Obtaining Residency Through Company Registration in Turkey
To register a company in Turkey, long-term residency in this country is not required. You can live outside Turkey and have an active company in your name in Turkey. After completing all official company registration steps, you can apply for a work permit in Turkey and subsequently obtain insurance for yourself. Note that after 5 years, you can apply for Turkish permanent residency and subsequently obtain Turkish citizenship. So far, it is not possible to apply for residency solely by registering a company. From day one, you can obtain a work permit and professional activity for the company you have registered. Also, you can apply for a work permit after 6 months of residency in Turkey. Iranians can stay in Turkey twice a year, each time for 3 months, without a visa.
Company registration in Turkey and residency are two important and dependent issues that affect the working and living conditions of individuals and investors. Considering that company registration in Turkey does not automatically grant residency, according to the Turkish immigration laws, upon starting activities and registering a company, a one-year short-term residency is granted to the CEO and their family. Note that many factors such as the registered company’s capital, the amount of taxes paid, the company’s history, having a specific plan, commercial objective, commercial invitation letter, etc., are influential in the matter of residency.
Given that obtaining residency through company registration in Turkey is very costly, it is necessary to consult with relevant experts in this regard. In this matter, it is suggested to apply for residency through company registration via obtaining a business visa and then submit your residency application. Note that company registration can also lead to obtaining Turkish citizenship and nationality.
Steps and Laws for Company Registration in Turkey
The steps for company registration in Turkey are divided into 13 main stages, which include the following:
- Drafting the articles of association and specific forms for company establishment
- Referring to the Tax Office and obtaining a tax number for the partners
- Obtaining the company’s tax number
- Printing in the Official Gazette
- Verification of signature specimen and power of attorney at the notary public office
- Filling out the Tax Office form and submitting the relevant documents to the said office
- Inspection, review of documents, and confirmation of the company address by Tax Office inspectors
- Obtaining a business license
- Certification of accounting books
- Opening a company bank account
- Introducing an accountant
- Verification of the articles of association at the notary public office
- Referring to the Chamber of Commerce for company registration
In the final stage, determining the company office address and drafting the lease agreement are also carried out. Providing the lease agreement for the company’s location is mandatory in the first registration step. Furthermore, partners must find and rent a company office in Turkey before any action, or by agreement of the parties, the executor should proceed with renting the company’s location.
Time Required for Company Registration
From zero to hundred, the time for registering a Limited and Anonim company in Turkey is about 5 business days.
In this regard, it is important to know that contrary to the claims of some institutions, you do not need a lawyer to register a company in Turkey, and you can do the company registration yourself with the help of financial and legal consultants. Our team at Atlloo company provides the necessary preparations as much as possible before the individual’s presence in Turkey, so that the individual’s presence in Turkey is required for a minimum of 3 business days.
Required Documents for Company Registration in Turkey
To start the company registration process, please ensure you have at least two 4*3 color photos with a light background and the original passport with a validity of at least 6 months. Also, determine the share amount of each partner and specify the role of each partner in the company. Also, specify the company’s field of activity, the exact address, postal code, and phone number. For choosing the company name, please list at least 5 suggested names. Also, specify the members of the board of directors and the general manager and introduce the authorized signatory person.
To continue the company registration process, issue a power of attorney for carrying out related company registration matters. The declared minimum capital should not be less than 10,000 Turkish Lira, about a quarter of which will be blocked in the company’s account for one month. Please provide all the above information accurately and with the necessary neatness for the company registration steps.
How much is corporate tax in Turkey?
After completing the company registration steps, it is time for the tax payment process. The tax payment period may be quarterly or monthly and varies based on the company’s activities. The company accountant is responsible for reviewing expense and income invoices, and after analyzing the company’s net profit, an 18% tax is determined on the company’s income in that period.
The company accountant is obligated to determine the amount of income based on performance and related invoices, and any amount entered into the company’s account that is not subject to tax is exempt from tax payment. This process is carried out in accordance with the relevant tax laws. Please carefully consider these points and take the necessary actions in the company’s tax payment stages.
Company Maintenance Costs in Turkey
You will also have costs for company maintenance after registration.
- These costs include office rent, accountant fees, and annual book and audit fees.
- You also need to pay a monthly fee of 3000 to 3500 Turkish Lira for the accountant.
- You can also use shared offices to reduce costs, in which case you will have very low office rent costs.
- The cost of virtual or shared offices starts from 500 Turkish Lira per month.
- Incorrect company registration and wrong procedures can create many problems and debts for you and double the final costs.
- Also, incorrect performance by an accounting firm or an accountant in this regard can cause you tax problems, etc.
- Furthermore, after receiving amounts from such institutions, they receive other amounts from you during the work for performing other tasks, and you are forced to pay them.
- For this reason, choosing the operating company and the accountant, who must have a license for these services, is the most important part of company registration in Turkey.
Also, Stopaj tax, or rental tax for shared offices, due to their low rent, is determined at a limited amount and is paid quarterly by the company manager to the Tax Office. This is different from rental income tax, and the responsibility for paying it rests with the tenant. The Stopaj rate is equal to 20% of the monthly office rent. Also, corporate tax provides 25% of net income. This amount is calculated by the company’s accountant (muhasebeci) based on all expenses and income and then submitted to the Tax Office.
Employment of Turkish Personnel:
You can carry out your company registration process in a way that does not require the employment of Turkish personnel. With this company registration, Turkey grants you legal activity permission. One of the most important advantages of this work permit is the possibility of obtaining residency for the CEO and family members. However, it is recommended that if your main goal of registering a company is to obtain residency, you do not choose this method solely for this purpose. For example, from an economic perspective and the need to hire Turkish employees in the company, it may not be cost-effective. It should be noted that obtaining residency is not possible for companies that do not have any activity yet and are newly established, contrary to the advertisements you may have seen in this regard.
Obtaining a Permanent Turkish Corporate SIM Card:
Note that mobile phone lines in Turkey are canceled three months after activation, provided that the person associated with it does not have Turkish residency.
Business License Services:
One of the advantages of a company, which we mentioned above, is the insurance of the company manager, which is known as “Bağkur” in Turkey.
By paying monthly insurance premiums, you can benefit from SGK insurance, which is a state insurance. This insurance provides the best health coverage, and you can use medical services for free in Turkey. Also, by continuously paying this insurance and extending it every year, you can benefit from Turkish retirement services after 25 years.
Inquiring About Companies in Turkey
Yes, the Turkish government has provided a system for viewing and inquiring about official companies. You can inquire about any registered and official company using this system.
By going to the link below and typing the company name in the “UNVAN” field and entering the security number, you can view the company’s information and registration number.
https://www.ticaretsicil.gov.tr/view/hizlierisim/unvansorgulama.php
Final Word:
In a summary of the article, the most important points necessary for obtaining Turkish residency through company registration were mentioned. To start your business without problems in this country, it is recommended to utilize the consulting services of Atlloo company. The consultants of this company will examine your situation and provide you with the best options.
