How to establish a company in Turkey?

Fener Hukuk
Jan 7
3 min read

Starting a business in Turkey can be a promising venture for both domestic and international entrepreneurs. Turkey's strategic location, growing economy, and favorable investment environment make it an attractive destination for business establishments. Below, we outline the key steps and legal considerations to help you navigate the process of establishing a company in Turkey.

1. Choose the Type of Company

In Turkey, you can establish different types of companies, each suited to specific business needs. The most common company types are:

Limited Liability Company (LLC) (Turkish: Limited Şirket)
Joint-Stock Company (JSC) (Turkish: Anonim Şirket)
Branch Office
Liaison Office

The LLC is the most popular choice for small to medium-sized enterprises due to its simpler structure and lower capital requirements.

2. Prepare the Articles of Association

The Articles of Association (AoA) is a foundational document that outlines the company's purpose, activities, and operational rules. It must comply with the Turkish Commercial Code. The AoA needs to be prepared in Turkish and signed by all shareholders.

3. Register with the Trade Registry Office

Company registration is conducted at the local Trade Registry Office where the company will operate. The required steps include:

Submitting the Articles of Association.
Paying the registration fees.
Obtaining a tax identification number.

4. Open a Bank Account

To proceed with incorporation, you must open a corporate bank account in Turkey. For an LLC, a minimum of 25% of the share capital must be deposited into the account before registration.

5. Obtain Tax and Social Security Numbers

Once the company is registered, you must apply for a tax number with the local Tax Office. Additionally, you will need to register with the Social Security Institution to fulfill employee insurance obligations.

6. Notify Relevant Authorities

After registration, notify:

The Tax Office regarding the commencement of business activities.
The Social Security Institution for employee registrations.
Municipal authorities if required for specific business licenses.

7. Consider Additional Licenses and Permits

Depending on your business sector, you may need additional permits or licenses, such as for food services, construction, or import/export activities. Always consult legal professionals to determine specific requirements.

8. Ensure Compliance with Local Laws

Compliance with Turkish labor laws, tax regulations, and commercial codes is critical. Regular accounting and auditing services may also be required, depending on the size and type of your company.

5 REASONS TO ESLABLISH A COMPANY IN TURKEY

1. Strategic Location

Turkey serves as a bridge between Europe, Asia, and the Middle East, making it a strategic hub for trade and investment. Its geographic location allows businesses to access markets across three continents, providing unique opportunities for export, logistics, and global partnerships.

2. Growing Economy

Turkey is one of the world's largest emerging markets with a dynamic and diverse economy. Its steady GDP growth and large domestic market offer a favorable environment for businesses looking to expand or establish a foothold in a competitive landscape.

3. Skilled and Affordable Workforce

Turkey boasts a young, educated, and highly skilled workforce. The cost of labor in Turkey is relatively lower compared to European countries, making it an attractive destination for companies seeking to reduce operational costs while maintaining quality.

4. Incentive Programs for Investors

The Turkish government offers a wide range of incentives to encourage both local and foreign investments. These include tax exemptions, reduced customs duties, and support for specific industries such as technology, manufacturing, and renewable energy.

5. Membership in Free Trade Agreements

Turkey has a Customs Union with the European Union and numerous free trade agreements with other countries. This allows businesses operating in Turkey to benefit from reduced trade barriers and competitive access to key international markets.

WHY WORK WITH A LEGAL PROFESSIONAL?

The company establishment process in Turkey involves numerous legal and procedural requirements. To ensure a smooth and efficient setup, we recommend working with experienced legal advisors who can guide you through the documentation, registration, and compliance stages.