Month: October 2019

In Turkey, anonymous and company types in the institutional structure as may be established as a limited company, sole proprietorship company in non-institutional structures, such as ordinary companies can be established. Although individual companies are advantageous because they are easy to set up, do not have capital, and have low accounting costs, limited and joint stock companies are preferred in practice. In the establishment, first of all, the title of the company, the center, who the manager / representative will be, the capital and shares should be determined. Subsequently, the notarized company documents (such as the articles of association) must be registered in the central registry system and the relevant documents must be submitted to the trade registry directorate. The documents held outside of Turkey received apostille commentary, it must be approved by the consulates or notaries. For non-Turkish company partners, a potential tax number must be obtained from the relevant tax authority. Apart from these, ¼ of the main capital of the company and the share of the competition institution must be invested in the bank. The Company will acquire legal personality after the registration by the trade registry directorate. Subsequently, transactions such as arranging signature circulars to the manager or representative, approval of the books, and obtaining tax plates will be carried out. It may also be necessary to obtain work permits for foreign partners. Foreign companies may operate in establishing branches and representative offices in Turkey. Branches, whose purpose and duration can be established with the parent company, do not have capital obligation in the establishment of the branches, but they are required to register with the Trade Registry Office just like the companies. If the bureau can be installed directly on to the market research and feasibility study in Turkey it is not allowed to engage in commercial activities, such as, for institutions must obtain permission from the Ministry of Economy. It should be noted that foreigners have the opportunity to operate through acquiring ready-made companies in order to avoid the establishment of the company and to operate as soon as possible, albeit at risk.

İnvesting in Turkey with the regulations introduced on January 12, 2017 foreign nationals may have the right to Turkish citizenship. Accordingly, the company has invested over a certain amount or create jobs in Turkey and Turkish citizenship to foreigners who were granted the right to keep the deposit. Foreign investors can acquire Turkish citizenship if they meet the following conditions. Capital investment of at least $ 500,000 US dollars, To purchase immovable property for at least $ 250,000 To create employment for at least 50 people, At least $ 500,000 million in deposits in US dollar amounts in banks operating in Turkey keep at least 3 years, Purchasing government debt instruments at least $ 5,000,000 for three years Foreign investors who meet any of these conditions may acquire Turkish citizenship upon the proposal of the relevant ministry and the decision of the Council of Ministers.

Corporation tax for limited liability and joint stock companies in Turkey is 22 %. In addition, individuals are obliged to pay income tax on the earnings they earn during the year. Personal income rate is between 15% -35%. Turkey, as well as foreign investors and their home countries party to the agreement to prevent double payment of taxes in Turkey is a country. This is the number of countries party to the agreement and to invest in Turkey is becoming increasingly easier. However, tax exemptions are offered to foreign investors by the government in various periods.

Foreign investors are anonymous in Turkey, and has the possibility of setting up limited liability company name. Unincorporated company as a non-institutional structure of individual companies because it enables easy installation and low cost Although a number of advantages, even if foreign investment in Turkey is the most preferred type of limited liability and joint stock companies. When establishing a company, the title, headquarters, manager and capital structure of the company should be determined. Subsequently, the notarized company documents must be recorded in the central registry system and applied to the trade registry directorate. In documents prepared outside Turkey it must be approved by a notary or consulate. In addition, a potential tax number should be obtained for non-Turkish company partners. However, foreign companies may open branch or liaison office in Turkey. These branches do not have any capital obligation at the establishment stage, but this branch also has to register with the trade registry directorate. Finally, it is worth noting that foreign investors prefer to take over ready-made companies in order not to engage in such business.

Foreign investors are existing shareholders agreements with various countries both their own country in order to avoid paying taxes to Turkey. For example, a French citizen who invest in Turkey, not only pays tribute to Turkey because of their activities in Turkey. France does not pay taxes due to these activities. Some of Turkey under the double taxation avoidance agreement negotiated where countries are: USA, Germany, Azerbaijan, China, France, South Korea, Georgia, Iran, Qatar, K.K.T.C., Malaysia, Pakistan, Russia, Singapore, Jordan.

Foreigners who invest directly can equally benefit from the opportunities provided to domestic investors. While direct investment company in Turkey to open branches or partners to be done in the form of an existing company. On the other hand, there is no incentive for foreign investors in indirect investments made by buying stocks or bonds. For this reason, and only long-term foreign direct investment in Turkey can benefit from the facilities offered by the state. However, the profits from the activities of foreign investors in Turkey, sales, liquidation and compensation, licensing, management, and similar agreements are provided for earnings can be freely transferred abroad. In addition to all these foreigners who want to invest in Turkey; tax reductions, investment allocation, insurance premiums and similar government incentives.

Rapidly growing young population, qualified labor force, due to its geographical and geopolitical position, Turkey is among the countries preferred by foreign investors. In 2003 enacted “Foreign Direct Investment Law” with the number of foreign investors and companies in Turkey has increased and continues to increase. With this law, the obstacles to foreign investors have been removed and many advantages have been provided to investors. Moreover, Turkish investors living abroad can benefit from these advantages. We therefore foreign investors and the advantages of investing in Turkey for Turkish citizens living abroad have compiled for you.

Turkey’s Foreign Direct Investment (FDI) Law is based on the principle of equal treatment makes it possible to have the same rights and obligations as local investors and international investors.

The conditions for establishing and transferring shares are the same as those applied to local investors. Accordingly, international investors can establish all types of companies specified in the Turkish Commercial Code (TCC). TCC; It meets international standards, encourages private equity and IPO activities, providing transparency in government operations and business environment which makes Turkey’s compliance with EU legislation and EU accession process offers an approach to corporate governance.

Turkey has been based on the ease of doing business with reforms to improve the investment climate and thus removed realized bureaucracy experienced in company establishment procedures and costs are minimized. In this respect, the company’s organizations are now realized only in the Trade Registry Directorates operating in the Chambers of Commerce and designed as a “one stop office ve and can be completed on the same day.