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The Right way of Starting a Business in Turkey

By: Admin Super

Turkey has a thriving economy and is home to numerous opportunities for entrepreneurs looking to start their own business. With its strategic location, a large and growing consumer market, and a well-educated workforce, Turkey is an attractive destination for foreign investors. In this article, we will explore the process of starting a business in Turkey, including information on the legal requirements, taxes, and costs involved.

Legal Requirements

The first step in starting a business in Turkey is to determine the type of business entity that best suits your needs. The most common types of business entities in Turkey include limited liability companies, joint-stock companies, and sole proprietorships. Each type of business entity has different requirements and benefits, so it is important to understand the differences before making a decision.

Once you have decided on the type of business entity, you will need to register the company with the Turkish Trade Registry. This process involves submitting various legal documents and paying a fee, which varies depending on the type of business entity and the size of the company.

After registering the company, you will need to obtain the necessary licenses and permits to operate your business. This may include a tax identification number, a business license, and a certificate of occupancy, among others. The specific requirements will vary depending on the type of business you plan to start and the location of your business.

Taxes

In Turkey, companies are subject to various taxes, including corporate income tax, value-added tax (VAT), and social security contributions. The corporate income tax rate in Turkey is 20%, while the VAT rate is 18%. Additionally, businesses are required to make social security contributions for their employees, which typically amount to approximately 25% of the employee’s salary.

Costs

The costs involved in starting a business in Turkey can vary widely depending on the type of business, its size, and its location. However, some of the most common costs include:

Legal and regulatory fees: These include fees for registering the company, obtaining licenses and permits, and obtaining any necessary certifications.
Office space: This can include rent for an office or workspace, as well as utilities and other related expenses.
Equipment and supplies: This can include computer equipment, office furniture, and any supplies necessary for your business.
Marketing and advertising: This can include costs for creating a website, printing business cards, and advertising your business in local media.
Employee salaries: Depending on the size of your business, you may need to hire employees, which will include costs for salaries and benefits.

So how much would you spend while opening a business in Turkey? Well, we can give you a hint. Let’s take a look at an example of the costs of opening a Limited Liability Company. Note that the prices are approximate.

Legal and regulatory fees: TRY 1,000 to TRY 2,000
Office space: TRY 2,000 to TRY 5,000 per month
Equipment and supplies: TRY 10,000 to TRY 20,000

Conclusion

The main idea of this article is that starting a business in Turkey requires careful planning and consideration of various costs, including legal and administrative fees, commercial premises and equipment, marketing and advertising expenses, and taxes. The exact cost of incorporating will depend on the type of company, its size, and location, but it is crucial to budget for all necessary expenses to ensure the success of the venture. To minimize costs, it may be useful to seek the guidance of a professional advisor or business consultant who is familiar with the local regulations and requirements. With the right preparation and a thorough understanding of the costs involved, registering a company in Turkey can be a worthwhile and profitable venture.