Establishing a Company in Turkey


Establishing a Company in Turkey

Turkey is one of the most important countries that should be preferred to establish a company. Turkey, which connects Asia, Europe and the Middle East due to its geographical location and is also a member of the Organization for Economic Co-operation and Development (OECD), provides great convenience to entrepreneurs who want to establish a company with its tax system, state incentives and economic structure.

In Turkey, both local investors and foreign investors are subject to the same rights and obligations. The rights of foreign investors are regulated by the Foreign Direct Investments Law No. 4875. With the relevant law, it is aimed to encourage and protect foreign investments.

Unless otherwise stipulated by international agreements and special law provisions, within the scope of the relevant law;

Foreign direct investment in Turkey by foreign investors is free.

Foreign investors are subject to equal treatment with domestic investors.

The minimum capital for establishing a Limited Liability Company is 10.000 TL.

A limited liability company is formed with one or more natural persons or legal entities who have formed the company title and predetermined (fixed) capital, have liability limited to the assets of the company. Persons who own shares are liable to the limited liability company with capital shares. A limited liability company may be formed from at least one and at most fifty natural and legal person partners with a minimum capital. Again, all of the partners can be foreign nationals and it is not required that the directors are Turkish citizens and resident in Turkey

According to Article 503 of the Turkish Commercial Code No. 6762, “Limited liability company is a type of company established by one or more real / legal persons under the roof of trade name. According to the current law, the main tax types are; The rate of Corporate Tax is 23% Value Added Tax (VAT) and the rate is 18%.

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