How to Establish a Company in Türkiye

Investors' question: How to Establish a Company in stablish a Company in Türkiye

Living in Türkiye has many advantages but how is it for those who want to establish their own business? Does the Turkish Investment Law pave the way or block it for international investors? Are its stages complicated? We’ll answer all these questions in this article. For many people, starting a life in another without having a business or a proper job is impossible. That’s why knowing the possibility of opening a business is one of the main factors that makes another country an ideal destination for a new life and expanding your business. There's no obstacle for foreign investors to establish a company in Türkiye, according to the Foreign Direct Investors Law, No. 4875 because it promises freedom of investment opportunities and equal rights and treatment. As a result, foreigners can establish any type of company under Turkish Law. If you're an international investor interested in establishing a company in Türkiye, during the registration process, you must pay at least 25% of the founding capital specified in the Articles of Association. The remaining part has to be paid to the company bank account within two years after the registration of the company.

Companies that Need a Pre-approval from the Ministry

If the company you intend to set up is in one of the following sectors, before the establishment of your company and Articles of Association, you need a pre-approval from the ministry:

• Insurance companies
• The joint stock company established as holdings
• Companies that operate exchange offices
• Banks
• Financial leasing companies
• Factoring companies
• Consumer finance and card services companies
• Independent audit companies
• Surveillance companies
• Technology development zone management companies
• Companies that establish and operate the Free Trade Zone
• Asset management companies
• Companies dealing with general warehouse
• Companies engaged in licensed warehousing of agricultural products
• Commodity exchange companies

How to Establish a Company in Türkiye

Here are the stages of establishing a company in Türkiye. Bare in mind that the majority of these steps will be done with the supervision and assistance of a sophisticated lawyer:

1. The preparation of the company's articles of association
2. Sending the Articles of Association via MERSIS (The Central Registry Number System)
3. Arrangement and notarization of the documents
4. Obtaining a potential tax number for the company
5. Depositing a certain part of the capital to the Competition Authority’s bank account
6. Depositing and documenting a certain part of the capital in the company’s bank account
7. Application to the Trade Registry Office for registration procedures
8. Certification of some legal books related to the company
9. Requesting a company establishment statement from the tax office
10. Arrangement of signature circular
11. Transferring some company-related documents to the e-TUYS system
12. Other things to do according to the type of company and purpose of the activity

These are the most basic stages in the company establishment of foreign investors.

Documents Required for the First Application to the Trade Registry Office

Required Documents for Initial Application to the Trade Registry Office Document Properties Company contract In the presence of TSM staff or Notary public an original sum signed by all the founders four copies Passport copies of each shareholder If the foreign partner is a natural person, two copies are required. Detailed information about current status and signature activity document The legal entity registered as a partner of the investor must be regulated by the authority in his country. Approval of legal entity shareholders for the establishment, decisions of the authorized corporate authority Any special conditions in the establishment of the company conditions (company name, field of activity, etc.) should be specified in the decisions. The name of the natural person to act on behalf of the legal person and the decision containing the assignment Required when a legal entity is appointed as a board member Notarized copy of the power of attorney authorizing the proxies who will follow the application in the presence of authorized TSM and other official authorities Required if the process is to be followed by proxy Signature statements Must be in two notarized copies Copies of the identity cards of the company directors must be a notarized copy

Advantages of Establishing a Company in Türkiye

To encourage international investors and attract more capital to Türkiye, certain privileges are granted to foreign investors, such as:

• Freely transfer their profits and some other income abroad.
• In case you’d like to hire non-Turkish employees, the process of gaining work permission for your staff will be easier than for national companies.
• Having the opportunity to open a liaison office and branch.
• Finally, Türkiye has many international agreements protecting the rights of foreign investors. party.
• Ease of work permit is provided to these companies in terms of employment of foreign personnel.
• Reports of international value institutions are taken as the basis for the determination of their non-cash capital.
• As we mentioned above, there are opportunities to open a liaison office and branch.
• Apart from this, there are several tax advantages, which we will discuss below.
• Finally, Türkiye has many international agreements protecting the rights of foreign investors.

FAQs about Establishing a Company in Türkiye

1- How long does it take for foreigners to establish a company in Turkey? It generally takes 2-7 days for foreigners to establish a company in Türkiye. The type of company, preparation of the articles of association, the status of the notary and registration procedures, permission from the ministry if necessary are factors that may extend or shorten this period. 2- Is it possible for foreign companies to open a company in Türkiye? Just like foreign natural persons, it is possible for foreign companies to open a company in Türkiye. In this respect the procedure is almost the same as the one we mentioned above. 3- Is it possible for foreigners to establish a company without coming to Türkiye? Yes. The foreign person needs a lawyer who is expert in corporate law and preferably speaks English. Such an expert can carry out all establishment procedures upon the issue of a Power of Attorney. 4- Can a foreigner open a Sole Proprietorship? A foreign investor can open a sole proprietorship in Türkiye, but without the foreign person's work permit, it is not possible to open the company. Only a residence permit is not enough, and a residence permit for 5 years is required. In case of applying for a self-employment permit after being in Türkiye, a sole proprietorship can be installed. After the application, the person is first given an independent work permit application document. A self-employment permit will be granted after the application is made to the Ministry within 3 months with the document. Not only Türkiye’s geopolitically ideal situation, but its investment laws provide foreign investors with support and opportunities to widen their business horizons. In case you have any questions regarding establishing a company and buying a house to get Turkish citizenship, don't hesitate to contact us. Investo Global's Investment Experts are 24/7 ready to give you FREE consultation!

Published 3 November 2022. Figures, rules and timelines change — confirm the current position with an adviser before you act on anything here.