4 Steps to establish a company in Turkey as a foreigner

There are a lot of advantages to establish a company as a foreigner in Turkey. The government is improving continuously the laws to encourage investments.

A lot of foreigners are, therefore, searching for ways to establish their companies in Turkey. We are here to answer their questions.

We included here the legal procedures and some important points about the subject.

We advise you to read the whole article to know all your options.

Steps to establish a company in Turkey as a foreigner

To help you, please read the answers to the following questions.

1. Do I have the right to establish a company as a foreigner?
2. Which type of company can I establish as a foreigner?
3. What are the procedures to establish a company in Turkey as a foreigner?
4. What are the advantages of foreigners Establishing a Company in Turkey?

We begin.

1. Do I have the right to establish a company as a foreigner?

By law, the foreigner has the right to establish companies in Turkey.

This law also gives to the foreigner the right to freedom of investment, equal rights and advantages of investors.

It also gave extra advantages to foreigner investors.

For of all, we should know that the company establishment and commercial activities of any company regardless the nationality of the owner, are subject to the Turkish Commercial Code and the Turkish Code of Obligations.

Finally, we should mention that foreign workers need a working permit to practice on the Turkish territory.

Some companies are required to obtain pre-approval from the ministry before establishment and clarify their activities.

Example of those companies:

• Insurance companies
• Exchange offices
• Banks
• Leasing companies
• Surveillance companies
• Independent audit companies
• .

Please take the time to check the laws and the pre-qualification requirements for your activity.

If you need a pre-qualification or think you may need one.

We advise you to work with an experienced lawyer.

If you need one, here is the link to the website of a lawyer we trust.

Website : cglegalhukuk.com

2. Which type of company can I establish as a foreigner?

There are various types of companies that can be established in Turkey.

Foreigners are granted the right to open any type of company a Turkish person has the right to establish.

So, what are the commercial companies that foreigners can establish in Turkey?

• In terms of sole ownerships “Şahıs şirket”, the types are Unlimited company “Kollektif Şirket”, Limited Company “Komandit Şirket”, Ordinary Company “Adi Şirket” and Cooperative Company “Kooperatif Şirket”.

The foreigners have the right to establish companies in terms of capital companies “sermaye şirket”; Incorporated company “Anonim Şirket”, Limited company “Limited Şirket” and Limited Partnership with Shared Capital “Sermayesi Paylara Bölünmüş Komandit Şirket”.

The conditions for establishing a company in Turkey for foreigners vary according to which type of company the foreigner will establish.

3. What are the procedures to establish a company in Turkey as a foreigner?

Before making an official request to establish their company, foreigners must complete certain procedures and preliminary preparations for the establishment of a company.

In this context, the type of company to be established should be determined, a main contract should be prepared according to the activities to be carried out within the scope of the company, and the physical and material requirements of the company should meet.

It is very important to get legal support during the preliminary preparation process.

The basic procedure to be followed with the completion of the preparatory process is as follows:

1. Preparation of the articles of association of the company,
2. Submission of the record and articles of association via MERSIS system,
3. Arranging and notarizing documents and papers,
4. Obtaining potential tax number of the company,
5. Depositing a part of the capital to the bank account,
6. Depositing a portion of the capital into the company bank account,
7. Applying to the Trade Registry Office for registration,
8. Registration of the legal books of the company,
9. Requesting the company establishment statement from the tax office,
10. Arrangement of signature circular,
11. Transferring certain documents to the e-TUYS system.

Other requirements and documents may be needed along the process depending on the type of company and the activity to be exercised through it.

4. What are the advantages of foreigners Establishing a Company in Turkey

The process of establishing a company in Turkey by foreign investors provides many advantages and rights with the latest laws.

Foreign investors can obtain the following rights and advantages:

1. Nationalization or nationalization of foreign direct investments has been restricted.
2. Foreign investors have the right to freely transfer their profits and some external incomes out of the country.
3. Foreigners who want to establish a company in Turkey have the right to apply to national or international arbitration and other dispute resolution methods in case of possible legal disputes.
4. The companies to be established by foreigners are provided with the ease of work permit in terms of employment of foreign personnel.
5. When it comes to non-cash capital, the reports of international value institutions are taken as reference.
6. It has the right to open a liaison office and branch.
7. There are also some tax advantages.
8. The investor can apply for citizenship depending on the amount of investment and other conditions.

As stated, there are many commercial and legal regulations that provide advantages to foreign investors.

However, in order to benefit from these advantages, it is recommended that the legal infrastructure of the company be created very accurately, and therefore, it is recommended to seek legal assistance from an experienced lawyer.

If you need one, here is the link to the website of a lawyer we trust.

Website : cglegalhukuk.com