Turkey attracts businessmen with a stable economy. This country has some of the best conditions for starting your own business and many advantages. Learn more about the types of companies in Turkey, requirements and taxes

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Foreigners have the right to open and manage companies in Turkey on the same level as citizens. In order to become the manager of his own business in Turkey, a future businessman needs to issue a work visa here.

What are the advantages of opening a business in Turkey and how to start your own business?

Read more about healthcare in Turkey for expats and foreigners, as well as health insurance and medical tourism here.

Read more about obtaining Turkish citizenship through investment here.

Advantages of starting a business in Turkey

Turkey is a country with a stable economy that is developing rapidly, especially in recent years. Only in 2021, the country's economy grew by a record 10%.

The Turkish government promotes the growth of exports of Turkish goods. The country exports most of its products to Germany, Great Britain, the USA and Italy.

The top five industries include the automotive industry, metallurgy, light industry, agricultural products, and textiles.

It is also worth adding to the main advantages of doing business in the country:

- The exchange rate of the Turkish lira is favorable for exports. In 2021, the exchange rate of the lira against the dollar decreased by 2.5 times and continues to fall. As a result, the cost of Turkish raw materials, goods and labor is reduced.

- Availability of qualified workforce. The unemployment rate in Turkey is relatively low - 10%.

- Duty-free zone with the European Union. Thanks to the free trade agreement signed between Turkey and the EU, goods from Turkey can be imported duty-free to European countries.

- Free economic zones. In Turkey, there are 18 free economic zones with a special tax and customs regime, which allow to support the export of goods from the country.

Read more about obtaining Turkish citizenship through investment here.

Types of companies in Turkey

Foreigners have the right to open any type of company in Turkey. However, 95% of the country's firms are registered as Limited Liability Company (LLC) and Joint Stock Company (JSC). By far the most popular type is LLC. Also, the investor can open a branch or representative office of his own business. However, a branch can conduct commercial activities, and a representative office does not have such a right, it only concludes and monitors contracts and receives financing from abroad.

Requirements for LLCs and JSCs in Turkey

A limited liability company in Turkey can have either one or several founders (but not more than 50). The minimum authorized capital is 10,000 TL (about $530).

To head a company, a foreigner must obtain a work visa. It will be opened if the authorized capital of the company will be 100,000 TL (about $5,300) and the company will employ at least 5 Turkish citizens.

A businessman will be able to obtain citizenship of the country if the authorized capital of the company is $500,000 and the company has at least 50 jobs.

It is also possible to hire a Turkish citizen as a manager and not manage the business personally.

The minimum authorized capital of the Joint Stock Company is 50,000 TL (about $2,660). The company can be public or non-public. The company's shares are listed on the stock exchange. JSC can be managed by either one director or a board of directors.

Are you planning to open a business in Turkey? Order legal advice from a local team of experienced lawyers and lawyers. With experienced specialists, starting your own business in Turkey will be really easy.

What services does the legal team provide?

An experienced team of lawyers and lawyers with more than 10 years of experience provides consultations in various areas:

- business registration, choice of organizational form and taxation system;

- representation of the interests of a legal entity;

- analysis and verification of contracts with counterparties;

- development of contracts with counterparties;

- design and support of a virtual office;

- support of notary services;

- representation of interests in state and non-state bodies;

- support services for translation of documents, apostille;

- obtaining an electronic signature;

- issuing a work visa;

- opening a bank account;

- translation services.

Taxes for companies in Turkey

A business in Turkey must pay the following taxes and fees:

- Income tax - 20%.

- VAT - 18%.

- Social insurance - 20.5% of the wage fund.

- Stamp fees for drawing up contracts - 0.15-1.89% of the amount of the document.

- Income tax for individuals is from 15 to 35%, depending on the amount of income.

Taxation and accounting systems in Turkey have many features. An experienced team of accounting and tax accounting specialists will help you deal with all the subtleties.

What questions can be addressed to the team of specialists?

An experienced team of specialists in the field of accounting and tax accounting will advise businessmen on the following issues:

- submission of documents to tax authorities;

- monthly submission of accounting and tax reporting;

- business registration, choice of organizational form, taxation system;

- collection and submission of documents for business registration;

- accounting and tax accounting;

- personnel issues, social contributions, taxes;

- design and support of a virtual office;

- obtaining an electronic signature;

- issuing a work visa;

- representation of interests in tax and social service bodies.

Learn more about how to move your business to another country here.