The Process Of Opening A Business In Turkey

The Process of Opening a Business in Turkey

The process of opening a business in Turkey is one of the most important issues that foreigners are most curious about. Obtaining a business license is the most important condition in this regard. In this context, let's examine all the questions about opening a business together.

Foreign entrepreneurs who want to open a business in Turkey need to complete a few steps before starting their operations. These steps consist of:

  • To choose the type of company they want to establish and to have the incorporation documents prepared in accordance with the Companies Law and notarized.
  • Open a corporate bank account and deposit the capital required by law.
  • To appoint directors or directors of the company as prescribed by legislation.
  • Submitting incorporation documents and details of shareholders and directors to the Commercial Register.
  • Obtain tax and VAT numbers as well as registration with the tax office for social security purposes.

Documents Required to Open a Company in Turkey

One of the most important steps of establishing a company in Turkey is the preparation of the necessary documents to register the business with the Trade Registry Office. The main set of documents that must be prepared and notarized is the articles of association, which must contain all the details and names of the shareholders, their place of residence, their contribution to the capital of the company and the number of shares. The articles of association should also include information including the names of company directors, their appointment and dismissal, their duties and obligations.

The same document should clearly state the trade name of the Turkish company, its address in this country and the definition of its field of activity. The articles of association may also include other clauses relating to the company and possible amendments to dispute resolution if any problems appear between the shareholders. It is very important that the articles of association are drawn up in accordance with the provisions of the Commercial Code. If you are a foreign entrepreneur and want to open a company in this country, our law firm in Turkey can assist you in the preparation of these documents.

An important point to note is that a simple application form must be filled in at the Trade Registry in case of incorporation of a sole proprietorship. In partnerships known as limited partnerships in Turkey, the partnership deed is the basis of their formation.

Shareholders are the founders or better business owners of the company. These may be natural persons or companies and may have various rights as well as duties within the company. The minimum number of shareholders of a Turkish company can be both private and public companies. These may be Turkish citizens or residents; however, foreigners can also act as sole shareholder when establishing a company in this country.

Company Management in Turkey

One of the most important roles in a Turkish company is assumed by the company's executives. In the case of a private company, the shareholders must appoint at least one company director. A board of directors has to provide management of a public company in Turkey. At least one auditor must be appointed in the same type of company. In the case of private companies, the auditor will be independent and will be called only when the financial documents of the business need to be audited. It should be noted that regardless of the type of company, at least one of the shareholders must be the director of the company. The manager role can also be fulfilled by another company, provided that it appoints a natural person as the company representative.

Commercial Title and Legal Address When Opening a Company in Turkey

The first step to register a business in Turkey is to find a suitable trade name for the business. The name must be unique and not offensive. In order for the company name to be unique, the applicant can apply for 3 different name verifications, from which he will select the appropriate one according to the company's requirements. We remind investors that branches must have the same name as the parent company. Another important condition for the company to be accepted as a business established in Turkey is to have a local address. The registered address must be in the city where the company will operate.

If the newly formed company is interested in hiring foreign personnel in Turkey, the procedure can only be done in which case foreign employees receive a work permit. There are two ways to obtain a work permit for foreign employees issued by the Ministry of Labor: with the Ministry of Labor and through Turkish embassies or consulates in the country where the foreign worker is resident. The documents required for the Turkish Consulate or Embassy are as follows:

  • The applicant's passport, which must be expired,
  • A work visa application to be issued to the applicant at that time,
  • One final passport photo and a copy of the employment contract – the prospective employer must send the copy.
  • Mission letter confirming the appointment of the future employee.

In case a company hires a foreign worker, the Turkish employer must submit an online application and the following documents to the Ministry of Labor and Social Security:

  • Work permit application letter;
  • Foreign personnel application form;
  • a balance sheet;
  • Latest profit/loss statement.

The online application must be made to the Turkish Consulate within ten working days at the latest after the foreign employee applies for the position. Foreign workers can be employed in Turkey within the scope of the Regulation on Employment of Foreign Nationals within the Framework of Foreign Direct Investments.

What is the Cost of Establishing a Company in Turkey?

Starting a company in Turkey is not expensive, but the business owner should consider company registration fees, notary fees and the honorary status of the Turkish law firm (if appointed) carrying out the procedure.

How Long Does It Take to Start a Business in Turkey?

It takes about 3 weeks to establish a company in Turkey. In the case of a branch, the procedure takes longer. If you need more information about the procedures he applies, you can contact us.