Opening a company in Türkiye
Turkey offers a natural gateway to three of the world’s largest and most dynamic markets: Europe, Asia, and the Middle East. It’s no surprise that its economy is booming, growing at over 5% annually. Add to this a huge domestic market, an ambitious workforce, and low labor costs, and it’s easy to see why Turkey is emerging as a key hub for foreign investors seeking to establish new businesses.
Is Turkey a safe haven for foreign investment capital?
Now, yes. The Turkish economy suffered severe difficulties during the 1990s, but the economic environment was transformed in 2001 with the introduction of far-reaching economic reforms. Then, in 2003, the Foreign Direct Investment Law was passed. Since then, the number of foreign companies in Turkey has more than doubled. The future looks bright for foreign investors considering starting a business in Turkey.
Is it easy to start a business in Türkiye?
Few countries can do it faster. You can open a Turkish company in just one day, provided you have all the correct documentation. Our specialists are ready to guide you through the company formation process. All you have to do is contact us—and you can have your new Turkish company up and running in just a few hours.
What are the main forms of company incorporation in Türkiye?
The two most popular forms of Turkish companies 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), of which 25% must be paid up.
What other requirements are necessary for a limited liability company (LS)?
- A minimum of two shareholders
- Shareholders can be Turkish or foreign citizens
- No requirement for certified financial statements if the company has fewer than fifty members
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), of which 25% must be paid up.
What other requirements are necessary for a joint stock company (AS)?
- Minimum of five members (no nationality requirement)
- Board of Directors (minimum three members)
- All joint stock companies must have their own audit
What other types of companies exist in Türkiye?
The other main forms of company incorporation in Türkiye are:
- Limited Partnership (not all partners have limited liability)
- Collective Society (limited liability, open only to real persons)
Why invest in Türkiye?
Is it easy to hire staff in Türkiye?
Turkey is home to 73 million people, and a large portion of the workforce is semi-skilled. Unemployment is relatively high, around 10%. However, the country’s economic revival has created a professional, ambitious, and well-educated urban class, and this is the sector where foreign companies find staff. Our recruitment specialists are ready to answer your questions about staffing and labor laws.
What is the regulatory framework for those wishing to open a company in Türkiye?
Turkey has committed to a liberal economic environment, reflected in the introduction of the Foreign Direct Investment Law in 2003. The corporate tax rate is currently 20%, and investor protection complies with international standards. The 2003 law abolished many of the rules that had previously hindered foreign investment, such as the requirement for foreign companies to seek ministerial approval before incorporation.
Are there financial incentives available for those who want to start a business in Türkiye?
Turkey offers a wide range of financial incentives for foreign investors. Large investors are exempt from customs duties and/or VAT on materials and equipment, while there are strong additional incentives for companies investing in less developed provinces, free trade zones, and technology parks.
Open a bank account in Türkiye
What are the banking services like?
Turkey’s banking sector isn’t huge, but it’s much more robust than it used to be, and foreign investors can choose between historic local banks and international institutions like HSBC and Citibank. If you need help opening a bank account in Turkey, don’t hesitate to contact us and we’ll provide you with all the information you need.
How can I get more information about company formation in Türkiye?
Please contact us and we will be happy to answer your questions and explain how we can help you open a company in Turkey.