Turkey, strategically bridging Europe and Asia, presents lucrative opportunities for foreign entrepreneurs looking to establish a business. The nation boasts a dynamic economy, youthful workforce, and favorable geographic location. Here’s a comprehensive guide on how a foreigner can register a company in Turkey.
**1. Choose the Type of Company**
In Turkey, the most common types of business entities are the Joint Stock Company (JSC) and the Limited Liability Company (LLC). Foreigners can own 100% of either. The LLC is particularly popular due to its simpler structure and fewer requirements.
**2. Preparation of the Articles of Association**
The Articles of Association is a legal document that enumerates the details about the company, including its name, objectives, shareholder structure, and more. It needs the approval of the Turkish Trade Registry.
**3. Notarization of Documents**
The following documents must be notarized:
– Copies of the passport of each foreign shareholder.
– The Articles of Association (if not already approved electronically).
– A document showing the residence address of foreign shareholders.
**4. Obtain a Potential Tax Number**
Every foreign shareholder must obtain a potential tax number from the local tax office. This number is crucial for subsequent steps and is relatively straightforward to acquire with the presentation of a passport.
**5. Stipulate and Deposit the Capital**
For an LLC, the minimum capital requirement is 10,000 Turkish Lira, while for a JSC, it is 50,000 Turkish Lira. A portion of this capital must be deposited in an escrow account in a Turkish bank.
**6. Register at the Trade Registry Office**
Submit the following documents to the Trade Registry Office:
– Articles of Association.
– Notarized copies of shareholder passports.
– Proof of deposited capital.
– A notarized signature declaration of the managers.
– Copies of the potential tax numbers.
The Trade Registry Office will then issue a registration certificate.
**7. Notification to the Tax Office**
Once the company is registered, it must be notified to the local Tax Office to acquire a tax registration certificate. This involves submitting various incorporation documents and proof of registration.
**8. Notarizing the Company Books**
Special company books (like the minute book, share ledger, etc.) need to be legalized by a notary public. These books are essential for keeping accurate records of the company’s activities and financials.
**9. Obtaining the Signature Circular**
The company’s authorized signatories must sign the signature circular at a notary public. This document ensures that these individuals can legally sign on behalf of the company.
**10. Optional: Apply for a Work Permit**
Although not strictly necessary for the registration, if a foreign shareholder wishes to reside and work in Turkey, they must apply for a work permit. It requires the sponsorship of the Turkish company and approval from the Ministry of Labour and Social Security.
**Conclusion**
Registering a company in Turkey can be a multifaceted process, but with careful preparation and by following these steps, foreign entrepreneurs can successfully set up their businesses in a country that promises great potential due to its thriving economy, strategic location, and pro-business environment. Turkey’s comprehensive legal framework and supportive regulatory environment make it an attractive destination for foreign investment.
Here are some suggested related links about how a foreigner can register a company in Turkey:
Investment Office of the Presidency of the Republic of Turkey
Union of Chambers and Commodity Exchanges of Turkey (TOBB)
Istanbul Chamber of Commerce (ITO)
Small and Medium Enterprises Development Organization of Turkey (KOSGEB)