Turkey’s strategic location between Europe and Asia, combined with its dynamic economy and favorable investment climate, makes it an increasingly attractive destination for international businesses. With its skilled workforce, competitive costs, and growing market opportunities, establishing a business in Turkey presents significant advantages for entrepreneurs and corporations alike.
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Starting a business in a new country can seem daunting. However, Turkey, with its dynamic economy and strategic location, offers immense opportunities for foreign investors. Akkas & Associates Law Firm, a leading Istanbul-based law firm since 1992, is here to guide you through every step. We ensure a smooth and compliant establishment process.
Why Choose Turkey for Your 2025 Business Venture?
Turkey’s economy continues to grow, attracting global attention. Its young, skilled workforce, expanding domestic market, and status as a bridge between East and West make it an ideal investment destination. The Turkish government actively encourages foreign investment through various incentives and a streamlined regulatory environment.
Types of Business Entities in Turkey
Understanding the different legal structures is crucial for foreign investors. Each type has distinct implications for liability, taxation, and management.
Joint Stock Company (Anonim Şirket – A.Ş.)
This is a popular choice for larger enterprises. A Joint Stock Company has its capital divided into shares. The liability of shareholders is limited to their subscribed capital. This structure offers flexibility in capital raising and transfer of ownership. It is governed by a Board of Directors.
Limited Liability Company (Limited Şirket – Ltd. Şti.)
Suitable for small to medium-sized businesses, a Limited Liability Company requires at least one shareholder. Shareholder liability is limited to their capital contribution. This entity offers a simpler management structure compared to a Joint Stock Company. It is widely adopted by foreign investors due to its ease of establishment and operational flexibility.
Branch Office
Foreign companies can establish a branch office in Turkey. This is an extension of the parent company and does not have a separate legal personality. The parent company is fully liable for the branch’s debts and obligations. Branch offices are typically used for specific projects or operational activities.
Liaison Office
A liaison office is primarily for market research, promotion, and representation. It cannot engage in commercial activities. This option is ideal for companies exploring the Turkish market before committing to a full commercial presence. Permissions for liaison offices are typically granted for a limited period and can be extended.
Key Steps to Establishing Your Business
The process of company formation in Turkey involves several stages. Our firm ensures meticulous adherence to all legal requirements.
1. Determine Your Business Type and Name
First, decide on the most suitable legal entity for your business goals. Then, select a unique and appropriate company name. This name must be approved by the Turkish Trade Registry Office.
2. Draft the Articles of Association
The Articles of Association (Bylaws) are crucial. They define the company’s purpose, capital, management, and other essential details. This document must be prepared in Turkish and notarized. For expert assistance with drafting, consider our corporate law services.
3. Register with the Trade Registry Office
This is a mandatory step. Once the Articles of Association are approved, the company must be registered with the relevant Trade Registry Office. This involves submitting a range of documents, including the company’s notarized articles, founders’ declarations, and passport copies of shareholders and directors.
4. Obtain Tax Registration
After Trade Registry registration, your company needs a tax identification number (TIN). This is obtained from the local tax office. It is essential for all financial transactions and tax declarations.
5. Open a Bank Account
A corporate bank account in Turkey is necessary for all financial operations. You will need your company’s tax ID and other registration documents to open an account. Turkish banks offer a wide range of services suitable for businesses.
6. Register with the Social Security Institution (SGK)
If your company will employ staff, registration with the Social Security Institution is compulsory. This ensures compliance with social security obligations for your employees.
7. Obtain Necessary Licenses and Permits
Depending on your industry, additional licenses and permits may be required. These could range from environmental permits to specific operational licenses. Our team assists in identifying and securing all necessary approvals. For insights into specific industry regulations, you may find information from the Ministry of Trade helpful.
FAQs: Establishing a Business in Turkey
Q1: What is the minimum capital required to establish a Joint Stock Company in Turkey? A1: As of 2025, the minimum capital requirement for a Joint Stock Company (A.Ş.) is TRY 250,000. However, for publicly traded companies, this amount is significantly higher.
Q2: Can a foreign national be the sole shareholder of a Limited Liability Company in Turkey? A2: Yes, a foreign national can be the sole shareholder of a Limited Liability Company (Ltd. Şti.) in Turkey. There is no requirement for a Turkish national shareholder.
Q3: How long does it typically take to register a new company in Turkey? A3: The registration process for a new company in Turkey can typically be completed within 3 to 7 business days, provided all necessary documents are in order and no complications arise. This timeframe does not include obtaining specific permits or licenses that may be required for certain business activities.
Q4: Are there any restrictions on foreign ownership of businesses in Turkey? A4: Generally, there are no widespread restrictions on foreign ownership in Turkey. Foreign investors can own 100% of a Turkish company. However, certain sectors like media, aviation, and some strategic industries may have specific foreign ownership limitations or require special permits.
Q5: What are the main taxes a foreign-owned company will face in Turkey? A5: Foreign-owned companies in Turkey are subject to corporate income tax (currently 25% for most businesses), Value Added Tax (VAT), withholding taxes on certain payments, and stamp duty. There are also social security contributions for employees. Double taxation treaties exist with many countries to prevent investors from being taxed twice.
Reach Out to Akkas & Associates for Your Turkish Business Venture
Considering establishing a business in Turkey? Whether you’re planning to set up a Joint Stock Company, a Limited Liability Company, or need advice on corporate law, our experienced team at Akkas & Associates Law Firm is ready to assist. Contact us today for unparalleled legal guidance and support in navigating Turkey’s vibrant business landscape.
Reach us for Starting Your Business in Turkey
Establishing a successful business in Turkey requires careful planning, thorough understanding of local regulations, and expert legal guidance. With Turkey’s growing economy and strategic advantages, 2025 presents an excellent opportunity for business expansion into this dynamic market.
The complex legal framework surrounding business establishment, regulatory compliance, and ongoing operations demands professional expertise to ensure success. From initial company formation to long-term operational support, having experienced legal counsel is essential for navigating Turkey’s business landscape effectively.
Contact Akkas & Associates Law Firm today for comprehensive legal assistance in establishing your business in Turkey. Our experienced team of corporate lawyers has been providing exceptional legal services since 1992, helping international clients successfully establish and grow their businesses in Turkey. Let us guide you through every step of the establishment process and ensure your venture’s success in the Turkish market.
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