Establishing a Business in Turkey for Foreigners

Establishing a Business in Turkey for Foreigners
01 June 2024

Establishing a Business in Turkey for Foreigners: A Comprehensive Guide

1. Legal Framework for Foreign Investors in Turkey Foreigners who wish to establish a business in Turkey are subject to the Direct Foreign Investments Law No. 4875. Thanks to economic policies supporting foreign investments, foreign nationals can establish companies and open workplaces under the same conditions as Turkish investors. The steps and requirements to be considered in this process are detailed below.

2. Determining the Type of Company and the Establishment Process Foreign investors must first decide which type of company they want to establish in Turkey. The company types in Turkey are divided into sole proprietorships and capital companies. Foreign investors usually prefer to establish a Limited Liability Company or a Joint Stock Company, and the establishment processes for these two types are similar, involving the following steps:

3. Stages of the Company Establishment Process

3.1. Determining the Field of Activity Foreign investors must decide in which field they will operate in Turkey. There are no restrictions for foreign investors who wish to engage in commercial activities. However, some specialized business areas may require equivalency.

3.2. Determining the Partnership Structure It should be determined whether the company to be established will have partners. Foreign investors can choose Turkish or foreign partners. Regardless of the partnership structure, foreign and Turkish investors have equal rights. Some foreign investors may prefer a Turkish partner to facilitate their operations in Turkey.

3.3. Obtaining the Activity Code (NACE) The fields in which the company will operate are determined, and accordingly, a NACE code is obtained. The NACE code is a 6-digit code showing the company's field of activity and is required during the application process.

3.4. Determining the Company Name The company name to be established should be determined. Legally, each company must have a unique name. You can check whether the chosen name has been previously used on the Turkish Union of Chambers and Commodity Exchanges’ website.

3.5. Determining the Company Capital The minimum capital amount for limited liability companies is X TL, and for joint stock companies, it is X TL. These capital amounts are determined during the application and reported to the relevant authorities.

3.6. Determining the Company Duration The company can be established for an indefinite period or a specific duration. This period is determined during the company’s establishment.

3.7. Selecting an Authorized Manager An authorized manager is chosen for the company. If an external person is to be authorized, a consent letter is arranged.

4. Preparation of the Articles of Association and the Application Process Based on the above information, the “Articles of Association” is prepared. After the preparation, the application process continues online via the Central Registry System (MERSİS) affiliated with the Ministry of Trade of the Republic of Turkey. During all these processes, notarized copies of the partners' passports are required.

5. Obtaining a Tax Number and MERSİS Registration Before entering MERSİS, company partners should register their passports at the tax office registry service and obtain a "Potential Tax Number". Once they enter MERSİS, they can proceed with the tax number. The required information is filled in sequence on the MERSİS screen:

  • Selection of company type
  • Company name and address
  • Passport number
  • Purpose and subject
  • NACE Code according to all activity areas if the company has multiple activities
  • Capital shares
  • Information of the person authorized to represent the company
  • Accounting period
  • Distribution of profits After verifying the accuracy of the information, the application is confirmed, and an appointment is made with the chamber of commerce using the approval code.

6. Establishing a Sole Proprietorship for Foreigners in Turkey Foreigners must have a work permit to establish a sole proprietorship in Turkey. Foreigners residing in Turkey for five years can apply to the Ministry of Labor and Social Security for a work permit.

7. Consultancy Services and JİT DANIŞMANLIK Foreign investors can authorize a consultant for the company establishment process in Turkey. Thus, the procedures are completed more quickly and easily. JİT DANIŞMANLIK securely and swiftly handles all legal procedures on your behalf during the company establishment process.

8. Reliable Solutions with JİT DANIŞMANLIK In addition to its work in the education sector, JİT DANIŞMANLIK also provides consultancy services to investors coming to Turkey from abroad according to their needs. Our goal is to support foreign investors at every step, from company establishment to production and service licensing according to different sectors in our country. As a reliable solution partner of foreign companies in Turkey, the value we produce provides multifaceted benefits to the institutions we consult.

9. Taking the Right Initial Steps As JİT DANIŞMANLIK, we determine the roadmap for foreign investors and take action to make the most efficient steps. Our specialized team stands by the investor at every stage, considering sectoral dynamics. When you move forward with JİT DANIŞMANLIK, all legal requirements are addressed in detail, paving the way for the company to operate successfully in the Turkish market. The JİT DANIŞMANLIK team handles and resolves regulatory details on your behalf. The right strategy is the key to success.

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