Turkey’s Business Setup: Key Steps with Commercial Law Attorney

Setting up a business in a foreign land can be daunting, especially when you’re unfamiliar with local laws and regulations. Turkey is a country full of promise for investors and entrepreneurs, with a robust economy and a welcoming business environment. This guide provides you with comprehensive information on company establishment in Turkey.

Who Are Viridis Legal Partners?

We are a law firm based in Istanbul, specializing in various areas of law, including commercial law and related areas. As Viridis Legal Partners, your corporate lawyers in Turkey, we offer personalized and effective solutions to your legal matters in Turkey.

An Introduction To Setting Up A Company In Turkey

Establishing a company in Turkey involves several legal procedures, including choosing the right business structure, registering your company with the relevant government authorities, and ensuring you have the right licenses and permits. The process might seem complicated, but with the right legal support, you can successfully establish a company in Turkey.

Understanding Turkey’s Legal Framework For Businesses

When planning to open a business in Turkey, understanding the local legal framework is crucial. This includes knowing the laws regulating businesses, commercial activities, and foreign investments. It’s also essential to understand the tax obligations and labour laws, especially if you plan to hire employees.

Choosing The Right Legal Structure For Your Business

One of the first steps to starting a business in Turkey is choosing the right legal structure.

In the Turkish Commercial Code, companies are divided into two main groups: capital companies and sole proprietorship companies. The most common types are Sole Proprietorship, Limited Liability Company (LLC), and Joint-Stock Company (JSC). The choice of the legal structure can significantly impact the company’s operation, management, and taxation, so it’s vital to make an informed decision.

Sole Proprietorship

A Sole Proprietorship is the simplest form of business structure. It’s suitable for individuals who wish to operate a small business. In a Sole Proprietorship, the business owner has unlimited liability, which means they are personally liable for the business’s debts.

Limited Liability Company (LLC)

An LLC is a popular choice among foreign investors. It requires a minimum capital of 10,000 Turkish Lira and can be established by a minimum of one and a maximum of fifty partners. The liability of the partners is limited to their contribution to the capital.

Joint-Stock Company (JSC)

A JSC is suitable for larger businesses with higher capital requirements. It requires a minimum capital of 50,000 Turkish Lira. The liability of shareholders is limited to their shares in the capital.

Branch & Representation Office of Foreign Companies

Foreign companies can also establish a branch or a representation office in Turkey. While a branch office can engage in commercial activities, a representation office cannot engage in commercial activities and can only conduct market research and promotional activities.

The Company’s Capital Funds

The required capital for setting up a company in Turkey depends on the chosen legal structure. For an LLC, a minimum capital of 10,000 Turkish Lira is required. On the other hand, a JSC requires a minimum capital of 50,000 Turkish Lira.

Required Documents For Registering A Company In Turkey

Documents required for company registration in Turkey include documents such as articles of association, capital payment certificates, and identity documents of shareholders and managers. All documents must be notarized and submitted to the Trade Registry Office.

The Procedures For Starting A Company In Turkey

1. Obtaining The Necessary Licenses and Permits

Before starting your business operations in Turkey, you must obtain the necessary licenses and permits from the relevant local authorities. The type of licenses and permits required depends on the nature of your business.

2. Opening a Bank Account

To register your company in Turkey, you need to open a bank account and deposit the required capital. You must provide a bank receipt proving the capital has been deposited when you apply for company registration.

3. Registering With Social Security and Tax Authorities

Once your company is registered, you must register with the Social Security Institution and the local tax office. You will receive a tax number that should be used in all tax-related transactions.

What Are the Labour Laws in Turkey?

If you plan to hire employees in Turkey, you must comply with the local labour laws. This includes minimum wage regulations, working hours, overtime pay, and social security contributions. It’s advisable to consult with a lawyer to ensure compliance with labour laws.

Shareholders In A Company In Turkey

Who are The Shareholders of a Company in Turkey?

Shareholders are the owners of a company. They can be individuals or legal entities, and they contribute to the company’s capital. Shareholders play a crucial role in making significant decisions about the company.

Viridis Legal Partners’ Company Establishment Services In Turkey

At Viridis Legal Partners, we guide you through every step of the company registration process in Turkey. From choosing the right legal structure to submitting the necessary documents and representing you before government authorities, we offer a comprehensive service to get your company up and running.

Conclusion: Establishing A Successful Company In Turkey

Setting up a company in Turkey involves several important steps, but with expert guidance and meticulous planning, you can establish a successful business in this vibrant and fast-growing market. Whether you’re planning to set up an LLC, a JSC, or a branch of a foreign company, Viridis Legal Partners is here to help you navigate the process smoothly and efficiently.

Articles on Law