Foreigners can establish a company in Turkey after completing the necessary legal procedures. For this purpose, a law that regulates establishment of a company in Turkey by foreigners is available. The Foreign Direct Investors Law No. 4875 states the provisions regarding this process. Within the scope of this law; some assurances have also been provided to foreigners through certain provisions, including freedom of investment, encouragement of foreign investors and equal treatment.
How Long Does It Take for Foreigners to Establish a Company in Turkey?
It generally takes 2-7 days for foreigners to establish a company in Turkey. Factors such as the type of company, the preparation of the articles of association, the status of the notary and registration procedures, and in case it is required, the process of obtaining permission from the ministry, may cause this period to be extended or shortened.
Can Foreign Companies Open a Company in Turkey?
It is possible for foreign companies to open a company in Turkey, similar to the foreign persons.
Can foreigners open a company without actually coming to Turkey?
Yes. Foreign persons and companies can carry out all incorporation procedures by giving a power of attorney providing the necessary powers to a financial advisor or a lawyer.
Can foreigners establish a company without a work permit?
According to Republic of Turkey laws; foreign real or legal persons can establish a company in our country and become a shareholder of an investment to be established. Foreign nationals who are shareholders are not required to obtain a work permit provided that they do not actually take part in the enterprise.
Can bank accounts be opened on the name of the companies established by foreigners?
The biggest problem that can be experienced in company establishments with a foreign partner may be the issue of opening a bank account. Banks may cause problems when opening an account for foreign nationals who do not reside in Turkey or have not personally worked with their banks previously. In addition, restrictions may be placed on the citizens of some countries occasionally. This issue should be investigated before establishment.
Is getting a work permit an obligation?
In accordance with the Article 6 of Code No. 6735, it is forbidden for foreigners to work in Turkey without a work permit. Foreigners are required to obtain a work permit before starting a dependent or independent business in Turkey.
Is a work permit required for companies who have foreign partners?
Work permits are not required during the establishment of the company. However, in case the foreign founders are company director or member of the board of directors the obtainment of a work permit is obligatory in the sixth month following the establishment. If the director or the board of directors of the company are Turkish citizens (i.e., if the foreign person is only a partner), this foreign partner does not need to obtain a work permit.
What are the conditions for work permit?
- The company’s paid-in capital must be at least 100,000 TL, or its gross sales must be at least 800,000 TL, or the last year’s export amount must be at least 250,000 USD.
- In the company in which work permits are requested for foreign partners, it is obligatory to employ at least 5 (five) Turkish citizens for each foreign partner for whom a work permit is requested. In case the applicant is a foreign company partner; the employment of the five people is required, for the last six months of a one-year work permit.
- If it is necessary to obtain a work permit for more than one foreign national for the same company, 5 (five) Turkish citizen must be employed individually for each foreign national following the first foreign national who is granted the work permit. A work permit cannot be obtained without fulfilling these conditions.
Can a foreign person open a sole proprietorship in Turkey?
A foreign person can open a sole proprietorship in Turkey, however it is not possible for a foreign national to open a sole proprietorship without having a work permit. A residence permit alone is not sufficient, but a sole proprietorship can be established if the foreign person applies for a self-employment permit after being in Turkey with a residence permit for 5 years.
Can foreign persons establish companies in every sector?
Companies that will do business in the following areas must obtain pre-approval from the ministry before their establishment and the preparation of their articles of association:
- Insurance companies
- Joint stock companies established in the form of holdings
- Companies that operate exchange offices
- Financial leasing companies
- Factoring companies
- Consumer finance and card services companies
- Independent audit companies
- Surveillance companies
- Technology development region executive companies
- Companies that establish and operate the Free Trade Zone
- Asset management companies
- Companies engaged in general warehousing field
- Companies engaged in licensed warehousing of agricultural products
- Commodity exchange companies
Therefore, the company to be established by the foreign person must comply with the provisions of the law.
Do I need a local address for the company that I will establish in Turkey?
Yes, your company must have a registered address in Turkey.
Does the company need a local manager?
If the owner of the company will not obtain a work permit, the presence of a local manager is mandatory. However, this is not mandatory if the owner of the company has a legal work permit in Turkey or applies for a work permit within six months following the establishment.