FAQs

  1. I am a foreign person or legal entity. Can I still set up a company in Turkey?

    Yes, every person or legal entity from all nationalities can set up a company in Turkey. Foreigners are allowed to have full ownership of a Turkish company with sole directorship.

  2. Do I need to assign any Turkish citizen as general directors to my company?

    No, companies can assign foreigners as a general director to their companies. There is no requirement stating general director’s nationality for Turkish company in local regulations or laws.

  3. Are there any differences in Turkey between limited liability and joint stock companies?

    One of the most significant difference between limited liability and joint stock companies in Turkey is the incentives on transfer of shares under some circumstances. Apart from this, the basic differences are shown in the table below:

    Limited liability companyJoint stock company
    LegalIndependent – considered as a Turkish companyIndependent – considered as a Turkish company
    Taxable statusLiability to taxation on worldwide income.
    Tax resident
    Liability to taxation on worldwide income.
    Tax resident
    Corporate income taxMainstream corporate income tax at 22%Mainstream corporate income tax at 22%
    Dividend withholding taxNot applicable unless profits are distributed to individuals and
    foreign corporate shareholders
    Not applicable unless profits are distributed to individuals and
    foreign corporate shareholders
    Listing on stock exchangeNot allowedAllowed
    Transfer of shares inside/outside TurkeyAllowedAllowed
    Availability of incentivesYesYes
    Revaluation of fixed assetsInflation accountingInflation accounting
    Inflation accountingApplicable on non-monetary items in the case of certain conditions
    being realised simultaneously
    Applicable on non-monetary items in the case of certain conditions
    being realised simultaneously
    BillingBilling in foreign currency to Turkish entities is not allowed
    Indexation of TRY amount on invoice to foreign currency is possible
    Billing in foreign currency to Turkish entities is not allowed
    Indexation of TRY amount on invoice to foreign currency is possible
    Foreign currency usageAllowedAllowed
    Deposit account in Turkey/abroadAllowedAllowed

  4. Can I employ foreign employees?

    Yes, you can. However, companies must employ at least 5 Turkish employees to employ one foreign employee. There are some exceptions but this is valid for most of the cases.

  5. Are there any differences in Turkey for foreigners in terms of taxation?

    No, there are not. All companies in Turkey accepted as a Turkish Company. Therefore there is no difference in terms of taxation. Companies which are owned by foreign shareholders are subject to same taxes as companies which are owned by Turkish citizen shareholders.

  6. How long does it take to set up a company in Turkey?

    It takes approximately 2-3 working days to establish a company in Turkey except inspection part. Inspectors of related tax office come and visit your registered address. Inspection paper can be signed by our team if we can receive required POA from you. You can start to do business after this inspection.

  7. How much does it cost to set up a company in Turkey?

    The cost depends on the company type, shareholder type and other variables. Approximate minimum fees should be paid relevant government authorities shown below:

    Limited Liability Company Joint Stock Company
    Notary400,00 TRYNotary1.000,00 TRY
    Tax Office100,00 TRYTax Office100,00 TRY
    Trade Registry1.260,00 TRYTrade Registry1.300,00 TRY
    Certified Translator500,00 TRYCertified Translator500,00 TRY
    Total2.260,00 TRY Total2.900,00 TRY

  8. Do I need to be physically in Turkey to set up a company?

    No, you do not. We can lead your company’s establishment process in Turkey with an appropriate POA given by you. Signatory circulars can be taken from Turkish Consulates at the end of company establishment.

  9. Will my details publish in public records as a shareholder?

    Yes, your company’s AOA (article of association) will be published in Turkish Trade Registry Newspaper. This newspaper is open to public both physically and electronically. You may also print bearer shares and prevent this in case you decide to set up Joint Stock Company.

  10. Can I check whether the company title is available before company establishment process?

    Yes, please do not hesitate to contact with Bilgener Team. We are able to check this from related government authorities and inform you within a very short time.

  11. Can I make any changes regarding shareholder structure, company name and etc. after incorporation?

    Yes, Bilgener Team can help you to prepare required resolutions and documents needed to submit to trade registry offices with minimized costs.

  12. What are type of taxes I may face after company set up?

    Companies submit some periodical declarations to their tax offices in Turkey. Tax declarations have to be approved and submitted by CPAs. Therefore companies must have a service contract with CPAs. Generally companies must submit following declarations to tax offices periodically:

    1. VAT (Monthly)

    VAT declaration is submitted to relevant tax authorities’ electronic system for each month at the latest 24th of following month. VAT declaration must be submitted even if your company does not have any activity. Please visit our guide’s VAT section in order to get more information about VAT tax.

    1. Withholding Tax-Social Security (Monthly/Quarterly)

    Withholding tax declaration is submitted to relevant tax authorities’ electronic system for each month at the latest 23rd of following month. Companies are obliged to pay income tax and social security premiums of their employees under this declaration. Companies may choose to declare withholding tax declaration in quarter periods if numbers of employees are less than 10. Please visit our guide’s personnel income tax and social security sections in order to get more information about withholding and social security tax.

    1. Stamp Tax (Monthly)

    Stamp tax declaration is submitted to relevant tax authorities’ electronic system for each month at the latest 23rd of following month. Stamp tax applies to a wide range of documents, including (but not limited to) contracts, agreements, notes payable, letters of credit and letters of guarantee, financial statements and payrolls. Companies do not have to submit stamp tax declarations if they do not sign contracts for relevant month. Please visit our guide’s stamp tax section in order to get more information about stamp tax.

    1. Advance Corporate Income Tax (Quarterly)

    Advance corporate income tax declaration is submitted to relevant tax authorities’ electronic system for each quarter at the latest 14th of following second month. Income of corporations must be declared in each quarter. Total taxes paid with advance corporate income tax declaration within the year are deductible from annual corporate income tax declaration.

    1. Corporate Income Tax Declaration (Annually)

    Corporate income tax declaration is submitted to relevant tax authorities’ electronic system for each year at the latest 25th of following fourth month of financial year.

    You can find more detailed information in the guide.

  13. Can I make profit distribution as a foreign shareholder and transfer dividend to my resident country?

    Yes, you can. Foreign shareholder can make profit distribution after withholding tax is paid according to double tax treaty between Turkey and resident country of shareholder. There is no restriction to transfer this profit to your bank account in resident country after dividend withholding tax is paid.

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    PHONE

    +12 (0) 345 678 9

    EMAIL

    info@company.com