Article by Semiha Unal: Company Formation in Turkey

You wish to set up a business in Turkey. You are aware of the benefits: promising developments on the economic front, a cheap and skilled workforce, favourable government policies including a raft of financial incentives, an enormous market and a positive outlook. 

But what then?

Turkey, like every other country, has its own specific laws and regulations for setting up businesses. You want to come to grips with these as quickly as possible.

You want to benefit fully from the various schemes and opportunities that are available. You cannot afford to waste time due to not knowing how to navigate through the various procedures. So you will need assistance from an organisation that understands the laws and regulations, a partner that can guide you through the various processes and help you avoid the pitfalls.

And last but not least: a partner that speaks your language.

We are assuming you have already been through the ‘market research’ and ‘Turkey Business Introduction’ phases. You have a sound business plan in place. You have completed all these phases on your own or with the support of another partner. You are now ready to proceed with the incorporation stage. What remains to be done?

The next step is to make a choice on the best legal form to choose for your business in Turkey. Accordingly, All statutory obligations governing the incorporation of your company need to be complied with.

How does this process work?

To begin with, we compile information specifically in relation to:

• Number of shareholders
• Type of partner(s) (legal entity, nationality)
• Place of business
• Start-up capital
• Board of Directors

Based on this information, we proceed to advise you with regard to:

• The most suitable legal form for your company (Liaison or Branch office, plc or Ltd company)
• The content of the Articles of Association

We also take care of the practical aspects of setting up a business, such as:

• Trademark registration
• Draft Label Contract
• General Terms and Conditions
• Translation of texts: e.g. website, company presentations, house regulations, job descriptions, General Terms and Conditions
• Payroll

The costs of setting up a business in Turkey will depend on your own specific requirements. As soon as we know what you want, we will send you a list of the relevant documentation and submit an offer. The incorporation of a company generally takes about 7-10 days. Registration of the company can be completed in two days providing the client has furnished us with the requisite notarially certified documents.

What do we provide you with specifically?

• Information on the legal forms for companies under Turkish Commercial Law.
• Comparison of advantages and disadvantages relevant to the legal forms.
• Documents and information required by shareholders (persons/companies) when setting up a business.
• Documents and information required by the person who will be the manager of the business.
• A sample of the Annual Activities Declaration Form (standard form known as Appendix 1) which companies with non-resident shareholders are required to complete each year in the month of May.
• Other information relating to foreign investments.
• Rules and procedures with regard to the payment of share capital.
• Taxes payable in respect of business activities, employees and information on personal taxes payable by shareholders who will be domiciled in Turkey.
• Mandatory requirements for employees.
• Tax requirements governing rental payments.

We arrange for the listing of the business with the Commercial Register and with the Chamber of Commerce. We also offer to furnish our clients with their first tax returns together with a chart showing how much tax will be payable by the company. Once we have processed the requisite legal and tax registrations, the company will be ready to function and to conduct its business.

08.10.2013

Semiha UNAL (Managing Director)
S4U Business Management Consulting and Foreign Trade Limited