Contents
- Foreigners’ Company Establishment Opportunities in Turkey
- Most Preferred Company Types in Turkey
- Which Company Type is Most Advantageous for Foreigners in Turkey?
- Advantages of Limited Liability Company for Foreign Investors
- Benefits of Joint Stock Company for Foreign Investors
- Company Establishment Processes in Turkey and the Need for Legal Assistance
- Conclusions and Recommendations
In recent years, Turkey has become one of the countries attracting international capital with the opportunities and attractive incentives it offers to foreign investors. There are different types of companies available for foreign entrepreneurs who want to start a business in Turkey, and choosing the right one among these options is crucial for the investor to achieve their business goals. Selecting the correct company type is not only important for cost and establishment process but also for the sustainability and ease of management of business activities in Turkey.
In this article, we will thoroughly examine the most advantageous company types for foreigners in Turkey and the advantages these types offer. Thus, foreign investors planning to invest in Turkey can determine the company type that best suits their business, making a strong start.
- Foreigners’ Company Establishment Opportunities in Turkey Turkey offers a free trade environment for foreign investors. Therefore, foreign nationals have the opportunity to establish a company in Turkey with the same rights as Turkish citizens. The company establishment process for foreigners in Turkey generally consists of several steps:
Trade Registry Registration: Investors who want to establish a company in Turkey must first register their company at the Trade Registry Office.
Capital Investment and Bank Account Opening: Investors must deposit the company’s capital into a bank and open a bank account according to the company’s needs.
Tax Office Registration: After the company’s registration, tax office registration is done to become a taxpayer.
While certain conveniences are provided for foreign investors in Turkey, choosing the most suitable company type regarding tax advantages, capital adequacy, and management flexibility is crucial for the success of the process.
- Most Preferred Company Types in Turkey For foreign investors who want to establish a business in Turkey, two main types of companies stand out:
Limited Liability Company (LTD): This is the most preferred company type by foreign investors in Turkey. Limited liability companies are quite popular due to the low amount of capital required, the quick establishment process, and ease of management.
Joint Stock Company (A.Ş.): Preferred especially for large-scale investments. Shares in joint-stock companies are easily transferable, and they allow for public offerings. However, the capital requirement at the establishment stage is higher compared to limited liability companies.
The advantages and disadvantages of these company types can vary depending on the investor’s business model and field of activity. Therefore, choosing a company type suitable for business goals is necessary for the healthy continuity of business activities.
- Which Company Type is Most Advantageous for Foreigners in Turkey? For foreign investors considering establishing a company in Turkey, limited liability companies stand out as the most advantageous option in many respects. Limited liability companies offer an ideal structure for foreign investors due to their low capital requirements and flexible structure. Especially for small and medium-sized enterprises, establishing a limited liability company reduces establishment costs and simplifies the management process.
Flexible Management Structure: The management structure in limited liability companies is flexible, and the number of managers can be limited. This provides foreign investors with the advantage of managing their business with less bureaucracy.
Low Capital Requirement: The minimum capital requirement in limited liability companies is quite low compared to joint-stock companies, allowing foreign investors to allocate capital more easily and start their business.
For entry-level investments, a limited liability company offers foreign investors an affordable and quickly established option.
- Advantages of Limited Liability Company for Foreign Investors Limited liability companies, as the most preferred type of company in Turkey, offer distinct advantages to foreign investors. The advantages of establishing a limited liability company in Turkey are as follows:
Lower Tax Burden: Tax obligations for limited liability companies are lower than those for joint-stock companies. This is a reason for preference among small and medium-sized enterprises.
Ease of Establishment and Quick Process: The establishment process for limited liability companies is faster and less costly. Only two founding partners are sufficient at the establishment stage, and the company can be set up with the completion of some legal documents.
Ease of Management: The management structure in limited liability companies is simple. Foreign investors can manage their business with less bureaucracy, increasing the company’s flexibility.
- Benefits of Joint Stock Company for Foreign Investors Joint-stock companies are a preferred type of company for large-scale investments in Turkey. Some advantages of establishing a joint-stock company in Turkey for foreign investors are as follows:
Ease of Share Transfer: Shares in joint-stock companies are more easily transferable. This is advantageous when investors want to exit the company or add new shareholders.
Capital Increase and Public Offering Opportunity: Joint-stock companies can be offered to the public. This allows the company to reach a wider investor base.
Broad Partnership Structure: The partnership structure in joint-stock companies is more flexible, and more shareholders can be accepted.
These advantages make joint-stock companies attractive, especially for foreign investors with large investments and public offering goals.
- Company Establishment Processes in Turkey and the Need for Legal Assistance Foreign investors may encounter many legal processes when establishing a company in Turkey. Conducting these processes correctly is critical to preventing potential legal issues in the future. The company establishment processes in Turkey consist of the following steps:
Trade Registry Registration: The establishment process begins with an application to the Trade Registry Office.
Tax Office Registration Procedures: After the company’s establishment, tax office registration is done to become a taxpayer.
Notarization and Bank Account Opening: Signature declarations of the founding partners are notarized, and a bank account is opened in the company’s name.
Working with an expert lawyer during these processes helps prevent potential deficiencies and mistakes, ensuring that the company is established on a solid foundation.
- Conclusions and Recommendations
The company establishment process in Turkey can be as advantageous as it is complex for foreign investors. Correctly conducting the legal processes and choosing the right company type are necessary for the sustainability of the business. Receiving professional support during the company establishment process in Turkey helps foreign investors overcome the legal obstacles they may encounter and accelerates the process. Preventing mistakes during the establishment phase is crucial for protecting the company’s legal status and laying a solid foundation for future transactions. Receiving legal assistance is very important. Our expert lawyers guide you through each stage of the company establishment process, ensuring you make the right choices. For all your questions and support needs regarding establishing a company in Turkey, please contact us.
