- Minimum capital requirement: 50.000,00 TL (approx. 17.000 USD or 15.500 EUR)
- Management: A Joint Stock Company is managed by one or more
- Share Transfer: Share transfers are not subject to any registration procedures.
- Liability: A joint stock company is solely responsible for its debts as an amount of its assets and shareholders are solely responsible to the company and their responsibility is limited to their subscribed shares. (i) “For further information with regard to the liabilities of board of directors or managers, please contact us.”
- Minimum capital requirement: 10.000,00 TL (approx. 3.400 USD or 3.100 EUR)
- Management: A Limited Liability Company is managed by one or more managers. If more than one manager is appointed, at least one of the managers should be a shareholder.
- Share Transfer: Share transfers must be registered with the Turkish Trade Registry.
- Liability: Shareholders can be held liable to the company, to other shareholders and creditors for breaching their liabilities regulated by law and articles of association wrongfully arisen from the law and contract.
- Minimum Capital Requirement: There is no specific capital requirement.
- Management: The branch is managed by the branch representative to be appointed by the parent company. The branch representative represents the branch based on a power of attorney to be issued by the parent company. At least one of the representatives of the branch shall hold Turkish residency permit.
- Share Transfer: N/A
- Liability: Since branch offices are not separate legal entities distinct from their parent company under Turkish law, the parent company directly assumes rights and debts/profits and losses arising from the transactions of the branch.
Foreign Companies can open a liaison office in Turkey.
- To open a liaison office, permission of the Ministry of Economy of Turkish Republic must be obtained. Permits are granted for maximum 3 years upon the first application.
- Liaison offices are not authorized to be engaged with commercial activities, execute contracts and have an income.
- Employee salaries have exemption of Turkish income tax as long as the salary payments are foreign sourced.
- Incorporation process will start with the obtaining tax ID numbers. The potential tax ID numbers must be obtained for all the foreign managers/directors and for both real person and legal entity shareholders.
- In order for your Company to be duly incorporated, required documents must be submitted to the Turkish Trade Registry for registration. *
- After obtaining the registry certificate, we will complete tax registration of the NewCo.*
(i) “For further information, please contact us.”
To set up a Turkish company, registration with Trade Registry Office is required. The main document of a Turkish Company is its “Articles of Association” which includes the rules about how the Company works and it is also required for the registration with the Trade Registry Office.
What we need to know to prepare the Articles of Association of your Company is;
- A company name
- An address
- At least one shareholder
- At least one director/ manager
- Details on the share capital to be subscribed
Following the registration with Trade Registry Office, you will receive “Registry Certificate”. This official document confirms that your Company is duly incorporated and existed under Turkish Laws.
- The factories operating in Free Trade Zones are exempt from VAT and Customs Tax for the machines and equipment they purchased from abroad for their investment.
- The products manufactured in or brought to the Free Trade Zones can be sold in domestic market.
- Exemption From Income Tax
The wages of the employees employed by manufacturer companies that annually export at least 85% of their products are exempted from Income Tax.
- 100% Corporate Income Tax Exemption
The income of the manufacturer companies which is generated from the sale of goods that are manufactured in Free Trade Zones is exempted from Corporate Income Tax.
- Value Added Tax (VAT) Exemption
Since the sales from Turkey to the Free Trade Zones are considered as export, the goods and services are exempt from Value Added Tax under VAT Code without any time limitation.
- Stamp Tax Exemption
The documents and transactions made with regard to the operations carried out in the Free Trade Zones are exempt from stamp tax which is levied as a percentage of the value of the document.
- Free Capital and Profit Transfer
The capital, income and profit can be transferred to Turkey or any other country within the foreign exchange legislations without being subjected to any tax.
- Customs Tax Exemption
Private Consumption Tax exemption for goods coming from abroad, Customs Tax Exemption for goods coming from countries other than EU.
- The RUSF Exemption
Resource Utilization Support Fund applied on the imports with the acceptance credit.
Registered trade names of Turkish legal entities are protected as equally as Industrial Property rights under the Turkish Copyright Law. Therefore, availability check of your desired company name is important.
Choosing The Proper Company Name
- Trade name of a Turkish Company must indicate the business activity to be carried out by the Company.
- Foreign words are permitted.
- Turkish words “Türk”, “Türkiye”, “Cumhuriyet” and “Millî” are only permitted if permission from the Council of Minister obtained.
Fill in our Company Name Availability Check List and we inform you whether your desired company name is available for use.
100% domestic legal entities, 100 % foreign legal entities or joint venture companies can operate in Free Trade Zones by obtaining a special license.
Following companies that are subject to special legislation must be incorporated as Joint Stock Company and approval of Ministry of Customs and Trade is required for their incorporation.
- Insurance Companies,
- Factoring Companies,
- Holding Companies,
- Companies operating as foreign currency exchange offices,
- Companies operating in Public Warehousing,
- Securities, Real Estate, Venture Capital Investment Companies,
- Intermediary Institutions,
- Financial Leasing, Factoring, Consumer Financing,
- Companies that are founders and operators of free zones