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Essential Steps to Launch Your Business in Turkey - The Smart Way
The conditions for setting up a business and share transfer are the same as those applied to local investors. International investors may establish any form of company set out in the Turkish Commercial Code (TCC), which offers a corporate governance approach that meets international standards, fosters private equity and public offering activities, creates transparency in managing operations and aligns the Turkish business environment with EU legislation as well as with the EU accession process.
Turkey has introduced reforms with a view to making it easier to do business in Turkey in order to enhance the investment environment, eliminating red tape in setting up a business and minimizing costs and procedures. To this end, establishing a company is now only carried out at Trade Registry Offices located in Chambers of Commerce and designed to be a ‘one-stop shop’. The process is completed within the same day.
Establishing a business in Turkey doesn’t have to be a maze of paperwork, bureaucracy, and legal jargon—especially if you play it smart.
Imagine skipping the headaches and letting experts handle the heavy lifting for you. Sounds ideal, right?
Let’s take a smart approach to setting up your business, starting with the ultimate secret weapon: hiring an accountant.
Hire an Accountant
First step when starting a business in Turkey is to hire an accountant.
In most guides, hiring an accountant is often listed as the last step in starting a business. But let’s be honest—that’s a rookie mistake. Navigating the legal and economic system of a foreign country like Turkey requires expertise from the very beginning.
That’s why hiring an experienced accountant, like Monetics, should be your first move.
From understanding the legal framework to handling tax numbers, company registration, and beyond, a good accountant ensures you avoid costly mistakes and wasted time.
Hiring a certified accountant is a legal requirement in Turkey. Your accountant will handle financial reporting, tax filings, and payroll management, ensuring compliance with Turkish accounting standards. A knowledgeable accountant can also help you take advantage of tax incentives and manage your cash flow effectively.
Understand the Legal Frameworks
Before starting a business in Turkey, familiarize yourself with the country's laws and regulations.
Turkey’s legal framework covers company establishment procedures, foreign ownership rights, taxation, and labor laws. It's vital to understand these rules to ensure compliance and avoid legal complications later.
Consulting with a legal expert or business advisor is highly recommended to stay informed about the latest regulations and processes.
Choose Your Legal Structure
Selecting the right business structure is a critical decision that will impact taxation, liability, and operational flexibility. The most common options for foreign investors include:
- Establishing a Limited Liability Company (LLC): Ideal for small to medium-sized businesses. Limited Liability Companies require minimum 50.000TL capital.
- Establishing a Joint Stock Company (JSC): Suitable for larger ventures or public trading. Joint Stock Companies require minimum 250.000TL capital as well as at least 5 shareholders.
- Establishing a Branch Office: Allows an existing foreign company to operate in Turkey.
- Establishing a Liaison Office: For companies looking to explore the Turkish market without conducting commercial activities.
Obtain a Tax Number
A tax number is essential for all legal and financial activities in Turkey. You can obtain it from the local tax office by providing your passport and other identification documents. This number will be required for tasks such as opening a bank account, registering your business, and paying taxes.
Register Your Company
Registering your business is one of the most crucial steps. This involves preparing and submitting the necessary documents to the Trade Registry Office. These documents typically include:
· Articles of Association
· Founders' identification
· Proof of address for the business
· Capital deposit receipt
Once registered, your company will be listed in the Turkish Trade Registry Gazette.
Secure a Legal Adress
Every business in Turkey must have a registered legal address. This can either be a physical office space or a virtual office for smaller operations. The address will be used for correspondence with government authorities and should comply with zoning regulations.
Open a Business Bank Account
Opening a Turkish business bank account is mandatory for depositing your company’s initial capital. Choose a reputable bank that offers services tailored to foreign investors. You’ll need documents like your tax number, company registration certificate, and proof of identity to set up the account.
Obtain Necessary Licenses and Permits
Depending on your industry, you may need specific licenses or permits to operate legally. For example:
Food businesses require health and hygiene certificates.
Construction companies need additional safety permits.
Import/export businesses must register with customs authorities.
Research the permits applicable to your business and ensure they are obtained before starting operations.
Register Your Social Security
If your business plans to hire employees, you must register with the Social Security Institution (SGK). This ensures your employees have access to healthcare and other benefits. You’ll need to submit employee contracts, company registration documents, and other required paperwork to complete the process.
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