Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
Business registration and support in Turkey
COMPANY REGISTRATION IN TURKEY
It can be a profitable solution, both when starting a startup and expanding an existing business.
Those who plan to register a company in Turkey should know the following:
- The state borders 8 countries of Eurasia and the Middle East (Bulgaria, Georgia, Syria, Iran, Armenia, Greece, Iraq, Azerbaijan). Such a territorial location is one of the key advantages that attract the attention of a considerable number of foreign investors.
- The capital of the country is Ankara, and the largest city is Istanbul.
- the national language is Turkish.
- The country’s currency is the Turkish lira (1 TRY = 0.14 USD).
If you want to open a business in Turkey, we recommend that you read this material carefully.
Get advice on business registration in Turkey
Advantages of company registration in Turkey
The Republic of Turkey is located partly in southwest Asia and southern Europe.
It is a progressive state, which is characterized by rapid economic development, the presence of a favorable environment for the creation of any type of business – from small to large, as well as attractive tax conditions.
The main advantages of opening a company in Turkey are:
- Stable political situation.
- High level of GDP.
- Established maritime, as well as import-export trade with European and Asian countries(Germany, Italy, USA, China, Great Britain, France and others).
- The government is interested in attracting foreign direct investment.
- Availability of a large number of free and investment zones.
- A relatively quick and simple procedure for creating a business.
In addition, those who want to open a business in Turkey, it will be interesting to know that according to the results of the Doing Business research, the country took:
- 33rd place in terms of ease of doing business;
- 27th place in registration of ownership rights to real estate;
- 26th place in terms of taxation;
- 21 places for the protection of minorities.
If you are interested in doing business in Turkey, you should also consider that the country has signed 76 DTA agreements with European, Asian and African countries.
Popular business directions
If you intend to do business in this jurisdiction, pay attention to these, the most promising options:
- Registration of a production company in Turkey.
- Institution of the Turkish transport company.
- Opening of a mining enterprise.
You can also start a travel company or launch an investment project in Turkey.
To find out the details, we advise you to order an individual consultation on opening a company in Turkey.
A foreign entrepreneur who decides to open a business in Turkey can choose the following legal forms:
- Limited Liability Company (LLC).
- Joint Stock Company (JSC).
- Free Zone Company (FZC).
- Technological Development Zone Company (TDZC).
- Mining company (Sharikat Altaedin).
Below, we will consider in more detail the peculiarities of business creation when choosing the most popular organizational and legal forms.
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LLC registration in Turkey
Limited Liability Company or as it is also called –Limited company is one of the most convenient and easy to manage OPF, which is preferred by most foreign entrepreneurs. Such a company is well suited for conducting commercial or industrial activities, but not banking or insurance.
If you plan to open an LLC type company in Turkey, you will need to meet a number of mandatory conditions of the local regulator.
Especially:
- Approve the name of the enterprise, which must list the main fields of activity. The company should be at the end.
- Appoint one shareholder and one director, who may be foreign citizens. Shareholders can be individuals or legal entities, but the director is only an individual.
- Appoint a secretary (may be a non-resident).
- Deposit the minimum (paid) capital – 1600 EUR.
- Conduct audits and submit annual tax returns.
Those who are interested in registering a company in Turkey, especially an LLC, do not necessarily have a local office and hire local employees (they can also be expatriates).
We draw the attention of entrepreneurs to the fact that in accordance with the provisions of the Law on the Freedom of Movement of Labor in the European Union, employees employed by a Turkish company from EU countries do not need to obtain a work visa.
Opening of JSC in Turkey
Joint Stock Company, also known as Anonim şirket, is second in popularity after LLC. The institution’s relatively simple process, the possibility of obtaining various state grants and business incentives are some of the main reasons why entrepreneurs choose this OPF.
If you want to open a company in Turkey remotely by JSC type, you will need to comply with the following regulatory requirements:
- One or more shareholders (may be non-residents).
- Authorized capital — 29,218 EUR (minimum amount).
- The local secretary is mandatory.
- Local registered address is mandatory.
- An audit is required, as well as annual financial and tax reporting.
Registration of the company’s free zones in Turkey
As we mentioned earlier, local authorities show a high interest in attracting foreign investors in order to strengthen the economic position of the state.
Those wishing to register a company in Turkey should take into account that today there are 19 free zones in the country with a special regulatory regime aimed at stimulating the export of goods and services. They are also called export processing zones (EPZ), and to conduct activities in them, businessmen need to obtain a special license — Operating License.
To open a company in the free zone of Turkey, the key areas are:
- R&D
- Software development.
- Trade.
- Banking business.
- Insurance.
- Warehouse logistics.
Among the most popular solutions, it is possible to single out such as: registering a company in the Mersin Free Zone (the first free zone of Turkey), opening a company in the Tubitak MRC Free Zone, and registering a business in the Istanbul Thrace Free Zone.
To establish your business under the FZ type of company in this jurisdiction, you will need to meet a number of certain conditions of the regulator:
- One shareholder, who can be a foreign individual or legal entity.
- One director, who may be a foreign individual.
- Unique name of the enterprise.
- Manager (non-resident).
- Authorized capital – 1,600 EUR (minimum amount).
- Opening an account in a Turkish bank.
- Conducting a mandatory audit.
- The rest of the tax reporting (every year).
- The presence of a local office is not necessary (lease is possible).
Advantages of opening a company in the free zone of Turkey:
- Easy access to local and foreign markets (EU, Asia).
- Income tax for manufacturing companies and firms providing certain logistics services is 0%.
- The rate of consumption tax, real estate tax, VAT and personal income tax is 0%.
- Full foreign ownership is allowed.
- stamp duty and customs duties are absent.
- Free repatriation of profits is possible.
- Rental of premises, offices and warehouses is available for workers.
- Simplified business creation process.
- Free Zone Company registration consultation in Turkey will help you learn more.
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