How to Establish a Business in Turkey for Foreigners
Foreigners who want to set up business in Turkey are subject to Foreign Direct Investments Law No. 4875
Thanks to the economic policies that support foreign investments, foreign nationals can start companies and establish businesses in Turkey just like Turkish citizens.
First step for a foreigner in turkey who wants to establish a business is to determine the type of a company. Company types are divided in two groups in Turkey:
-Natural (real) person companies. (Sole proprietorship)
-Legal Person Companies (capital company)
It is required that foreign investors to set up LLC (LTD ŞTİ) or Joint Stock Companies (A.Ş.) that are classified under Legal Person Companies.
The establishment processes of both are the same.
Competent in business consultancy
Business establishment processes and things to do in Turkey for Foreign Investors:
First of all, the foreign investor must decide what to do in Turkey. There is no obstacle for foreign investors who want to start a commercial business in Turkey and they are subject to the same laws and regulations as Turkish citizens. It may be required for Some professions to obtain Diploma Equivalency certificate from Higher Education Board.
- Companies may be established for only one owner or for multiple partners. Foreign investors can choose a Turkish partner for their company. Whether it is solely foreign investor company or with a Turkish partner, terms and conditions are the same and they all subject to the same commercial laws and regulations. Some investors choose to have a Turkish partner in order to run their businesses in Turkey in a smoother fashion.
- The business field that company will operate should be determined before starting the company set up process. Companies may operate in more than one business field. During the application to establish business NACE codes will be obtained, NACE code is a six-digit code that identifies company’s business field.
- Another step is to come up with a title of the company. Legally, every company must have a unique title. If the title you want to use has been taken by another establishment, you cannot use the same title. Union of Chambers and Commodity Exchanges of Turkey will have the list of all establishments and you can check the availability of desired title against their database.
- Company capital must be determined before filing an application to set up your company. Minimum capital requirement is 10.000,00 TL for LLCs and 50.000,00 TL for Joint Stock Companies. Though, it is recommended for foreign nationals to start their companies with 100.000,00 TL in order to be eligible for work permit applications.
- Companies may be established indefinitely or for a limited time
- A manage will be selected in order to represent the company. If someone outside the company will be selected, a consent form must be drafted.
Company main contract will be prepared according to the information above.
Once the company main contract is ready, an online application at the Central Registration System (MERSIS) under Trade Ministry of Republic of Turkey.
Partners should get their passport translated and notarized while applying to set up a company. Before starting the process at MERSIS, passports of partners must be registered in tax office and potential tax number must be obtained. After this step, information can be entered to MERSİS and start the application. Following steps will be taken in MERSİS registration:
- Choosing the company type
- Company title and address entered
- Passport numbers are entered
- Scope and purpose of the company will be entered
- IF the company has more than one business field to operate, every one of them will be entered according to their NACE codes
- Share of stocks will be determined
- Information of company authorized personnel who will be representing the company will be entered
- Fiscal year will be chosen
- Dividends are determined
- If every information entered is correct, then application will be submitted
- A registration code will be obtained and appointment is made for in person application
After completing the MERSIS process, Declaration of Chamber Registration is filled, Company set up petition and declaration form is filled. Lastly, Workplace Information form will be filled and registration process will be completed at the Trade Registry Directorate.
Establishing Natural (real) person companies (sole proprietorship) for foreigners
Foreign nationals cannot start a real person in a.k.a sole proprietorship companies in Turkey unless they have a work permit. This work permit is to be obtained from Labor and Social Security Ministry after 5 consecutive years of residence in Turkey.
Foreign nationals can give a power of attorney to a consultant in order to set up their companies. With consulting services, process may be handled more smoothly. Boz Consulting, provides this kind of service and establish your company and help set up your business by following up all kind of legal procedures without a hassle.
In addition to its activities in the education sector, Boz Consulting provides consultancy services to investors coming to Turkey from abroad, in line with their needs, and aims to produce innovative and entrepreneurial solutions. Our aim is to support foreign investors in every step, from company establishment in our country to production and service licensing for different sectors. As the reliable solution partner of foreign companies in Turkey, it also provides a multi-faceted benefits to the organizations of which we undertake the consultancy services.