How to Start a Small Business in Turkey
Regulations regarding the business setup process in a foreign country may differ from your own country, and whether starting a small or big business, it is not an easy process. Before this process, researching the business environment in which you want to set up a company should be the first step. As a foreign business owner, finding a trustworthy consulting company would be beneficial before and during the setup process.
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Benefits of Starting a Small Business in Turkey
Establishing a small business comes with a lot of benefits for business owners. Being your boss provides independence and the freedom to make all the decisions regarding your business success. Financial gain is also one of the most important benefits of starting a small business. Although owning a business solely has a high financial risk, running your business would give you a chance to gain more than working for someone. Being in charge of your business creates learning opportunities by being involved in all the steps of your business. It allows you a better understanding and creative freedom.
Starting a business in a foreign country create several opportunities as well. Turkey with its low operating costs, qualified labor force, stable consumer spending, and incentives provided by the Turkish government offers a lot of advantages for foreigners. Strong consumer spending and local manufacturers who assist and support business owners are also benefits of establishing a business in Turkey. With reasonable operating costs and high incomes, Turkey is one of the most preferred destinations for foreign investors.
Steps to Start a Small Business in Turkey
Establishing a business in Turkey can be seen as challenging but the guidance of a Turkish business partner would be beneficial both for you and your business.
1. Acquiring a potential tax number from a tax office
All the official procedures will require a potential tax number. For starters, your first step should be getting a potential tax number from a tax office. At this step, getting professional help from a business consultant would be beneficial for you.
2. Settling the location of your company
Establishing a business in Turkey can only be possible with the legal address of your company. Whether a virtual or physical office, you should find a location for your company and rent a place. During the renting process, you will need a potential tax number and you should pay the amount of rent from your company’s bank account, not your bank account.
3. Deciding the type of your corporation
There are two main types of corporations for foreign investors: corporate company (JSC) and limited liability company (LLC). For small business operations, a limited liability company would be the best option. The establishment process for a limited liability company would be rather fast, cheap, and easy.
4. Finding an accounting outsourcing company for the company set up process
A professional and trustworthy partner in a foreign country is important for all investors. For all the ins and outs of your business, you will need an accounting outsourcing company that will be your business partner in the long term. Your accounting company will start business establishment procedure and carry out preparation of the master agreement, application of trade registry for an appointment, preparation of tax office documents, and preparation of the power of attorney processes on behalf of your company.
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5. Registering your company legally
For registration of your company, your accountant would apply for a trade registry, tax office and other related government offices. This process would take two or three days to complete. After obtaining the documents from the trade registry office, you should take the signature circular of your company at the notary. A sworn translator also should be ready during the process. You will need to assign power of attorney to your accountant on behalf of you and your company.
6. Opening a bank account
A bank account for your company will be needed to carry out all the financial processes. Although it is an easy procedure, you should be aware of the demands of Turkish banks and should seek advice from your accountant.
Check out: How to Open a Bank Account in Turkey