For aspiring entrepreneurs seeking to unlock the vast opportunities of the Turkish market, understanding the nuances of “how to open a business in Turkey” is crucial. By selecting the ideal company type, whether it’s a limited liability company (LLC) for flexibility or a joint stock company (JSC) for expansion, you can establish a strong foundation for success.
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The streamlined procedures, from reserving a unique company name to obtaining essential permits and licenses, ensure a hassle-free setup process. Moreover, by partnering with Legalixa Law Firm’s experienced lawyers, you can navigate the legal complexities with ease.
How to Open a Business in Turkey Fast?
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Steps to Open a Business in Turkey
Start your success story in Turkey today and watch your business flourish in this dynamic and vibrant economy. Legalixa Law Firm guides on how to open a company in Turkey, covering various company types, procedures, and essential requirements.
Understanding Company Types in Turkey:
Before diving into the company registration process, it is crucial to select the appropriate company type that best suits your business needs. In Turkey, several types of companies are available, each with distinct characteristics:
Limited Liability Company (LLC): This is the most common form of company in Turkey, offering limited liability protection to its shareholders. It requires a minimum share capital, and the liability of each shareholder is limited to their capital contribution.
Joint Stock Company (JSC): A JSC is suitable for larger businesses seeking to raise capital through the stock market. It requires a higher minimum share capital compared to an LLC and is governed by more stringent regulations.
Branch Office: If you already have an existing foreign company and wish to establish a presence in Turkey, a branch office can be a suitable option. However, keep in mind that it does not constitute a separate legal entity from its parent company.
Liaison Office: A liaison office is established for non-commercial activities, such as market research, promotion, and communication. It is prohibited from conducting commercial activities.
Free Zone Company: A Turkish Free Trade Zone is a specially designed production site that aims at increasing export-oriented investment and production in Turkey, accelerating the entry of foreign capital and technology into Turkey. There are 19 Free Trade Zones in Turkey and their annual trade volume increasing rapidly.
Business Registration Procedures:
Once you have decided on the company type, the registration process involves several steps:
Choose a Company Name: Select a unique and suitable name for your company that adheres to Turkish naming regulations.
Obtain Tax Identification Number (TIN): Before proceeding with the registration, all shareholders and directors must obtain a TIN from the local tax office.
Prepare Required Documents: Gather the necessary documents, which may include passport copies, address proof, articles of association, and a notarized signature circular.
Apply for Company Registration: Submit the required documents to the Trade Registry Office in the province where the company will be based.
Obtain Work Permits: Non-Turkish employees need to obtain work permits to work in Turkey.
Essential Requirements to Open a Business in Turkey
To successfully open a business in Turkey, you must meet certain requirements:
Minimum Share Capital: The amount of minimum share capital required varies depending on the company type. For example, an LLC typically requires a minimum share capital of TRY 10,000.
Shareholders and Directors: An LLC must have at least one shareholder and one director, while a JSC requires a minimum of five shareholders.
Legal Representative: If the shareholders are non-residents of Turkey, the company must appoint a legal representative who is a Turkish resident.
Physical Address: The company must have a physical address in Turkey where official documents can be served.
Summary of Opening a Business in Turkey
Starting a business in Turkey offers great potential for growth and expansion, but the process requires careful consideration of company types, procedures, and legal requirements.
By selecting the appropriate company structure, following the necessary procedures, and adhering to the legal prerequisites, aspiring entrepreneurs can set the foundation for a successful business venture in Turkey.
Engaging professional legal assistance can also simplify the process and ensure compliance with Turkish laws and regulations, further contributing to the business’s long-term success.
Contact us to Open a Business in Turkey
Legalixa Law Firm is a solution-oriented law firm that empowers clients to meet the diverse and changing demands of today’s global market. Since 1992, our lawyers have been helping clients with complex legal challenges and maximizing opportunities for success.
Our law firm is now one of the leading company formation law firms in Istanbul, Turkey. You may reach us to Open a Business in Turkey through our Contact page.