Company registration in Türkiye is a complex process, and it can be difficult to navigate if you have limited knowledge of Turkish law. However, understanding the legal requirements and completing the right paperwork can make all the difference between success and failure as an ex-pat entrepreneur. In this article, we’ll discuss what documents you need to register your company in Türkiye as a foreigner and how much it costs to set up your business here.
Business registration in Türkiye as a non-resident
As a non-resident, you can register a business in Türkiye as long as you have an address and representative in Türkiye. In Türkiye, business formation procedures can be completed in one hour if all necessary paperwork is submitted to the relevant trade registry offices. Also, the establishment of a company is duty-free. The Central Registry System (MERSS) is used to complete establishment procedures electronically.
Foreigners establishing a company in Türkiye typically require 2-7 days, depending on criteria such as the type of company, the preparation of the articles of association, the status of notary and registration procedures, and the process of obtaining authorization from the ministry, if necessary.
What kind of company can you register?
According to the Turkish Commercial Code, there are five different types of companies in Türkiye. These are Joint Stock Companies, Limited Companies, Collective Companies, Limited Partnerships, and Cooperatives. Learn More about the types of companies here.
You can register a limited partnership under an ordinary limited partnership or a limited partnership divided into shares.
The process for each type of company is slightly different however, so be sure to review all the information on our website before deciding how you want to proceed.
If you have any additional questions about the registration process or need help with your application, feel free to check out this document – Establishing a company in Türkiye!
How much does it cost to register your business as a foreigner?
The legal fees for establishing a company in Türkiye are between 1500 and 2000 USD. Excluding service fee.
Foreign real and legal entities can form a company in Türkiye under the same rules as domestic investors.
Steps for establishment.
The documents required for your company’s registration are completely dependent on the type of company and the company’s legal status. However, the steps for establishing your company in Türkiye are the same regardless of if you are a foreigner or a citizen. They include:
- Preparation of the company contract and approval of the signatures of the founders
- Preparation of signature declarations of company officials
- Payment of Competition Authority Share and Cash Capital
- Application to the Trade Registry Directorate for registration
Registering for tax
To register a company in Türkiye, a foreigner-only needs to submit his personal information to the interactive tax office and acquire a foreign tax number in a matter of minutes. Foreign real persons are asked to write their residence address through the interactive tax office. MERSIS has established the criterion for residence to be a work permit or a residence permit for the person while the company is in the establishment phase. See Company Establishment Procedure for Foreigners for more.
As of November 2022, foreigners setting up companies in Türkiye are subject to corporate income tax, which is charged at a rate of 22%. This is due in monthly instalments and paid by the company owner. The amount of tax that you have to pay depends on how much profit your company makes, so it’s best to keep track of expenses and revenue so that you can give an accurate estimate when registering for taxes.
Registering your company in Türkiye may seem overwhelming, but the process can be relatively straightforward if you have the right documentation and the right help.
- You will need to register your company’s name with the Trade Registry Office.
- You will also need to register the address of your office (or home) with the Trade Registry Office.
- To do this, you must obtain a TUR-VAP (Tax ID number). This requires an application and payment at an authorized bank or post office, as well as the submission of documents proving that you have authorization from local authorities to conduct business in Türkiye.
Conclusion
We hope that this article has been helpful in guiding you through the registration process and helping you understand what is required to start a business in Türkiye. The country’s economy is growing, and there are many opportunities for foreigners who want to do business there. Whether you are looking to open a retail store or import goods into the country, we wish you the best of luck with your endeavour!
