COMPREHENSIVE GUIDE TO COMPANY FORMATION IN TURKEY » Ongur Partners
27 December 2024

COMPREHENSIVE GUIDE TO COMPANY FORMATION IN TURKEY

Company Formation in Turkey. Turkey has long been a prime location for business ventures due to its strategic position, vibrant economy, and access to global markets. Whether you’re an entrepreneur looking to expand your operations into new territory or an investor seeking opportunities, understanding the process of company formation in Turkey is crucial. In this guide, we’ll take a detailed look at the process of setting up a business in Turkey, the associated costs, the role of company formation agents, and other essential considerations.

Company Formation in Turkey

Company formation in Turkey is a relatively straightforward process, but it requires a thorough understanding of the legal framework and local regulations. The Turkish government has made several reforms in recent years to attract foreign investors, providing a more business-friendly environment. The most common business structures for foreigners are limited liability companies (LLCs) and joint-stock companies (JSCs). Each has its own benefits depending on the type of business and level of investment.

The general procedure involves registering the company with the Trade Registry Office, obtaining necessary tax identification numbers, and fulfilling certain legal and financial requirements. The minimum capital required varies depending on the company type, but in general, setting up a limited liability company requires a minimum of TRY 10,000 (approximately USD 500). The procedure typically takes a few weeks, depending on how quickly the documentation is completed.

Company Formation Agent in Turkey

While setting up a business in Turkey is possible to manage on your own, many foreign investors prefer to hire a company formation agent in Turkey. These professionals assist in navigating the complex bureaucracy, ensuring that all legal and regulatory requirements are met. Company formation in turkey agents  are well-versed in the local business laws, tax regulations, and required documentation.

A company formation agent in Turkey can offer several key services, such as:

  • Assisting with the selection of the appropriate business structure (LLC, JSC, or others).
  • Handling the application process with the Turkish Trade Registry.
  • Managing the legal and administrative aspects, such as drafting articles of association.
  • Arranging the required licenses and permits for specific industries.

By using a company formation agent in Turkey, you reduce the risk of errors and delays in the registration process. The expertise and local knowledge provided by these agents can save you significant time and effort.

Company Formation Agents in Turkey

There are numerous Company formation in turkey that specialize in helping foreigners set up businesses. These agents offer tailored services depending on the type of business you wish to establish, ensuring compliance with Turkish laws while making the process smoother and more efficient.

Some of the top benefits of working with experienced company formation agents in Turkey include:

  • Expert Guidance: Company formation agents help you understand the nuances of Turkish business laws, making it easier to select the right business structure.
  • Document Preparation: These agents prepare and submit all required documents to the relevant authorities, ensuring that no steps are overlooked.
  • Opening Bank Accounts: In many cases, foreign investors are required to open a Turkish business bank account. Company formation agents can facilitate this process.
  • Ongoing Support: Post-formation support, such as tax consultation and bookkeeping, can also be provided by agents, helping your business run smoothly after registration.

Company Formation in Turkey Cost

The cost of company formation in Turkey can vary depending on several factors, including the type of company, the complexity of the setup, and whether or not you hire professional services. On average, company formation in Turkey costs between TRY 1,000 to TRY 5,000 (USD 50 to USD 250), excluding other associated fees.

The main costs involved in company formation include:

  1. Notary and Registration Fees: These are necessary for official documentation and registering the business with the Turkish Trade Registry.
  2. Capital Requirements: The capital requirement varies depending on the type of company. For a limited liability company (LLC), the minimum required capital is TRY 10,000. For a joint-stock company (JSC), it is typically higher.
  3. Service Fees for Agents: If you hire a company formation agent in Turkey, their service fees can vary depending on the package you choose, which typically ranges from TRY 2,000 to TRY 10,000.
  4. Other Costs: Additional costs may arise for obtaining licenses, setting up a business address, and paying for legal consultations.

Cost of Company Formation in Turkey

The cost of company formation in Turkey is relatively affordable compared to many other European and Middle Eastern countries. The total expenses involved in setting up a business will depend on the company structure, the number of partners, and whether professional services are engaged.

For example, a limited liability company (LLC) typically requires a minimum capital of TRY 10,000. However, if you use a company formation agent, you will need to factor in additional fees for their services. These services can range from document preparation to handling the legal procedures with the Trade Registry.

It’s important to remember that the initial formation cost is just one aspect of doing business in Turkey. Other ongoing costs, such as tax payments, accounting services, and employee salaries, should also be considered in your overall budget.

Formation Company in Turkey

A formation company in Turkey refers to businesses or agencies that specialize in helping individuals or organizations set up their new ventures in the country. These companies typically provide end-to-end solutions for both local and foreign investors, covering everything from legal registration to finding office spaces and offering post-formation support.

Engaging a formation company in Turkey ensures that all the processes are completed quickly and accurately. These companies understand local customs, regulations, and the practical steps involved in establishing a business in Turkey.

New Company Formation in Turkey

New company formation in Turkey follows a clear set of steps to ensure compliance with local laws. While the process may seem daunting at first, the system is designed to be accessible for both Turkish nationals and foreign investors. The steps to follow for new company formation in Turkey are:

  1. Choosing a Business Structure: This is one of the most crucial steps. Foreigners typically opt for an LLC or JSC, with each having distinct benefits and requirements.
  2. Registering the Company Name: The company name must be approved by the Turkish Trade Registry Office.
  3. Drafting the Articles of Association: This is a key legal document that governs how the company will be run.
  4. Opening a Bank Account: You’ll need to deposit the required capital into a Turkish bank account before final registration.
  5. Final Registration: Once all documentation is in place, the company will be registered, and you can begin your operations.

While setting up a new company formation in Turkey can take time, it is streamlined and straightforward if done with the help of professionals.

How Much Does It Cost to Start a Business in Turkey?

The overall cost of starting a business in Turkey can vary depending on the nature of your business and the type of company you want to form. On average, setting up an LLC might cost between TRY 5,000 to TRY 10,000, depending on additional services such as legal advice or using a company formation agent.

For those planning on starting a more complex business like a joint-stock company, the costs can rise significantly due to the higher minimum capital requirements. However, Turkey’s business setup costs are generally competitive compared to other countries in the region.

Cost of Company Formation in Turkey with One Partner

If you’re planning to set up a company with only one partner, such as a sole proprietorship or a single-member LLC, the costs are generally lower than those for companies with multiple shareholders. In the case of a limited liability company with one partner, the minimum capital requirement remains at TRY 10,000. The overall costs, however, will depend on whether you choose to use a company formation agent or handle the registration yourself.

Hiring an agent for a single-member company formation is optional but can help ensure the process goes smoothly. Fees for agents may range from TRY 2,000 to TRY 5,000, depending on the complexity of the setup.

Can a Foreigner Set Up a Company in Turkey?

Yes, foreigners can set up a company in Turkey. In fact, Turkey is increasingly becoming a popular destination for foreign investment. There are no specific restrictions on foreign ownership, and foreigners can fully own and manage a company in Turkey.

However, there are certain legal requirements to meet, such as registering with the Turkish Trade Registry, obtaining a tax identification number, and opening a Turkish business bank account. It is advisable for foreign investors to consult a local legal advisor or company formation agent to ensure compliance with all necessary regulations.

How Do I Set Up a Limited Company in Turkey?

Setting up a limited company (LLC) in Turkey involves several key steps:

  1. Select a Company Name: Choose a unique name for your LLC and ensure it is available for registration.
  2. Prepare Documentation: This includes your passport or ID, proof of address, and any relevant permits or licenses.
  3. Deposit the Required Capital: The minimum capital requirement for an LLC is TRY 10,000.
  4. Register the Company: Submit all the necessary documents to the Turkish Trade Registry Office.
  5. Obtain Tax and Social Security Numbers: You must register with the tax office and obtain social security numbers for employees.

The entire process can be completed in about one to two weeks if all documentation is in order.

How Long Does It Take to Set Up a Company in Turkey?

The time it takes to set up a company in Turkey typically ranges from one to three weeks. However, the exact time depends on how quickly you can gather the required documents, open a business bank account, and complete any additional legal formalities. If you hire a company formation agent, the process can be expedited.

Which Business Is Most Profitable in Turkey?

The most profitable business sectors in Turkey vary, but some of the top industries include:

  • Construction and Real Estate: Turkey’s booming real estate market has attracted significant foreign investment in turkey.
  • Tourism and Hospitality: With its rich history and cultural heritage, Turkey is a top tourist destination.
  • E-commerce: Online shopping has grown exponentially in Turkey in recent years.
  • Food and Beverage: Turkish cuisine is globally recognized, and businesses in this sector continue to thrive.

How Much Bank Balance Is Required for Turkey Business Visa?

To apply for a business visa in Turkey, you generally need to show that you have a minimum bank balance of around USD 1,500 to USD 2,000. However, this amount may vary depending on the nature of your business and your visa type. It’s important to consult with Turkish consulates or embassy staff for specific requirements.

Company Formation in Turkey with Ongur Partners

Turkey is a dynamic business hub that continues to attract foreign investors and entrepreneurs due to its strategic location, growing economy, and ease of doing business. For those looking to establish a company in Turkey, Ongur Partners stands out as a trusted firm offering expert services in company formation. This article provides an overview of the process of company formation in Turkey, focusing on the role of Ongur Partners in facilitating this journey.

Why Choose Ongur Partners for Company Formation in Turkey?

Ongur Partners is a leading firm specializing in how to open a company in turkey and legal services in Turkey. The firm offers comprehensive support to local and foreign entrepreneurs who want to establish a business in Turkey. By working with Ongur Partners, business owners gain access to professional advice and a seamless process for setting up their companies.

Some key reasons to choose Ongur Partners for company formation in Turkey include:

  • Expert Legal Knowledge: Ongur Partners has a deep understanding of Turkish business laws and regulations, ensuring that your company complies with all legal requirements.
  • Comprehensive Service: Ongur Partners offers a full range of services, from company registration and tax number applications to obtaining work permits and legal consultations.
  • Custom Solutions: The firm tailors its services to meet the specific needs of each client, helping businesses of all sizes and industries navigate the setup process smoothly.
  • Multilingual Support: As many foreign investors are involved in company formation in Turkey, Ongur Partners provides support in multiple languages, making the process accessible for non-Turkish speakers.

The Process of Company Formation in Turkey with Ongur Partners

Setting up a company in Turkey involves several steps, which can be simplified with the help of Ongur Partners. Here’s an outline of the process:

1. Choosing the Right Business Structure

The first step in company formation in Turkey is selecting the most appropriate legal structure. Foreigners often opt for a Limited Liability Company (LLC) or a Joint Stock Company (JSC). Ongur Partners helps clients assess the benefits of each option, considering factors such as the number of partners, liability concerns, and business goals.

For most small to medium-sized businesses, an LLC is the most common structure, requiring a minimum capital of TRY 10,000. Ongur Partners ensures that the company’s structure aligns with the client’s business strategy and local regulations.

2. Company Name Reservation and Approval

Once the company structure is decided, the next step is choosing a name for the business. Ongur Partners assists clients in checking the availability of the company name with the Turkish Trade Registry. The firm also handles the reservation and approval process, ensuring that the chosen name complies with Turkish legal requirements.

3. Preparation of Documents

Ongur Partners prepares all the necessary documentation for company formation, including the Articles of Association and other legal documents required for registration. These documents define the company’s operational structure, shareholder responsibilities, and capital allocation. Ongur Partners ensures that all legal documents are drafted correctly to avoid delays or complications during the registration process.

4. Bank Account Setup and Capital Deposit

For LLCs, the Turkish government requires a minimum capital investment of TRY 10,000. This capital must be deposited into a Turkish bank account before the company can be registered. Ongur Partners helps clients open a business bank account in Turkey, facilitating the deposit of capital and ensuring compliance with the necessary banking regulations.

5. Company Registration

With all documents in place and the capital deposited, Ongur Partners submits the required paperwork to the Turkish Trade Registry. The firm manages the entire registration process, ensuring that your company is legally recognized in Turkey. Once the registration is complete, the company is issued a trade registration certificate, which is essential for conducting business legally in Turkey.

6. Obtaining Tax Identification Number and Social Security Registration

Every business in Turkey needs to register for a tax identification number (TIN) with the Revenue Administration. Ongur Partners handles this registration process on behalf of the client. Additionally, if the company will have employees, Ongur Partners helps with the registration of social security and health insurance requirements with the Social Security Institution (SGK).

7. Post-Formation Services

After the company is successfully established, Ongur Partners continues to offer a range of post-formation services, including accounting, tax consulting, and legal support. These services ensure that your company stays compliant with Turkish laws and regulations while focusing on business growth.

Key Benefits of Working with Ongur Partners for Company Formation

1. Efficiency and Speed

Setting up a company in Turkey can be a time-consuming process, especially if you’re unfamiliar with the local bureaucracy. Ongur Partners streamlines the company formation process, ensuring that all necessary steps are completed efficiently and within the required timeframes. Their expertise allows them to anticipate and address potential challenges, significantly reducing the time it takes to get your business up and running.

2. Cost-Effective Services

Ongur Partners offers competitive pricing for company formation services in Turkey. While the cost of setting up a company can vary depending on the complexity of the business and the services required, Ongur Partners provides transparent pricing and helps clients minimize additional expenses. They can advise clients on the most cost-effective options while ensuring full compliance with Turkish laws.

3. Expertise in Taxation and Legal Matters

Navigating the tax system and legal requirements in Turkey can be challenging for foreign investors. Ongur Partners offers valuable guidance on how to structure your business to optimize tax liabilities and ensure compliance with local regulations. They also provide legal services to help resolve any issues related to contracts, disputes, or other legal matters.

4. Ongoing Support

The support doesn’t end after your company is formed. Ongur Partners offers ongoing services, such as bookkeeping, tax returns, auditing, and more, ensuring that your business runs smoothly. Their team of professionals is always available to assist with any legal or administrative challenges you may encounter as your business grows.

Company Formation Costs with Ongur Partners

The cost of company formation in Turkey can vary depending on various factors, including the type of business, the legal structure, and the specific services required. While the minimum capital requirement for an LLC is TRY 10,000, additional costs arise for professional services such as those provided by Ongur Partners. These costs typically cover:

  • Company Registration Fees: This includes government fees for registering the company with the Trade Registry.
  • Legal and Administrative Fees: Ongur Partners charges a fee for preparing legal documents, articles of association, and handling the registration process.
  • Bank Account Setup and Capital Deposit: While the bank deposit is a requirement, Ongur Partners also helps with the logistics of opening the account and depositing capital.
  • Post-Formation Services: These may include accounting, tax consultation, and other ongoing legal services.

Ongur Partners offers customized packages based on the needs of the client, helping you get the best value for the services you require.

Conclusion

Company formation in Turkey is a practical and accessible process, especially with the help of a reputable firm like Ongur Partners. Whether you are starting a new business or expanding your existing operations into Turkey, Ongur Partners offers the expertise, guidance, and local knowledge necessary for a successful setup. From the initial planning stages to post-formation support, Ongur Partners ensures that your company is set up quickly, legally, and efficiently, allowing you to focus on growing your business in one of the world’s most exciting markets