Starting a company of any size and type in a different
country is not an easy task. You have to do a lot of research and understand
the tax requirements and other essential things to ensure that your efforts do
not go to waste and everything happens seamlessly. However, starting a business
in Turkey as a foreigner can have many benefits.
The Turkish economy is growing at a rapid rate, and as a trading hub between Asia and Europe, Turkey is a highly investment-friendly country.
So, if you’re a foreigner looking to explore the Turkish market and start your business, today’s blog post can help provide you with all the essential information you need to know.
How to Start a Business in Turkey as a Foreigner
Here is a detailed step-by-step guideline on how you can invest and set up a business in Turkey:
- You need to start by getting a tax number from the tax office.
- Hunt for a suitable location for your company. You can browse Prime Property Turkey’s list of commercial properties to find the right one for your company. Having a place for your business office can provide you with a legal address for your company.
- When you pay the rent for the office, you have to use your business’ bank account, not your private bank account, to do so.
- Next, select the corporation type. The two types of corporations suitable for foreigners are limited liability companies (LLC) and corporate companies (JSC). LLC works best for smaller companies because of the rapid establishment process.
- Hire an accounting outsourcing company to act as a business partner and help set up your business. The accounting company will handle all the intricacies and processes involved in establishing a business. They will aid in making a power of attorney, arranging tax office documents and much more.
- The next step is to register for the company. The accountant will apply for a trade registry, which can take about two to three days. Once the documents are received from the trade registry office, the signature circular of the business has to be taken to the notary, along with the sworn translator. Your accountant will need a POA on your behalf to move further in the process.
- Lastly, you have to open a bank account for your business and make sure you have all the documents you need when you make your trip to the bank for this. Turkish banks tend to have specific requirements that your accountant can guide you about.
Tips for Establishing a Company in Turkey as a Foreigner
Research the Turkish market thoroughly before you start a business in Turkey. Connect with other foreigners who own businesses here. Talk to your lawyer and other professionals and get educated about the nitty-gritty of the market. Doing this will allow you to know which business model works, and you can make sure you don’t make the same mistakes as others did before you.
Make sure the business plan you create is successful by gathering crucial information about your chosen business model and all the costs related to it.
Language can be an issue for you in setting up your company since all the documents and paperwork will be in Turkish. Eliciting the help of a Turkish speaker can make things significantly easy for you.
Benefits of Starting a Business in Turkey as a Foreigner
The benefits of starting a company in Turkey as a foreigner are numerous. Firstly, the Turkish market is unique because it opens doors to Asia, Europe and the Middle East for business owners.
The costs for operating a business are also significantly more affordable than those in Europe. Students graduating from Turkish universities are highly qualified, and since countless fresh graduates enter the job market every year, Turkey has plenty of young, skilled labor to work with.
Furthermore, if you plan your business well enough, your business can bring in excellent ROI thanks to the high local spending power.
Further Reading: Setting Up a Business in Turkey As a Foreigner
Types of Businesses Foreigners Can Establish in Turkey
Many foreigners establish businesses related to the tourism sector. The most popular types of companies foreigners prefer to set up include shops, hotels, restaurants, etc.
Businesses such as foreign currency exchange offices, banks, etc., cannot be established by expats without the permission of the Ministry of Commerce and Industry.
A lawyer can offer you proper guidance regarding what businesses foreigners are allowed to set up in Turkey.
Taxes in Turkey
Companies established in Turkey will be required to pay taxes. Since the taxes in Turkey change from time to time, an accountant can help you understand all the taxes you need to pay for your business to operate in Turkey.
Acquire Turkish Citizenship by Establishing a Business in Turkey
You can get Turkish citizenship by establishing a business in Turkey and creating 50 jobs for locals. Moreover, you can also obtain Turkish citizenship and a passport by purchasing real estate worth a minimum of 400,000 USD and agreeing not to sell it for three years.
Connect with Prime Property Turkey
Prime Property Turkey can offer an extensive list of commercial real estate options for foreign investors to invest in and also assist clients in the citizenship application process.
You can read our blog on 6 Ways to Become a Citizen in Turkey to learn more about the Turkish Citizenship by Investment Program.
Note: The information provided in this blog post is for guidance purposes only.
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