FAQ (Frequently Asked Questions)

  • Shareholders do not have to come to Turkey to incorporate a company in Turkey as a first step. Only on confirmation step is needed.
  • Joint stock companies can be established with a single shareholder, up to 500 shareholders.
  • The minimum capital amount in joint stock companies is 50.000 TL.
  • At least 1/4 of the monetary values of the shares committed in cash must be paid before the registration and the rest within 24 months following the registration of the company.
  • The minimum capital amount is 100.000 TL in joint stock companies to get work permit for foreigners.
  • Capital can be guaranteed by cash or real estate during the establishment.
  • The transfer of shares is not required to have approved from a notary and also does not have to be registered in the trade registry. (Easy transferable)
  • The corporation tax rate in joint stock companies is 22%. In joint stock companies, if shareholders sell their shares after two years, there is no income tax on the sale of shares.
  • If your capital is over 250.000 TL, you must assign a lawyer for the company.
  • The articles of incorporation agreement must be prepared in writing and the signatures of all shareholders should be approved by notary public within 15 days, or the articles of incorporation agreement must be signed in the presence of the commercial registry manager or assistant. The articles of incorporation agreement should include specific standards according to Turkish Tax legislation.
  • You must have an official rent agreement with the landlord, registered in the official address. It might be also virtual address.
  • Power of Attorney (POA) for financial advisor or registered lawyer.
  • Shareholders may be on payroll on their own companies if they do not stand on the board of directors.
  • For the registration of tax and social security office, it is necessary to submit of the application form to the trade registry office.
  • Listing showing that business and official name is already registered, must be published in Turkey Trade Registry Gazette.
  • To register to the chamber of commerce or the chamber of commerce and industry, which is authorized in the region where the business operates.
  • The minimum capital amount in LLC is 10.000 TL.
  • Companies with limited profit expectations may prefer limited companies.
  • LLC companies can be established with a single shareholder, up to 50 shareholders.
  • Power of Attorney (POA) for financial advisor or registered lawyer.
  • You must have an official rent agreement with the landlord, registered in the official address. It might be also virtual address.
  • At least 1/4 of the monetary values of the shares committed in cash must be paid before the registration and the rest within 24 months following the registration of the company.
  • In LLC companies, income tax is to be calculated over the income obtained from the share transfer.
  • The transfer of shares is required to have approved from a notary and has to be registered in the trade registry.
  • You may assign the General Manager from outside the shareholders, but at least 1 person from the shareholders must also be a manager.
  • The shareholders are responsible for the tax and public liabilities in proportion as the capital they undertake.
  • Listing showing that business and official name is already registered, must be published in Turkey Trade Registry Gazette.
  • To register to the chamber of commerce or the chamber of commerce and industry, which is authorized in the region where the business operates.
  • For the registration of tax and social security office, it is necessary to submit of the application form to the trade registry office.
  • The articles of incorporation agreement must be prepared in writing and the signatures of all shareholders should be approved by notary public within 15 days.
  • The Articles of Association may be amended by the decision of the shareholders representing 2/3 of the capital if there is no provision contrary to incorporation agreement.
  • VAT monthly
  • If you have employees, monthly insurance liabilities (SSI)
  • Every month Employer insurance premium
  • Withholding (Payroll Tax) monthly or quarterly
  • Quarterly Corporate Income Tax
  • Annual Corporate Income Tax
  • Once in a year – approval payment for yearly legal books
  • Obligatory membership fees to the chambers
  • Stamp Tax – if you sign any agreement
  • If shareholders are the owner of an established company in Turkey, income tax over the profit is not calculated while natural person shareholders should pay 15% withholding tax after CIT deduction.
  • If a loss is reached after a financial year, profit distribution cannot be decided unless this loss is covered compared to the previous years.
  • By Joint Stock Companies, the Board of Directors shall call the members to the General Assembly within 3 months of the year closing to decide officially for the profit distribution.
  • By LLC companies that has less than 20 shareholders must have resolution of board of shareholders and by more than 20 shareholders, the general assembly has to decide on the profit distribution officially.
  • 5% general legal reserve is obligatory to be allocated from net profit every year; 5% of the remaining amount may be distributed as profit to shareholders.
  • After the company is established, authorized person is coming from the tax office to check whether the company exists. (Official inspection)
  • You can assign your home office as official company address. If the owner of the property is natural person then you should pay 20% withholding tax monthly.
  • You can have contract either with virtual office providers or you can contact us to provide you a temporary official address at our location. So, you will have no any 20% withholding tax deduction on the rent fees.
  • You may rent a furnished or unfurnished workplace in Turkey. Please also note that the inspector will come to approve soon that your workplace is rented in line with your business operations.
  • Company Stamp
  • Invoice Series officially printed out
  • Power of Attorney to CPA & Financial Advisor
  • A copy of the establishment documents obtained from tax office
  • Rental agreement
  • Stamp duty payment receipt of the rental agreement
  • Copy of the receipt of the notarized legal books
  • Your Online Tax Office credentials (username-password)
  • Tax Certificate provided from tax office
  • Documents provided from chamber of commerce
  • Social Security Account Number
  • Bank account book and internet banking codes
  • Approved Circular of Signature
  • Corporate name must be clearly determined.
  • Company shareholders and share amounts should be clearly determined, minimum 1 partner is sufficient for all capital types.
  • Company’s central address must be determined.
  • It should be determined who the company director or representative should be.
  • How to make announcements about the company should be determined.
  • The main points of operation area of the company should be specified and defined in detail.
  • Financial year of the company should be clearly written on any article of the incorporation.
  • The capital structure and payment schedule of the capital should be clearly defined.
  • The way of calling to general assembly meetings and voting rights
  • If it does not conflict with the provisions of the Commercial Law, additional new articles may be added to the incorporation.
  • The members of the Board of Directors may be paid under definition of salary, bonus, premium and annual profit share which is determined by the articles of incorporation or the general assembly decision.
  • The attendance fee payments to shareholders are subject to income tax and social insurances and must be shown on the company’s payroll.
  • The attendance salary should be fair according to the wages paid in the company, otherwise if investigated, the application might be charged from the tax office.
  • General Manager of the company can be included on the payroll of the company if needed. Minimum salary limitation should be considered when calculating monthly salary to the shareholders.
  • Withdraw any salary or equivalent cash outs should be documented, otherwise without any documentation or payroll transactions, the cash out will be considered as covered profit distribution and will be subject to income tax in any case.
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