07 Apr 2020
05 Feb 2021
Company Incorporation in Turkey: For Foreigners
To establish a company in Turkey is an uncomplicated process especially after the issuance of the law that allows foreign investors to establish a company in Turkey and transfer shares with all rights as in the case of Turkish investors. The process of investing in Turkey has become easier for foreigners as the investor is allowed to establish his company in all means followed in the Turkish commercial law which meets all international investment standards. All these reasons caused an increase in investment rate and made the investment process in Turkey attractive to all investors of different nationalities, including Arab nationalities especially after the rise in the number of the Arabs in Turkey as a result of the asylum movements and the arrival of investors from all Arab countries with high proportions from the Arab Gulf countries, Iraq and Syria.
Conditions and steps for establishing companies in Turkey
There are several types of companies that can be established in Turkey, which differ from one another depending on the company size. However, no matter what type of company you want to establish in Turkey, there are major conditions that must be followed and they are as follows:
When establishing a company in Turkey, the investor must obtain security approval from the relevant authorities in addition to having a valid translated passport certified by the Turkish notary and obtain the tax number from the relevant authorities.
The Steps for establishing a company in Turkey:
The steps for establishing a company in Turkey for foreigners and the conditions for investing in Turkey starts with obtaining a company headquarter, which is mandatory to register a company in Turkey. The second step is to determine the capital of the company, which is an amount of hundred thousand Turkish lira as a minimum for investment in Turkey, after establishing the company, investor has to apply for the work permit. The third step includes contract preparation in which all the information is mentioned: the name of the company director, its headquarters, the address and the activity that you will do, the size of the capital, etc. Akrakom would help you out at this stage in preparing the contract and providing an appointment with the legal accountant who must be present, he will be the spokesperson for your company in front of the Turkish state and has a primary function in recording all expenses, purchases and payments in state centers monthly. The fourth stage is obtaining a tax number in the Tax Administration, where you will obtain a tax number after ratifying the incorporation contract, then you will get an account number in the bank in the name of your company, where our office will be ready to provide all the services required to open the account and the final registration of the company in the Chamber of Commerce, and the approval of your company signature in front of the Turkish notary, and by this, we will have completed the basic steps for establishing a company in Turkey.
What about obtaining an investor residence in Turkey?
As we mentioned earlier, investors can get a residence in Turkey after they set up a company with a capital of 100 thousand Turkish liras, this residence differs from touristic residency and whoever owns it for more than five years has the right to apply for Turkish citizenship. According to the new Turkish law, the owner of this residence owns all the rights of Turkish investors, as he has the right to attend business meetings and work with Turkish trade organizations.
What about the tax law?
It is necessary to be aware that there is nothing in Turkey called a capital tax, as all taxes including rental tax and annual tax can only reach up to 2,500 TL, whether the capital is ten thousand TL or one hundred thousand TL.