Thinking of company registration In Turkey? Real or legal persons can establish companies and thrive in commercial activity, learn about it.
Company Registration In Turkey
Turkey is a free market economy and foreign, real or legal persons can establish companies and take part in commercial activity here.
From 1954 to 2003, foreigners or Turkish citizens living abroad could establish company under the scope of the Foreign Capital Incentive Code dated 18/1/1954 and numbered 6224. After 2003, company establishment procedures have been performed within the scope of the Foreign Direct Investment Code No. 4875 dated 5/6/2003. Apart from this, there are many laws and regulations.
The establishment of a company is subject to a series of bureaucratic procedures, after which it is possible to operate within the scope of Turkish Tax Legislation and Turkish Commercial Code. For this reason, it is important to obtain assistance in several areas during the establishment of the company.
Thinking of company registration In Turkey? Real or legal persons can establish companies and thrive in commercial activity, learn some facts about it.
Legal Support & Feasibility Study
A unique feasibility study includes preparing the company’s main contract, examining the existing legislation in the sector to be engaged, determining the advantages and disadvantages, and evaluating the necessary incentives and supports.
In addition to the legal difficulties or advantages that can be faced in Turkey, advice on the impact of the Commercial Law and the functioning of the legal system in Turkey is recommended to ensure initial and continuing success of the business.
Trade Name and Trademark-Patent Registration Support
As well as initial support, possible problems that could arise in relation to the trademark such as whether it is possible to use it in Turkey, the presence of similar trademarks, ensuring the protection of the brand’s trademark, while retaining the company name, can be prevented from the very beginning.
After the brand and company title is determined and registered, all services such as tracking, detecting and preventing the registration of similar or counterfeit brands will be provided by our Specialist Lawyers. We will ensure that the trademark and the company name are used safely without any problems at the establishment stage of the company.
Tax and Financial Support
All of the tax processes that must be complied with in the registration and ongoing maintenance of the company are followed by the accountants that you hire for this purpose. Obviously, experience is key – not least since, in addition, any tax benefits arising as a result of the legislation in force in Turkey can best be accessed with assistance from experienced tax advisors.
Which Documents are required and Processes must be followed to register a Company in Turkey?
A-Company Type Determination
There are two major types of company to be established in Turkey. One of them is the limited company, the other is the joint stock company. It is possible to establish both types of company with either one or more partners. It does not make any difference to the organization. It is possible for the person who will establish the company to be a real person as well as a legal person.
Capital (monetary fund) of the company has to be 10.000 TL in limited companies and 50.000 TL in joint stock companies.
However, it is not compulsory to invest this capital during the establishment of the company. It is possible to block ¼ of it in the joint stock companies during the establishment of the company and to pay the remaining portion within 24 months after the establishment.
For limited companies, it is sufficient to make a commitment to establish the company directly and to pay the capital without any blocking.
Limited company partners are fully responsible for public debts (insurance premiums and tax debts) with their personal possessions whereas in joint stock companies, only members of the board of directors are responsible with their personal assets.
Joint-stock company partners, who are not members of the board of directors, are not responsible for public debts. According to the company’s field of activity and goals, which type of company will be suitable will be determined in accordance with legal advice.
B-Determining the Company Name, Trademark and Domain Name
After the company type is determined, it is vital to determine the company name, brand and, typically, internet domain name. At this stage a detailed search should be carried-out to determine if the name and the title is in use in or whether considered names is appropriate since acquiring a brand or company name that is the same or similar to an existing registered trademark may lead you to losing these names with appeals or lawsuits to be filed later. This will cause your company recognition and brand value to disappear and cause serious damage.
Company Registration In Turkey – Domain names: if you are expecting online channels to represent a stronghold for your business, do not miss the opportunity to register several extensions of your branded domain name. I.e. Register a ccTLD (country code Top Level Domain) along with several of the most usual commercial style TLD’s like .COM, .INFO, .NET, etc. That will protect your brand for no money, some times even create a barrier for potential competitors -if you use parallel domain names using aggressive SEO keywording.
An IP Specialist can research a company name, brand and domain name, and if deemed appropriate, it will be kept under constant protection and effective tracking.
Considering that trade has been transformed by the internet, it is a fact that the internet domain name is as important as the company name and trademark. You can also receive effective registration and protection of the domain name.
C-Establishment Stage of the Company, Necessary Documents and Company’s Operation
After determining the type and name of the company, additional actions must be taken to set-up the organization. First of all, the company main contract should be prepared. The main contract of the company is standard for many companies, which is often not considered during the establishment phase, but can cause serious problems later. We will prepare a special contract for you, taking into consideration the structure, management style and characteristics of the company you want to establish, and possible management problems will be overcome.
D- Preparation of Company Articles of Association
Before the company main contract is prepared, it is necessary to clarify the management issues such as the name of the company, trademark, who will be the partner, who will be the manager, the shares to be held by each of the partners, the majority for decisions to be taken, how the company management will be designed.
Accordingly, the company main contract will be prepared. With the start of the company, the main issues such as how to make decisions, how to carry out other operations related to administration will be determined entirely by the articles of association. Therefore, the articles of association of the company is an important text that concerns the entire field of work of the company. As such, it is very important to find the right main contract to prevent commercial and legal problems from the beginning.
After determining the company and brand name, partners and managers, it is necessary to determine where the company headquarters will be and its address. If the company has more than one partner, all of the important issues such as the conditions of leaving the company, the transfer of shares and how the partnership structure will be shaped can be determined by the articles of association.
After the main contract of the company is determined, the company is signed in the chamber of commerce and signed by the partners of the company after applying to the chamber of commerce of the city and receiving the relevant approvals.
E-Registration Application Documents Required by Chamber of Commerce
The Chambers of Commerce requires the following documents if you really go for your company registration in Turkey.
- Signature declaration of the person to be authorized by the company
- Room registration statement
- Company establishment application form
- Foreign partner application form
- Translation of foreign partner’s copy of passport, ID number given to foreigners and tax number, approved residence permit.
- If necessary, memo of the blocked capital amount
In addition to these documents, there may be documents to be specifically requested by the chamber of commerce in each province.
Subsequently, after the application is made, the tax number will be obtained from the tax office for the company. The signature declaration will be taken from the notary public and the books required to be kept in accordance with the Turkish Commercial Code will be registered.
F-Registration in E-Tax Office and Submitting the Notice for Start of Operation
After the company registration is made to the Chamber of Commerce, it will be the stage of registration to the Tax Office. For registration to the Tax Office;
- Company main contract (approved)
- Signature circular (approved)
- Lease agreement or title copy of the company headquarters
- Company registration certificate
- Certificate of residence or residence permit of the founders of the company
- Identity document or certified copies of company partners
After the application is made with these documents, an officer from the tax office goes to the company’s specified address and checks whether the company is operating at the address. The application process is completed after the company is established in this way.
At this stage, it is possible to make the necessary applications to benefit from the existing incentives and supports.
G- What are the Taxes and Insurance Premiums to be Paid Once the Company Starts Operation?
After the establishment of the company, some taxes relating to the insurance premiums of the company partners and employees will have to be dealt with.
The taxes and time-periods when they should be paid are as follows:
- Value Added Tax (Every month)
- Insurance premium for employees (every month)
- Insurance premium of company shareholders and board members (every month)
- Withholding tax (every 3 months)
- Temporary Tax (every 3 months)
- Annual Corporate Tax (annually)
Apart from this, there may be municipal deductions that must be paid to the relevant Municipality due to the activity, according to the facility or place of work or branches opened at the place of operation.
Turkey has many tax advantages and reductions in the taxation system. The determination and implementation of discounts to be made according to the expenditures made every month and the taxes to be paid according to the profitability status are carried out by your accountant, which monitors the company’s monthly invoices and expenditures. You can save lots of money with a clever tax management, perhaps best moment for mentioning how critical a local, English-speaking tax planning expert can be.
It is possible to say that there will be no large fiscal burdens on the company in the first years following the establishment since there are incentives and support policies for employment and holding the company in the first year when the company was founded and started its operation. Of course, it will be possible to achieve this result by obtaining correct and professional support in many different areas as explained above.
Are you planning to go solo on business? The self-employed set-up service is for you.