Documents required to setup your company in Turkey
It is not a secret that the growing competition around the globe is a major factor in determining the location of businesses and foreign investment.
In this respect, Turkey is very suitable to encourage the establishment of businesses and investments, as well as taking care of the globalization process and legal strategies in the establishment of businesses in Turkey.
Being able have accurate information about the company registration process & the essential documents required to setup a company in turkey is a must for investors of all kinds.
In this article, we will provide you with in-depth input about the documents required to setup a company in Turkey.
Why should you build your firm in Turkey?
Turkey is a nation that is situated in the middle of Europe between Europe & Asia. It is therefore easy to travel to because of its position. It is also advantageous from the investor’s perspective.
Although Turkey isn’t a member of the European Union, still it can enjoy different types of tariff exemptions in that from the European Union. At present, Turkey has a customs agreement with the EU that reduces the number of tariffs and customs on products and goods.
Here are a few major reasons why one should register its company in turkey.
Turkey is considered to be an economy in rapid development which is open to innovations from all over the globe. Turkey is ranked in the top 30 for the protection of investment from entrepreneurs.
According to data, Turkey is considered as the best 60 locations around the globe to conduct business. The gross domestic product in Turkey has reached USD 649 billion, and it is growing steadily.
- Turkish Free Trade Zone
Investors who are looking to the registration of a company in Turkey can incorporate a business within Turkey’s Turkish free-trade zone. There are many advantages to incorporating a business in the free zone.
The government will offer various types of tax benefits and incentives for companies that have been that is incorporated into the free trade zone. In addition, the investor can bring the money back to the country of origin from within the Turkish Free Trade Zone.
- Customs Union
Although Turkey isn’t a full member of the European Union, however, it is portion of the Customs Union that is part of the EU. This is why through this union there are many exceptions for tariffs and trade about Turkish goods.
- Foreign Direct Investment
Within Western Asia, Turkey receives the most foreign investment from nations like the UK and India, the USA as well as India. This indicates that Turkey’s government Turkey has loosened the rules in various sectors of foreign investment in Turkey.
- The Ease to do Business
It’s easy to incorporate a business within Turkey. A company located in Turkey can be formed with one shareholder and a director. The least amount of money needed for the building of a firm within Turkey can be EUR 3300.
Investors do not have to reside in Turkey to form a company. These reasons make it simple to do operations in Turkey.
Turkey is listed as one of the top 60 places around the globe to conduct business. According to the Transparency Index, Turkey is placed in the top 70 spots for having less corruption.
Thus, there is no involvement by the government in the procedure of the registration of companies in Turkey.
Documents required to setup a company in turkey
For registering a company in Turkey it is necessary to give the auditor the following documents required to setup a company in turkey so that your business can be recognized in Turkey after a period of, 10 days.
Down below we have got a complete list of the documents required to setup a company in turkey, let’s see what are they.
- Original passports of all partners (credible for longer than 6 months)
- Two photos (color – light background)
- There are a variety of names for companies to choose from
- The scope of the business
- The proportion of every member’s stakes in the business
- The appointment of the CEO for the business (one or more partners)
- Locating where to locate the office in Turkey
- Power of attorney for the member who is elected to enroll the business
- The minimum capital required is 10,000 Turkish lira, of which one-quarter of which (2,500 Lira) is blocked on the company’s account for a few days.
Basic steps to register the company in Turkey
The following procedure is mandatory to register a company in Turkey:
- Register using MERSIS
In the initial step, to register a company, the applicant must create an account at MERSIS. The applicants are all allowed to make use of the system online. For foreign applicants, the first tax number will be required to register with MERSIS.
- Online System
The online system that is associated with MERSIS is tied to contracts that could be created by entering certain details related to the software. The Tax ID of the company will be created using the system mentioned above.
The authorized representatives will need the signing contracts. Certain companies will need to fulfil requirements set by they are regulated by the Trade Registry Directorate.
If the approval procedure will be directed at the Notary. As these regulations require to be obtained by the notary’s office. After the Notary is satisfied with the process and the signatures are checked. Then, the declarations should be made by the people.
- Capital Depositing Capital
0.04% of the authorized capital of the company has to be transferred to the company’s bank account. The account belongs to the ‘share competition authority.
This amount could be paid through the relevant trade registry together with other transactions. If joint stock corporations are involved 25% of this money in cash needs to be transferred to your bank account. This is to promote the registration process for the firm.
- Trade Registry Application
In the following step, the candidates needs to apply to an organization called the Trade Registry. This application should be submitted to the Directorate of the trade registry. Once the application is reviewed the trade registry will provide confirmation.
Benefits of registering a Company in Turkey
- It is not essential to possess a Turkish member and you can be the sole owner of your business.
- Turkey can connect to international markets.
- Iran along with Turkey have very positive trading relations.
- The price of registration and support for a firm in Turkey is significantly less than in other nations.
- The expense of staying in Turkey is less than in other EU countries.
- Tax rates in Turkey are based on the number of your earnings.
- The process of enrolling on a business in Turkey is very short.
Be aware that if you employ an employee who is a citizen of Turkey and have him insured on the first day along with smaller bonuses, the process for getting a Turkish work permit is simpler.
Book free end-to-end experts consultation with Odint finance and legal experts
Foreign investment is growing in Turkey, as well as the authorities have also liberalized the rules governing foreign investment. In terms of economics, Turkey is considered one of the quickest evolving economies in the world.
If you are planning to set up a firm in Turkey, you must seek the assistance of Odint Consultancy in setting up your dream firm in turkey.
The minimum amount of capital required for the registration of a business for registration in Turkey is as follows:
- The Joint Stock Company in Turkey is the coequal of 50,000 Turkish Liras (TL).
- The money of Non-Public Joint Stock Companies is 100,000 TL.
- The least amount of money required for a limited company or the Limited Liability Company is 10,000 TL.
The least number of directors in the Turkish Firm will be one.
A resident director isn’t lawfully needed in Turkey.
Yes, the money can be repaid to the country where you belong to. The Turkish government has loosened the process.
Yes, Foreign involvement is permitted in Turkey. The Turkish government has liberalized schemes for foreign investment in Turkey.
Azhar Ansari is a company formation specialist with 8+ years of expertise in international business. Financial planning, risk management, and other related areas.