Status for Foreigners Establishing a Company in Turkey

Foreigners establishing a company in Turkey become taxpayers. Companies are subject to income tax, corporate tax, and VAT. Tax rates and applications vary depending on the company type and activity field. Getting support from expert consultants for the required documents and processes is beneficial.

Legal Obligations for Foreigners Establishing a Company in Turkey

Foreigners must comply with the local Commercial Code and related regulations when establishing a company in Turkey. The required capital amount must be determined and invested according to the company type. Notary approval is necessary for the establishment procedures, and the company must be registered with the Turkish trade registry. Foreigners are obliged to obtain a tax number and comply with tax regulations. Necessary permits and licenses must be obtained according to the business area.

Support and Consultancy Opportunities After Establishing a Company in Turkey for Foreigners

Various support and consultancy opportunities are available for foreigners after establishing a company in Turkey:

  • Investment Support Office (ISPAT): Guides foreign investors on business opportunities in Turkey.
  • Chambers of Commerce: Local chambers of commerce can provide more information and support regarding the business.
  • Accounting and Law Firms: Companies can get support from firms addressing accounting, tax, and legal needs.

Points to Consider in the Procedures of Establishing a Company in Turkey for Foreigners

  1. Foreigners should conduct detailed research on legal regulations and requirements in Turkey before establishing a company.
  2. When deciding on the company type, factors such as business model and tax advantages should be considered.
  3. Seeking expert advice to ensure compliance with local commercial regulations before opening a business is crucial.
  4. It is vital to prepare the required documents accurately and completely during the company establishment process.
  5. Foreigners should consider factors like the tax system, work permits, and capital requirements while taking the right steps to establish a company in Turkey.

Obligation to Have a Lawyer in Joint Stock Companies

Joint stock companies are required by Turkish Commercial Code to have at least one lawyer. The presence of a lawyer is essential to ensure proper legal representation and compliance with legal requirements. The obligation to have a lawyer may vary depending on the company’s sector, so joint stock companies must act diligently to comply with legal regulations and avoid legal issues.

Successful Tips for Foreigners to Establish a Company in Turkey

  •  Get Expert Help: Understanding and complying with local regulations is crucial when establishing a company in Turkey. Professional help from local experts can facilitate the process.
  • Conduct Market Research: Analyze the sector and target audience in Turkey. Understanding competition, demand, and trends through market research is essential for a successful company establishment.
  • Choose the Right Partnership: Collaborating with a local partner can be beneficial when establishing a company in Turkey. The right partnership can provide access to local networks and support business success.
  • Complete Legal Documents: Completing the necessary legal documents accurately and on time is important when establishing a company in Turkey. Obtaining a tax number, trade registry registration, and other documents on time can ensure smooth legal processes.

Conclusion and Recommendations

The above information provides a general framework for the legal aspects of “Establishing a Company in Turkey for Foreigners.” This is a significant and legally complex topic that often requires legal consultancy. For more information and consultancy, please contact our law firm.

 

CR Partners

CR Partners Law Firm has become one of the well-known law firms in Turkey with its steady development since the day it was founded. Today, it is organized into specialized departments according to their fields of work in order to provide legal services in a wide range and to reach solutions in the most efficient way.

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