Workplace Establishment Consultancy

According to the Turkish Commercial Code, any company establishment is free in Turkey. Foreign nationals can also engage in commercial activities by establishing a Limited or Joint Stock company in Turkey. You can also engage in commercial activity with a personal liability. They can transfer their earnings abroad, provided that their taxes have been paid.

We offer real estate consultancy services to our foreign clients for both investment and residence purposes. From the bargaining stage to the delivery of the title deed to the investor, we carry out all transactions with our expert consultants.

Advantages of Establishing a Company in Turkey

If foreigners want to establish a company, open a branch, invest, increase capital or transfer shares in Turkey, the pre-permissions required to be obtained from the Prime Ministry and the obligations such as bringing a foreign capital of at least 50,000 USD per foreign partner to Turkey have been abolished.

With the new regulation, it has been paved the way for foreigners to establish not only joint stock and limited companies, but also all types of companies without legal personality (such as ordinary companies). The conditions sought in the old law, such as being beneficial to the economic development of the country, working in a field of activity open to Turkish private enterprises, and not having a majority share in activities that would constitute a monopoly, have now been abolished.

Foreign investors will be able to freely transfer abroad the profits, dividends, sales, liquidation and compensation costs arising from their activities in Turkey, the amounts to be paid in return for license, management and similar agreements, and foreign loan principal and interest payments.

Foreign Direct Investments are Supported

Foreign direct investment is the investments made by the foreign investor for production by establishing a company or a branch in Turkey or as a partner in an existing company. Indirect investments made by purchasing stocks or bonds, such as portfolio investments, are not considered within this scope. In that case, foreigners who want to make long-term and permanent investments in Turkey and take the risks of business and exchange rates in Turkey will be able to benefit equally from the opportunities provided to domestic investors.

In Turkey, corporate types such as joint stock and limited liability companies can be established, as well as non-corporate private companies such as ordinary companies. Although sole proprietorships are advantageous due to their ease of establishment, lack of capital investment debt and low accounting costs, limited liability and joint stock companies are preferred most in practice.

In the establishment, first of all, the title of the company, its headquarters, who will be the manager/representative, capital and shares should be determined. Then, the notarized company documents (such as the articles of association) must be recorded in the central registry system and an application must be made to the trade registry directorate for the necessary documents.

A New Future

Business life in Turkey was further modified with the introduction of the new Turkish Commercial Code No. 6102 on 1 July 2012, which abolished and replaced the 55-year-old Turkish Commercial Code. [2] In line with European Union harmonization efforts, the new trade law has created a better structured and less complex business life.

Moreover, the law reflected basic EU principles such as free movement of capital. Among all, one of the main developments achieved by the enactment of the new law is the correction of the shareholding structure of companies. Accordingly, the new law allows the establishment of single shareholder joint stock companies or limited liability companies.

Moreover, foreign individuals can set up a joint stock company or a limited liability company. In joint stock companies, the board of directors can be formed by only one person and the board can also meet in an electronic environment. In addition, legal entities can be appointed as board members. Thus, foreign individuals or legal entities may establish a joint stock company and the board members may be foreign persons.

For documents issued outside of Turkey, the apostille annotation must be obtained and approved by the consulate or notary public. For company partners who are not Turkish citizens, a potential tax number should be obtained from the relevant tax office. Apart from these, ¼ of the main capital of the company and the share of the competition institution must be deposited in the bank.

The company will gain legal personality as of its registration by the trade registry directorate. Subsequently, transactions such as issuing a circular of signature for the manager or representative, book approvals, and obtaining a tax plate will be possible. Afterwards, it may be necessary to obtain a work permit for foreign partners.