INTRODUCTION TO REGISTERING A COMPANY IN TURKEY
Company formation in Turkey is known and broadly recognised as a major commercial hub, located at the crossroads between Europe and Asia, it offer a welcoming environment for all foreign investors. Registering a company in Turkey can benefit investors to investment environment, eliminating red tape in setting up business and low cost and minimal procedures.
Turkey has a dynamic economy that attract foreign investors as it has a promising economic growth among the OECD members.Turkey encourages foreign direct investment, also good infrastructure and competitive skilled workforce.With it’s more stable government, favorable tax regimes and continuing negotiation terms for entry into EU can benefits foreign investors with incentives and tax benefits to those who open companies in certain free zones.Currently the corporate tax rate in Turkey is 22%.
What are the main forms of business entity in Turkey?
Foreigner investors can incorporate either a Limited Liability(LS) company or a Joint Stock (AS) company;
- Limited Liability company (LS)
- Joint stock company (AS)
What are the requirements for a Limited Liability (LS) company?
- Minimum one shareholder
- Shareholders may be Turkish or foreign nationals
- Minimum share capital to establish a Limited Liability (LS) company is 10000 TL. 1/4 of the minimum share capital should be paid before registration.
What are the requirements for a Joint Stock (AS) company?
- Minimum of one shareholders (no nationality requirement)
- Board of Directors
- Minimum share capital to establish a Joint Stock (AS) company is 50000 TL, 1/4 of the minimum share capital should be paid before registration.
What other types of company are there in Turkey?
The other main forms of business entity are:
- Commandite company (not all shareholders have limited liability)
- Collective company (limited liability, only open to real persons)
- Cooperative company (the oldest type)
Turkey has committed itself to a liberal business environment, reflected in the introduction of the Foreign Direct Investment Law in 2003. Corporation tax is now 20% and investor protection conforms with international standards. The 2003 law scrapped many of the regulations that had impeded foreign investment in the past, such as the requirement that foreign companies seek ministerial approval before formation.
Any natural or legal foreign person may incorporate a company in Turkey without a need of having any Turkish (local) shareholder or director with the introduction of the Turkish Commercial Code Nr.6102 in 2011.
How can I get more information about opening a Turkish company?
Please contact us and Euro Company Formations will be delighted to discuss matters in greater detail, and to register a company in Turkey in the quickest possible timeframe.Contact US