Over the last several years, Turkey has become a major hub for investment due to a growing economy and a central location wedged between Europe and the Middle East. The Turkish government has also embarked on a process of enhancing the business and investment environment from reducing red-tape for those seeking to set up a company in Turkey to enhancing infrastructure, which attracts investors to the country. These factors, among many others, have put Turkey in the center-stage for many public and international companies and organizations to set up their offices in Turkey’s major cities. A majority of companies set up their offices in Istanbul and Ankara, followed by Izmir and other important Turkish cities.
Can foreigners set up a company?
If you are wondering whether or not foreigners can establish a company in Turkey. The answer is yes of course. And, it can be rather simple. A private limited company can be set up by two or more non Turkish nationals. To begin the process, it is advisable to contact a lawyer and a reputable local agent who can help and familiarize you with the procedures.
Cost of setting up companies
A private limited company will cost TL5, 000, with 25% of this amount needed to be paid within the first 90 days of establishment, while the remaining can paid within three years. Once the company is set up, the directors need to register the business with the local tax office and trade registry. Setting up a limited company can take little to no time, often time it can take only one day.
For the set up process, foreigners wishing to set up a company in Turkey, the Articles of Association must be written legally and conform with article 279 of Turkish Commercial Code and needs to be written and signed by the founding members of the business and incorporate the phrase “limiter” in the company’s name. It is mandatory that the founders write their full names, addresses, and trading address. From there, the document should be notarized at a notary and translated if necessary. The trading name must not be in use by any other business or registered by anyone else.
For the next step, you will to contact the Turkish Chamber of Commerce within 15 days to organize the official trade registry. During the registry procedure, you will need your filled in company registration application form, your written request for application, identification proving you are the founding members, a letter of commitment in line with Article 29 of the Trade Registry Regulations, and a receipt of payment of the deposit necessary to the Customers Fund Account (normally 1/1000 of the company’s capital).
Is there need for professional assistance?
If you are considering setting up a company in Turkey, we highly recommend that consult legal advice first from a lawyer who knows company laws in Turkey who has experience in helping expats set up businesses in Turkey. We also recommend that you consult the Turkish embassy in your home country and find out how the embassy can be of help.