company works and operations consultancy

There are many advantages to setting up companies for foreigners in Turkey since the state support to foreign investors has an incremental trend. Can foreigners create a company? What are the conditions to found a company in Turkey? What preparations do you need to handle?

Which direction is beneficial for you? Serka Law Firm will walk you through these answers.

Can Foreigners Establish a Company in Turkey?

The answer is a direct ‘Yes’. According to Foreign Direct Investment Law No.4875,  foreign investors may establish all types of companies regulated in the Turkish Commercial Code No.6102, same as Turkish investors. In order to increase foreign direct investments in Turkey, many legal obstacles and bureaucracy for foreign investors have been removed with the relevant law.

“Foreign investors shall be subject to equal treatment with domestic investors.” (Foreign Direct Investment Law No.4875, Article 3/2. )

Therefore, if you are intent on establishing a company in Turkey, it is guaranteed by law that you will have equal rights with Turkish investors. We are here to represent you with our expert lawyer team.

For more information about the Law No.4875, you can visit the following page : https://www.invest.gov.tr/en/library/publications/lists/investpublications/fdi-law-in-turkiye.pdf

Advantages of Establish a Company in Turkey

With the investment incentive policy aimed by Turkish government, establishing a company in Turkey has become more advantageous for foreign investors. At this point, there are more than one privilege granted to foreign investors. To give an example, foreign investors who meet necessary conditions can acquire Turkish citizenship by establishing a company within a short period of 3 months. In addition, foreign investors can freely transfer their commercial earnings abroad by taking advantage of low tax rates and bonus incentive applications.

For more information about acquiring Turkish citizenship by establishing a company, you can read this article : https://serkalaw.com/turkish-citizenship-by-establishing-a-company/

Do You Need A Lawyer To Set Up A Company?

The establishment process must be followed with the help of lawyers who are experts in foreigners’ law and experienced in company establishment processes. Legal problems experienced by companies mostly arise from mistakes which are made during the establishment process. Plus, administrative demands and legislation for the type of company involved are constantly changing. Therefore, even the smallest detail of this process should be given importance. Sometimes the process has an overwhelming effect on foreign investors. More than 10 years of experience with highly qualified staff including expert lawyers, Serka Law Firm will be appreciated to carry out all process quickly and effectively on your behalf.

How to Establish a Company in Turkey?

The types of companies that are regulated by the Turkish Commercial Code are considered as Joint Stock Company, Limited Liability Company, Collective Company, Commodity Company and Cooperative Company.  

Legal requirements for each type of company are different and each of them has its own advantages. First of all, it is necessary to determine which type of company would be most convenient to establish and to make the necessary planning about how this process will work. Before the official establishment procedures, preliminary preparations should be made regarding the establishment of company. The type of company should be determined, the the articles of association (main contract) should be prepared depending on what the commercial activity will be, and physical needs should be met.

Here is the establishment procedure as follows :

1- Duly preparation of the company’s articles of association (main contract) with an expert lawyer. It should be prepared in line with the current purpose considering possible future situations.

2- Sending official reports and contracts via MERSIS (Central Registry Number System): Through MERSIS system, the main contract is approved and a registration number is given to the company established by foreigners.

3- Notarization of Documents : Documents in foreign languages ​​should be translated into Turkish by authorized translators and certified by a notary. For foreign legal persons; it is required to provide an apostille annotated copy of the tax record in the country which it is located, 2 copies of the activity certificate with apostille from the ministry of commerce in the country in which it is located and an apostille annotated document allowing the establishment and representation of companies.

4- Obtaining a potential tax number in the name of the company from the tax office.

5- Competition Authority Contribution Share: 0.04% of increased capital must be deposited into the bank account of the Competition Authority by payment from the Trade Registry Office cash desk.

6- Documenting invested capital of the company’s bank account. The minimum required capital for each type of company is different. For example, the minimum required capital is 50.000-TL for  joint-stock companies and at least 25% of the capital must be paid before registration.

7- Preparation of the signature declarations : The signatures of the persons authorized to represent the company must be approved by the competent authority and their signature circulars must be prepared.

8- Application to the Trade Registry Office for registration procedures.

9- Approval of some legal books of the company by public notary

10- Registration of the Tax Office and Social Security Office

11- Registration of e-TUYS system : Some necessary informations must be filled in this electronic system.

For more information about setting up a company in Turkey, you can read the guide book which was published by Ministry of Trade :  https://ticaret.gov.tr/data/5d3e935313b87607d8feeffc/rehber_Eng.pdf

Which Type Of Company Is The Best ?

We advise establishing Limited Liability Company (LLC) in the beginning as it is simpler, easy to manage and has less bureaucracy. A limited company with a single shareholder can be established with a share capital of minimum 10.000 Turkish Liras. It is possible to pay all of the capital shares in cash within 24 months following the establishment of the company. The total number of shareholders cannot be above 50.  For joint stock companies (JSC), the minimum capital amount is 50.000 Turkish Liras. In LLC companies, there is no obligation to deposit or block money in the bank before registration. For JSC companies, at least %25 of the capital must be blocked. It is necessary to deposit this amount in the bank and submit the letter which is received from the bank to the The Registry of Commerce. In conclusion, the establishment procedure of LLC companies is easier.

How Long Does it Take to Establish a Company in Turkey?

It takes about 3 days to establish a company in Turkey after all the necessary documents are prepared.

Can a Foreigner Without a Work Permit Establish a Company?

The International Workforce Law No. 6735, which has entered into force in 2016, has set out new regulations regarding obtaining work permit for foreigners. According to the new law, the obligation of obtaining a work permit for the members of the board of directors of joint stock companies that do not reside in Turkey and for the foreign partners of other company types who are not managing partner has been abolished. However, work permit obligation continues for foreigners other than those listed.

Can a Foreigner Acquire Turkish Citizenship by Establishing a Company?

The answer is ‘Yes’. Foreign investors who invest by establishing a company will be able to become Turkish citizens through investment if they meet the necessary conditions.

For more information about acquiring Turkish citizenship by establishing a company, you can read this article : https://serkalaw.com/turkish-citizenship-by-establishing-a-company/

What should you question to find the ideal Lawyer?

Service Area:

Need help with any legal issues?