Thanks to its growing economy, qualitative and cost-effective workforce excess, investment potential, and convenient location, Turkey has become an inviting investment center for not only local investors but also foreign investors who want to start a company in Turkey.
Government promotion has been ensured with the acception of the Foreign Direct Investment Law, foreigners have been allowed to have the same rights and obligations with the local investors about starting a company in Turkey. According to this, international investors who want to start a company in Turkey can establish all types of companies stated in the Turkish Commercial Code.
There are several company types in the Turkish Commercial Code. In accordance with the principle of equality, which is based on the Foreign Direct Investment Law Number 4875 adopted in 2003, foreigners possess the right to start a company in Turkey same as Turkish people. Each of those companies includes differences in terms of the establishment procedure and specialties. It will be useful to receive a professional consultancy to choose a convenient one from these companies and to fulfill the company’s conditions.
Conditions for starting a company for foreign investors are the same as the Turkish investors. At this point, where to apply to start a company, is a frequently asked question. First, a company contract is made by the investors in the establishment procedure of stock company, open company, limited partnership, limited company, cooperative association, which are company types in Turkey.
This contract has to be affirmed by the notary public. Then, signature declarations are prepared and applied to the Trade Registry Office.
The necessary documents and procedures for a real person who is not a Turkish citizen or a legal entity who is established outside of Turkey can be divided into two sections: trade registry procedures and tax administration procedures.
The requirements to start a company can be listed roughly like this:
What are the advantages of starting a company in Turkey for foreigners?
Because of the provided government promotion, the cost of starting a company in Turkey is highly affordable for foreigners. Thanks to the Foreign Direct Investment Law which was accepted in 2003, foreign investors are treated equally with Turkish companies in Turkey and also have more paramount rights at some points. For example, expropriation or nationalization of foreign direct investment is limited according to this law. In addition to this, foreign investors can freely transfer profit, sales, liquidation and compensation, license, management and earnings which are provided with similar agreements in return, that arising from their activities in Turkey, to abroad.
Work permit convenience is provided to these companies also in terms of employment of foreign staff. In addition to all these, foreigners, who want to invest in Turkey, can benefit from tax deductions, investment destination grants, insurance premiums and similar government promotions.
Corporate tax for limited companies and stock companies in Turkey is 20%. In addition to this, people are responsible for paying income tax from their earnings during the year. The rate of the income tax after the establishment of a sole proprietorship is between 15% and 35%.
Turkey is a state party that agreements, which prevents a foreign investor from paying double tax both to the foreigner’s country and to Turkey. The number of countries that become a party to this agreement is increasing day by day, and investing in Turkey is getting easier. Besides, the government offers tax exemptions to foreign investors at various times.
As is seen, foreign investors have many legal and commercial assurances in Turkey. But, to benefit from these privileges, firstly a solid company basis must be created.
Where should I start from?
Synergia is a well-experienced company for starting a company for foreign investors in Turkey. It offers special services with its experienced team for carrying out all the mentioned-above processes and making it easier.
If you want to start a company and to receive consultancy from the experienced team, you can examine the Digital Company Package which is offered by Synergia for you. You can also receive free consultancy by filling up the form on the page.