Company Incorporation Turkey
Turkey offers a natural gateway to three of the world’s largest and most dynamic markets: Europe, Asia and the Middle East. So it is little wonder that its economy is booming, increasing by 34% over the four years leading up to 2005, and still growing at more than 5% per annum.
Add to this a huge domestic market, an ambitious labour force, and low wage costs, and you can see why Turkey is emerging as an essential centre for foreign investors seeking to set up business.
Company Formation FAQs
Is Turkey a safe base for foreign investment capital?
It is now. The Turkish economy suffered serious difficulties during the 1990s, but the business environment was transformed in 2001 when wide-ranging economic reforms were introduced. Then came the Foreign Direct Investment Law in 2003.
Since then the number of foreign companies in Turkey has more than doubled. And with Turkey currently negotiating terms for entry into the EU, the future looks good for foreign investors considering a company registration Turkey project.
How easy is it to set up business in Turkey?
Few countries do it faster. You can open a Turkish company inside a day, provided you have the correct documentation to hand. Our specialists are ready to guide you through the process.
All you need to do is contact us and we can have your new company up and running within hours. Talk to our company formation specialists now.
What are the main forms of company formation in Turkey?
The two most popular forms of company to incorporate in Turkey are:
- Limited Liability Company (LS)
- Joint Stock Company (AS)
How much share capital is required for a Limited Liability Company (LS)?
The minimum share capital for a Limited Liability Company is YTL 5,000 (€2,700), 25% of which should be paid up.
What other requirements are there for a Limited Liability Company (LS)?
- Minimum of one shareholder
- Shareholders may be Turkish or foreign nationals
- No need for audited accounts if fewer than fifty shareholders
How much share capital is required for a Joint Stock Company (AS)?
The minimum share capital for a Joint Stock Company is YTL 50,000 (€27,000), 25% of which should be paid up.
What other requirements are there for a Joint Stock Company (AS)?
- Minimum of five shareholders (no nationality requirement)
- Board of Directors (minimum three directors)
- All AS companies are required to have their accounts audited
What other types of Turkish company are available?
The other main forms of company incorporation Turkey are:
- Commandite Company – not all shareholders have limited liability
- Collective Company – limited liability, only open to real persons
After company registration, how easy is it to recruit staff?
73 million people live in Turkey, and much of the working population is semi-skilled. Unemployment is relatively high at around 10%, but the country’s economic renaissance has created an urban professional class, ambitious and well educated.
This is the sector from which foreign companies tend to recruit. Our recruitment specialists are ready to answer all your questions on staffing and labour laws.
What is the regulatory environment like for those considering company formation in Turkey?
Turkey has committed itself to a liberal business environment, reflected in the introduction of the Foreign Direct Investment Law in 2003. Corporation Tax is now 20% and investor protection conforms with international standards.
The 2003 law scrapped many of the regulations that had impeded foreign investment in the past, such as the requirement that foreign companies seek ministerial approval before formation.
Are there financial incentives available for those considering company registration in Turkey?
Turkey has a wide range of financial incentives for foreign investors. Major investors are exempt from customs duties and/or VAT on plants and equipment, while there are substantial additional incentives for companies that invest in less-developed provinces, free trade zones, and high-technology parks.
How easy is it to close a Turkish company?
Please click here for further details and services on closing a company.
What about banking facilities?
Turkey’s banking industry has recovered strongly from the currency collapse and recession in 2001. Today the banking sector is somewhat smaller but much more robust, and foreign investors can choose between long-established local banks or international institutions such as HSBC or Citibank.
For help with opening a bank account in Turkey, please get in touch and we will be happy to advise you.