Company Registration in Turkey 2025 (New Laws) | Residency and Costs
Company Registration in Turkey 2024 (New Laws) | Residency and Costs
The investment law in Turkey allows international investors to have similar rights and obligations as domestic investors. The conditions for starting a business and transferring shares are the same as those set for domestic investors, and they can register any type of company specified in the Turkish Commercial Code (TCC) and start their business. Among the advantages of registering a company in Turkey are low registration costs, low tax rates, opening a bank account in Turkey, and the possibility of obtaining short-term and long-term residency in this country.
Therefore, no matter what type of business you want to have, as a national of another country in Turkey, you must legally register your company to conduct economic and commercial activities. Depending on the type of activity, permits, and stages, the cost of registering a company in Turkey can vary greatly.
In Turkey, you can register 7 types of companies, two of which, ANONIM and LIMITED, are the most widely used:
1. Joint Stock Companies (Anonim Şirket): Minimum capital 100,000 Turkish Lira
2. Joint Stock Company (ANONIM): Minimum capital 50,000 Turkish Lira
3. Limited Liability Company (LIMITED): Minimum required capital 20,000 Turkish Lira
4. Cooperative Company (Kooperatif Şirket): Depends on the company’s articles of association
5. Sole Proprietorship (Şahıs Şirketi): Depends on the company’s articles of association
6. Ordinary Partnership (Kollektif Şirket): No minimum capital
7. Limited Partnership (Komandit Şirket): No minimum capital
The cost of registering a company in Turkey in 2024 is diverse and depends on various conditions. Some of the costs that may be required when registering a company in Turkey include:
1. Accounting Fees: The fee for a certified accountant starts from 1500 Turkish Lira, depending on the volume of monthly commercial activities.
2. Office Rental Cost: Office rental cost also may start from 500 USD or an equivalent amount in Turkish Lira, depending on the location.
3. 23% Rental Tax (Stopaj): This cost is paid quarterly.
4. Official Book and Notarization Costs: Variable and depends on the company and its activities.
5. Water, Electricity, Gas, Telephone, Internet Costs: Usually borne by the company.
It is best to contact a local financial or legal consultant for accurate and up-to-date information regarding company registration costs in Turkey.
Some examples of companies that require a license include:
1. Banks: To establish a bank in Turkey, you need a license from the Banking Regulation and Supervision Agency (BDDK).
2. Insurance Companies: A license from the Insurance Supervision Agency (SB) is mandatory to operate in the insurance sector.
3. Independent Audit Firms: A license from the Public Oversight, Accounting and Auditing Standards Authority (KGK) is required.
4. Financial Leasing and Factoring Companies: A license from the Central Bank of the Republic of Turkey (CBRT) and the Banking Regulation and Supervision Agency (BDDK) is needed.
5. Exchange Offices: A license from the Central Bank of the Republic of Turkey is required to operate an exchange office.
6. Companies Operating in Currency Booths: A license from the Central Bank of the Republic of Turkey and the Banking Regulation and Supervision Agency (BDDK) is mandatory.
7. Technology Development Zones Management Companies: A license from the Ministry of Industry and Technology is required.
And so on.
Establishing and operating these types of companies requires legal expertise and legal consultation to ensure that the process, from establishment to dissolution, is carried out correctly and in compliance with the relevant laws.
Investing and registering a company in Turkey has many advantages and opportunities. Some of the main reasons are:
1. Equal Rights and Obligations: The rights and obligations of domestic and foreign investors in Turkey are the same. Foreign investors are entitled to equal rights as domestic investors.
2. Promotion of Foreign Investment: The Turkish government encourages and supports foreign investment by enacting the Foreign Direct Investment Law.
3. Protection of Ownership: Expropriation and nationalization of foreign investments are prohibited in Turkey, unless public interest necessitates it and compensation is paid.
4. Freedom of Currency Exchange: Financial transfers such as net profit, dividends, sales proceeds, liquidation proceeds, compensation for damages, and principal of foreign loans can be freely transferred abroad.
5. Banking Facilities: Banks and private financial institutions offer facilities to foreign investors in Turkey and facilitate the investment process.
6. Geographical Location: Turkey, as a bridge between Europe and Asia and an entry point to global markets, attracts investors and is chosen as a strategic location for international trade.
7. Suitable Infrastructure: Turkey has modern infrastructure and efficient transportation, which is very important for business development.
8. Economic Diversity: Turkey’s economy, due to its diversity in various sectors including agriculture, industry, services, and technology, offers extensive opportunities for investment.
With these advantages, Turkey is considered an attractive destination for investment and trade.
Turkish Economy:
A careful examination of a country’s economic conditions before investing is a fundamental and essential step. This factor will largely determine the success of your investment. Turkey, with its combination of local and industrial sectors, has a dynamic economy that benefits from development in various fields. Turkey has a large market in various economic areas, including agriculture, industries, communications, construction, tourism, and financial services. Despite challenges such as currency fluctuations, the Turkish government has programs to facilitate investment and reforms in investment-related laws.
At the same time, it is always important to closely follow economic changes and developments and, with guidance from local consultants, examine the advantages and challenges of each specific area and region where you intend to invest. This information will help you make better decisions regarding your investments.
Personal Company Registration (Şahıs Şirketi):
This type of company can be registered by a natural person, and only the company’s tax number is issued by the tax office. Personal companies are normally not registered with the Istanbul Chamber of Commerce and do not have articles of association, official gazette publications, etc. Simply put, personal companies are just “company names” and are not actually considered companies. Instead, a commercial tax code is issued for the owner, and the individual pays taxes on their income. It is not possible to obtain residency and work permits through this type of company, and therefore it is not recommended for foreign individuals in Turkey.
Limited Liability Company (Limited Şirket) Registration:
The Limited Liability Company (LIMITED) in Turkey has characteristics and regulations, the most important of which are as follows:
1. Number of Shareholders: The number of shareholders can range from one to 50 people.
2. Minimum Capital: The minimum capital required to establish a Limited Liability Company (LIMITED) in Turkey is 20,000 Turkish Lira.
3. Nationality of Shareholders: Shareholders can be Turkish or foreign nationals, and they can be natural or legal persons.
4. Proportionate Shareholding: Each individual will hold company shares commensurate with their investment amount.
5. Company Registration: Company registration is done at the notary public office and the Turkish Chamber of Commerce.
6. Value of Each Share: The value of each share cannot be less than 25 Turkish Lira.
7. More Than 20 Shareholders: If the number of shareholders exceeds 20, the appointment of a legal auditor is mandatory.
8. Changes and Share Transfers: Any changes and share transfers must be done at notary public offices and approved by 3/4 of the members.
9. Company Manager: The manager of a Limited Liability Company (LIMITED) can be a Turkish citizen or an immigrant of this country who has the right to reside in another country.
These regulations and features are important for establishing and managing a Limited Liability Company in Turkey.
Joint Stock Companies (Anonim Şirket) in Turkey:
A Joint Stock Company in Turkey is formed by one or more shareholders, and unlike many other countries, there is no classification into public and private companies in this country. This type of company can have an unlimited number of shareholders, who can be natural or legal persons. For example, when establishing a branch, the head office can be one of the shareholders of the subsidiary branch. Each shareholder is liable for the company’s debts to the extent of the shares they hold. This type of company provides shareholders with shares to the extent necessary. The minimum initial capital to establish a Joint Stock Company in Turkey is 20,000 Turkish Lira, and you can register this type of company by paying 25% of this amount.
According to Turkish commercial laws, general assembly meetings must be held with the presence of representatives from the Turkish Ministry of Commerce. This system improves the legal and administrative establishment and management of Joint Stock Companies in Turkey. The decision between a personal company and a Limited Liability Company depends on the needs, field of activity, volume and number of personnel, and other factors. Below, we examine the advantages and disadvantages of each:
Personal Company:
-Advantages:
1. Simplicity and ease of establishment and management.
2. Full control over the company and decision-making by its owners.
3. The rights and obligations of the company owners are directly linked to the company.
-Disadvantages:
1. The liability of the company owners for its debts and obligations is unlimited.
2. Financial limitations and difficulty in attracting capital from larger companies.
Limited Liability Company (Limited):
-Advantages:
1. The liability of the company owners is limited to the invested capital.
2. Possibility of attracting capital from different shareholders and investors.
3. Possibility of setting different limitations and conditions in the company’s articles of association.
-Disadvantages:
1. Greater complexity in company management and administration.
2. Need to comply with more specific laws and regulations.
3. Possibility of more limited control by the company owners.
Laws on Company Registration in Turkey in 2024:
According to the previous laws for company registration in Turkey for foreign individuals and immigrants, they could only register a company if one of their partners in the company was a Turkish citizen.
According to the new laws in Turkey, company registration for foreign individuals and immigrants is not restricted, and foreigners can establish companies for themselves without having Turkish partners and have full ownership of it.
To register a company in Turkey, you need to go through several legal steps. The important steps of this process are as follows:
1. Inquiry and Obtaining Investment Permit
This stage is one of the most important parts of the laws for company registration in Turkey. To obtain a permit, it is best to contact an experienced and sworn Turkish lawyer to guide you through this process.
2. Company Registration and Application for Activity Certificate (Lehvası)
After 2 to 3 days of company registration, you can obtain an activity permit, which is known as “برگه لهواسی” (Activity Certificate) in Turkey.
3. Environmental Assessment and Location Inspection
At this stage, it is necessary to evaluate the environmental information related to your company’s activity, and the company’s location must be inspected by Turkish government inspectors. Finally, an activity permit is issued to you.
Depending on the type of your business, these steps may change. For success in this process, always consider consulting with a specialized and experienced lawyer.
