BUSINESS IN TURKEY
Turkey is a large Muslim country with many cultural features, great history, traditions and mental differences. Over the past decades, the Turkish economy has been actively developing, modern infrastructure has been built, and effective reforms, including financial and tax systems, have been introduced. Especially significant GDP growth in the country (about 10 per cent) was recorded in 2010-2011. All this contributed to the formation of a favourable investment climate in Turkey and the influx of businessmen from different parts of the world.
Business in Turkey for foreigners in 2024 still does not lose its relevance, although to a lesser extent than a few years ago. Political and military tension in the state, the threat of terrorist attacks and other negative factors undoubtedly undermine investor confidence and certain risks are present. Nevertheless, the vast territory of Turkey allows you to choose the most optimal place to do business. It is not at all necessary to stop at such large cities as Istanbul or Ankara.
The population of Turkey in 2024 is about 86 million people. For the most part, this is a skilled labour force as well as a potential market. In addition, Turkish goods and services are making steady inroads into European markets. Business immigration to Turkey will allow the entrepreneur to take family members with him, who can get a quality education in Turkish universities or find a job in local companies. Today, Turkey's economy includes not only agriculture, tourism and textiles. Electronics, automotive and petrochemical industries are also actively developing.
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How to open a business in Turkey
Turkish authorities are quite loyal to foreign entrepreneurs in matters of doing business on the territory of the country, that is, the rights and conditions are fully provided on a par with local businessmen. For this purpose in Turkey there is a special law ‘On Direct Investments’, which details the requirements for foreigners to conduct business activities.
For full-fledged business immigration, i.e. moving to the country and obtaining a residence permit, as in the case of regular employment in Turkey, it is necessary to obtain a work permit and open a visa in advance in the Turkish Consulate. The Ministry of Labour and Social Protection of Turkey reviews the documents and makes a decision on issuing a work permit.
Usually the period of consideration of the documentation does not exceed one month. After moving to Turkey, you should apply to the local immigration office within 30 days to obtain a residence permit (TPL) in Turkey. Initially, the residence permit is issued for one year with the right to extend it. After 5 years of continuous residence in the country you can get Turkish citizenship.
Detailed information about the procedure for obtaining a work permit, the list of documents and conditions for doing business in Turkey is available on the official investment portal of Turkey – invest.gov.tr. It should be noted that in order to choose the best option of business immigration you may need the help of specialised agencies or consultants.
For example, more quickly to organise business in Turkey and move to the country, allow such norms of local legislation as special foreign direct investment and key personnel. In the first case it is required to invest in a Turkish company a minimum of 435 thousand dollars and officially employ 250 workers. The key personnel can be senior managers or company managers.
Procedure and cost of company registration in Turkey
In the rating of Doing Business agency, Turkey ranks 33rd out of 190 countries in terms of accessibility of starting and doing business. This is not the best indicator compared to developed European countries. Provided that the documentation is prepared, the process of registering a business in Turkey can be carried out within a week. Let's consider the main steps.
Registration of the charter and memorandum of association of the company in a special system MERSIS. It is done online and free of charge within one day.
Preparation and notarisation by a notary of the official documentation of the company, including information about the owners and specimen signatures. The cost of notarisation of one sheet of articles of association is 140 Turkish Liras, the signature of the managing director is 65 liras. The procedure is carried out within a day.
Issuance of a personal tax payer identification number. This procedure is necessary for opening a bank account and paying the authorised capital.
Depositing 0.04% of the authorised capital to the special account of the Antimonopoly Department of the Central Bank of Turkey.
Opening a deposit account in a local bank and depositing a minimum of 25% of the share capital, the remaining amount is allowed to be paid within the next two years.
Submission of the application and registration in the Commercial Register. The procedure may take a few days. After registration, information about the new company is automatically sent to the tax and social security authorities and an advertisement is published in the local newspaper.
Registration by a public notary of the company's legal books.
At the last stage, the company office is visited by a tax officer who draws up an audit report.
Forms of ownership for a company in Turkey
According to Turkish laws, namely the Turkish Commercial Code, foreign businessmen have at their disposal 5 forms of ownership for business registration, in addition, it is allowed to open representative offices and branches of foreign companies. The most popular forms are considered to be:
Limited Liability Company. The number of owners varies from 2 to 50 both individuals and legal entities. Liability is limited to contributions to the authorised capital, the minimum amount of which must be at least 10 thousand Turkish Liras. There is no provision for issuing certificates to the owners of shares.
Joint Stock Company. Requires a minimum of 5 owners both natural and legal persons. The authorised capital is equal to 50 thousand Turkish Liras. It is managed by the General Assembly, the Board of Directors and the Supervisory Board. Special certificates are issued to the owners of the shares.
In addition to the above two forms of ownership, foreigners can register a collective, limited and co-operative company in Turkey.
Taxes in Turkey
Tax legislation in Turkey has undergone significant reforms and today it meets international standards, as well as being transparent and quite effective. Foreign investors have equal rights with Turkish businessmen in the tax field.
Rates of main taxes in Turkey in 2024
Corporate income tax – 20% (in financial services – 22%).
Tax on dividends – 15%.
VAT. Depending on the type of activity there are rates – 1%, 8% and 18%.
Income tax. Progressive rate depending on income is from 15 to 40%.
Property tax varies from 0.1 to 0.6%.
Turkey has signed double taxation agreements with many countries of the world. There are special economic zones in different regions, investments in which are exempt from many types of taxes, such as VAT.
Business visa to Turkey
Despite the fact that many foreigners have the right to visit Turkey temporarily (up to 60 days) for tourism and business purposes without visa requirements, for long-term business in Turkey it is necessary to obtain a business visa, which will allow you to obtain a residence permit in the future. To do this, you should leave an online application on a special website konsolosluk.gov.tr, as well as apply to the diplomatic mission of Turkey in your country and provide a list of required documentation.
Documents for a business visa to Turkey
Completed visa application form.
Copies of the pages of the foreign and civil passport with personal information.
Two colour photographs of the established sample (5x6 cm).
Official and notarised invitation from a Turkish company. Depending on the situation, additional information about business ownership in Turkey may be required.
Payment of the visa fee ($50).
Usually the period of issuing a business visa to Turkey does not exceed 2 months, sometimes extension up to 4 months is possible.
