Company registration in Turkey is another excellent pathway for relocation and securing a Turkish passport! By establishing your company in Turkey, you can operate a business generating revenue in US Dollars or Turkish Lira, while seamlessly obtaining Turkish residency and ultimately achieving citizenship (a Turkish passport).
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Benefits of Registering a Company in Turkey
Before launching any commercial activity, it is vital to carefully evaluate the exact pros and cons of your business plan to accurately forecast potential profit and loss. In this section, we provide a concise overview of the key advantages of setting up a business and registering a company in Turkey.
Access to Global Markets & International Trade
Due to severe economic sanctions, international trade and investment have unfortunately been challenging for many investors over the years. Fortunately, by registering a company in Turkey, you can engage with global markets without any legal or banking hurdles, allowing you to execute any business model with ease. Furthermore, Turkey’s strategic geographical position offers unparalleled connectivity to Europe and the Middle East, unlocking exceptional growth opportunities for your enterprise.
Additionally, nearly every major global corporation maintains a presence or branch in Turkey, a factor that can significantly boost your strategic business goals and market expansion.
Earning in USD within a Dynamic Economy
With a Gross Domestic Product (GDP) exceeding $1.1 trillion in 2023, Turkey ranks 18th globally and 7th in Europe! Although Turkey, like many countries worldwide, faces certain economic challenges, it remains a major economic powerhouse. Depending on your business model, setting up a company here allows you to generate income in either US Dollars or Turkish Lira. With a population of 80 million (mostly young) and an incredible influx of foreign tourists, the Turkish market offers an ideal landscape for earning in USD!
Flexible and Straightforward Tax Regulations
Registering a company in Turkey comes without the bureaucratic hurdles found in many other nations. The Turkish government’s policy is heavily geared toward attracting foreign investors, meaning they do not impose strict barriers on setting up a new business. In fact, administrative procedures move significantly faster and smoother here.
Obtaining Turkish Residency Through Company Registration
By registering a company, you can easily secure Turkish residency. After 5 years of paying social security/insurance, you become eligible to apply for Turkish citizenship (a passport)! Many expats have successfully utilized this exact pathway to live and work here with their families, have acquired their Turkish passports, and are now enjoying a highly prosperous lifestyle.
Cost of Company Registration in Turkey
The overall costs of company registration in Turkey vary depending on the type of company and the initial capital investment!
For a detailed and precise cost breakdown, feel free to contact iHomes Company.
iHomes Company: 00905526306000
Generally speaking, the cost of establishing a company in Turkey from A to Z is approximately $1,000.
Types of Companies in Turkey
Broadly speaking, you can register several types of business entities in Turkey. However, we will briefly cover only the two most common options, as other company structures involve highly complex procedures and are generally less practical for foreign individuals.
1- Sole Proprietorship (Şahıs Şirketi)
As the name suggests, a sole proprietorship can have only one shareholder. This type of entity is ideal for individuals looking to operate a small personal business in a single field, such as a local shop, a restaurant, etc. The main advantage is its low setup cost and minimal paperwork; however, the downside is that you will face certain limitations later on when trying to scale your business. Therefore, it is essential to consult with us before choosing your company type.
Important Note!
Please note that you cannot obtain Turkish residency by registering a Sole Proprietorship!
2- Limited Liability Company / LLC (Limited Şirketi)
A Limited Liability Company in Turkey must have a minimum of one and a maximum of 50 shareholders. In accordance with regulations, the profit and loss of each shareholder are determined based on the respective share of each natural or legal person. An LLC offers numerous advantages: multiple individuals (natural or legal) can be shareholders, you can define multiple business activities within the company’s articles of association, and most importantly, it qualifies you for a commercial residency permit!
Important Note!
By registering a Limited Liability Company (LLC), all company shareholders can secure commercial residency permits for themselves and their immediate families!
Other Types of Companies in Turkey
3- Financial Institutions (Currency Exchange Offices)
4- Joint-Stock Company (Private or Public) or Anonim Şirket
5- Group Company (Kollektif Şirket)
6- Cooperative Company (Kooperatif Şirket)
Required Documents for Company Registration
- Original passport valid for at least 6 months
- 4 biometric passport-sized photos
- Home country address and phone number
- Turkish address and phone number
- Notary public procedures and power of attorney issuance for registration
- Registration of signature samples
Steps to Register a Company in Turkey
To successfully establish your company in Turkey, the following steps must be completed:
- Draft the company’s articles of association
- Obtain the official company registration forms
- Acquire a tax number from the Turkish Treasury
- Get the articles of association certified by a Turkish notary public
- Register the company with the Turkish Chamber of Commerce
- Publish the announcement in the Official Gazette
- Obtain notarized approval for the power of attorney and signature circular
- Process the Turkish Treasury forms
- Submit the previous forms to the Turkish Tax Office to schedule an address verification audit for your company office
- Treasury tax inspectors will conduct an on-site visit to verify your official business address
- Obtain the official corporate tax number following final approval
- Acquire the commercial registration card (Chamber of Commerce card)
- Issue certification for accounting services
- Open a corporate bank account
- Appoint a certified public accountant (CPA)
Timeframe for Company Registration in Turkey
Fortunately, the company registration process in Turkey is exceptionally fast, taking a maximum of 5 to 10 business days. And don’t worry about finding an office space—we’ve got you fully covered!
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Taxes and Maintenance Costs for a Company in Turkey
Tax compliance in Turkey is strictly enforced, and avoiding it is virtually impossible. However, by hiring a highly professional public accountant (Müşavir), you can optimize and minimize your tax liabilities as much as legally possible. Here are the primary types of taxes you will need to account for:
■ Office Rental Withholding Tax (Stoppage): 23%
■ Value Added Tax (VAT / KDV): ranging from 20% to 25%
When it comes to corporate maintenance and operating expenses, you should factor in the following costs:
■ Office Expenses (Rent and Utilities)
If you choose to lease a dedicated, independent office, costs will vary based on location and size; however, you should expect a minimum of $500 for rent and at least $200 for utilities. That said, you don’t need to incur such heavy expenses at the beginning. Alternatively, you can opt for a hot desk or a shared workspace, which, depending on the location and setup, starts from approximately 5,000 Turkish Lira per month.
■ Employee Payroll and Social Security
This depends entirely on your headcount. However, as a general rule of thumb, you should budget at least $700 per employee to cover their social security contributions (SGK) and base salary (matching the official minimum wage set by the Ministry of Labor).
While registering a company in Turkey is remarkably straightforward and quick, it involves numerous legal and regulatory nuances. Navigating this without professional guidance can lead to unexpected and costly surprises! Therefore, before taking any steps, we highly recommend contacting iHomes Company so we can provide you with the most optimal, tailored solutions. From incorporation to launching your day-to-day business operations in Turkey, we will be right by your side at every stage.
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Be sure to also read the following guides:
■ The Complete Guide to Obtaining Turkish Citizenship (Passport)