Business people are an ambitious lot; they always aspire to do more and gain more. Whether it is a larger market share, higher profits, greater brand recognition, or otherwise, entrepreneurs will want more, and that is exactly what Turkey offers in abundance – more of everything.

Strategically located in the middle of the globe connecting Asia to Europe, Turkey is the ultimate location for those looking to elevate their business on a global stage. 

We will take you through what you need to do for company formation in Turkey, but before that, why you should seriously consider setting up shop in Turkey in the first place. So let’s get cracking.

The perfect business climate

Choosing Turkey as the new hub for your business comes with limitless advantages; we will cover the main ones here.

Strategic location – Turkey’s strategic, central location means you can do business with Hong Kong and Vancouver within the same 9 to 5 business day without having to worry about late nights or early mornings.

Equal treatment – Turkish FDI law mandates that both foreign investors and local ones get the same rights, must abide by the same laws, and work under the same conditions.

Great business environment – Turkey has one of the best business environments in the world, allowing SMEs to thrive within a bustling market. Turkey ranks higher than Switzerland, Netherlands, Spain, Belgium, and many others on the ease of doing business index. 

Low overheads – Turkey has a competitive edge when it comes to cost control. Running a business on a lower operating cost margin is a framework for success. Take Class A Office rentals, for example; in Istanbul, the average annual rent per square meter is 204 USD, compared to 1002 USD in New York or 1762 USD in London. 

Robust workforce – Turkey has more skilled labor available than Germany, New Zealand, Austria, and more. And that workforce comes at a much more reasonable price, take software engineers, for example, in Turkey, their average salary is 922 USD per month, while in the UK, the same employee would earn around 6070 USD per month. 

An abundance of incentives – The Turkish government is pro-business, and that is great news for you, as it has an absurd amount of incentives for investors ranging from VAT exemption, corporate tax reduction, customs duty exemptions, interest rate support, and even cash support, depending on your project, the location of your company, and the nature of the business. 

It is easy to get to – Setting up a business in Turkey is simple; we will get to that in a bit, but one major factor that people should keep in mind is that it isn’t just the business environment you should look out for, but how you can get to that environment. It would be a shame to put in all the planning, capital, and effort into a business in a new country then fight for years to get a residency permit to allow you to actively manage it, which may be the case in many countries such as the US, Canada, New Zealand, and many others. Turkey solves this through its citizenship by investment program, allowing investors who purchase real estate for 250,000 USD to become Turkish citizens. An elegant solution, especially if you buy an office space along with a new house. 

Honorable mentions – There are so many other attractions in turkey that warrant more exploration, but we will just give you the gist of them:

• Greater gender inclusion in science than the EU. 
• Living costs are extremely affordable, with average consumer prices in Istanbul a staggering 248% lower than London.
• An amazing lifestyle in one of the world’s most cultured nations. 
• English is prevalent throughout the major cities and the new workforce.
• The ludicrous gastronomic landscape makes for some outstanding business lunches.
• Istanbul’s airport is one of the largest globally, with direct flights to almost every country on the globe. 

So now you know why you should set up a company in Turkey, let’s take a look at how you can do that.

Company Formation in Turkey

Registering a business in Turkey is extremely simple, and it takes eight days on average to have your company up and running. Here are the main steps you need to take.

1. Choose a company type, you can choose from:

• Joint Stock Company (JSC)
• Limited Liability Company (LLC)
• Cooperative Company
• Collective Company
• Commandite Company​

1. Submit the memorandum and articles of association online through the Central Registry Record System (MERSIS)
2. Notarize and execute all company documents such as articles of incorporation and shareholder identification.
3. Obtain a tax identity numbers for non-Turkish shareholders
4. Deposit 0.04% of the capital to the account of the Competition Authority via the Trade Registry Office pay office.
5. Open a company bank account and deposit at least 25% of the startup capital.
6. Apply for business registration at the Trade Registry Office and certify the company’s legal books.
7. Obtain registry certification along with tax and social security registration.
8. Issue a signature circular from the Trade Registry Office. 

And that’s it! Your business is ready to go. You can also register a Branch or a Liason office, which are not Turkish entities and hence require a slightly different registration.

The documentation needed to establish a company is also fairly straightforward, but it can differ depending on the type of company you want to register. The main documents needed to register a LLC, the most popular type, are:

• Articles of association
• Company contract with approved signatures of founders
• Shareholder identification
• Form of establishment
• Written statements of non-partner members of the board of directors that they accept their duty
• Signature declarations of company directors
• Document of payment indicating that the Competition Authority’s share has been paid

Eight steps, seven documents, and you have yourself a company in one of the most economically fertile locations in the world. Elegantly simple.

If you would like to know more about how you can set up a company in Turkey, where the best locations for new start ups are, and what type of company will suit your needs best, contact us today for a free, comprehensive consultation.