Ready To Buy Company in Turkey

which it is ready to establish a company in Turkey and does not want to lose time with the company registration process foreign entrepreneurs prefer to buy a ready-made company. Ready to buy a company, but there is an alternative option for foreign investors in many countries, laws in Turkey is slightly different. For a company to exist, it must have an economic activity. Therefore, the company, which has been inactive for years, loses its character.
 
Ready-made companies are generally preferred by investors who are in a hurry to start their business and need a strong firm in the market. According to Turkish Companies Act, a company director, company, and then edit the articles of association must come to Turkey to prove that the company is commercially active in the local tax office.
 
In recent years, many foreign investors are interested in the company because of the positive economic environment in Turkey. Some prefer to buy a ready-made company, which means they will have to go through a share transfer procedure for a previously registered firm.
 
Ready-made company acquisition procedure
This procedure is easier and takes less than the start of a new company. A legal person or a natural person may purchase a ready-made company by presenting the registration license of the company that will buy the Turkish company or the passport of the person who has signed the acceptance agreement before the notary public.
 
New shareholders may make changes after taking over the company upon notice from the Trade Registry Turkey. The new board of directors, company management and address will also be registered in the Trade Registry. The new shareholder may make changes to the bank representatives or other activities of the company.
 
Before purchasing the ready-made company, a thorough investigation of the company’s history, debts and past legal obligations should be carried out.
 
The main advantage of acquiring a ready-made company is that it can be used to sign an important contract or close an urgent agreement. You can change the name of the ready company.
 
Companies located in Turkey are ready, you can conduct business with a registered address and KDV since they have the numbers for the purchase of the first day. This advantage prevents investors from spending too much time in tax authorities. It is also suitable for people who want to be involved in the deep-rooted history of a foreign company and thus aim to develop relationships with business partners and customers and attract other customers or potential partners.
 
Buy ready-making procedures of the company at any point if you need help or if you want to establish a company in Turkey, you will be able to offer more information you can contact us and processes to ensure the passage easier.

Branches of Foreign Companies in Turkey Opening Process

According to the Turkish Commercial Code, it is mandatory that each establishment has a center. The headquarters of the business enterprise refers to the place where the business’s administrative, legal and commercial activities are collected and carried out. This location may be different from where the technical activities of the entity are carried out.

As the scope of their activities increases, commercial enterprises operating in Turkey and abroad prefer to manage their business through the semi-independent units they will establish, ie branches, instead of managing them centrally. Branches are as follows;

• Branch and headquarters must belong to the same real or legal person.

• Field of activity similarity: The field of activity of the branch and headquarters should be similar or the same.

• Headquarters and branches should be in separate places. As a rule, the branch should operate in a separate place from the center. However, the distance limit does not matter. For example, while the upper floor of a building is the headquarters of the company, the lower floor can also function as a branch.

• The branch has to use the trade name of the center by adding a branch attachment.

• Branches must be registered and announced in the trade registry of their location.

• Branches must register to the chamber of commerce and industry of their location separately from the center and pay dues.

• Branches are connected to the center. The profit, loss, rights and debts provided by the Branch are deemed to belong to the center. The branch does not have any assets apart from the center, only a certain asset is allocated to the branch by the center. Therefore, branches cannot be considered as an independent commercial enterprise.

In accordance with the loyalty relationship, the branches may operate only in matters that fall within the field of activity of the center based on the authority they have received from the center.

Branches are also attached to the center in terms of operational policy. The business policy is the personnel, price, management, etc. that an enterprise follows during the activity. refers to policies. In accordance with the loyalty relationship, the branches must comply with this operating policy determined by the center.

The organization of the branches is subject to the center. For example, the recruitment or promotion of the branch personnel is done from the center. However, if the branch has been authorized by the center in this regard, it will be able to use this authority.

• Separation of management: Since it is authorized to conduct branch transactions alone, it must have a separate accounting from the headquarters. Therefore, it is necessary to keep the commercial books separate from the center. However, it is considered possible that the records related to the branch can be passed by the center provided that a separate book is kept.

• Branches are independent in external relations: The Branch is authorized to carry out all transactions that the head office is authorized to perform with third parties. The independence of the branch in external relations is limited by the authority given to it by the center. If the branch exceeds the authority limit given by the center, the center shall be responsible to third parties against the transactions performed by the branch.

In the light of these features, it is seen that the branch has absolute independence in the external relationship, whereas in the internal relationship it is seen that there is a complete commitment to the center.

a duly authorized attorney in the first place of residence in Turkey to open a branch in Turkey foreign companies are required to appoint. After this proxy is appointed, all necessary documents and the Ministry of Industry and Trade, General Directorate of Internal Trade should be applied.

documents to be submitted to the Ministry of Industry and Trade of the foreign companies to open branches in Turkey include:

1. Petition written by the company or its representative. This petition; company name, company history, company nationality, capital of the company, the name of a duly authorized proxy surname in Turkey, attorney’s commitment to comply with the laws and legislation in the transactions to be made within the borders of Turkey, branch address, branch of activity and branch capital information is required the presence of.

2. Original and translation of the decision to open branches of the authorized bodies of the company (establishment notification form)

3. Original and translation of the Articles of Association

4. Establishment documents showing where, when and under which state laws the company was established and the activity certificate of the company that is still operating. These documents are required to be translated as well as the originals.

5. Translation of the original power of attorney and proxy of Turkey. This power of attorney should include the following issues in addition to the issues needed;

– Performing the transactions indicated in the articles of association and representing the company,

– To represent the company in all courts as plaintiff, defendant and third party in cases arising from transactions on behalf of the Company,

To appoint an attorney instead of the powers which it has in the case of temporary separation for in Turkey

OlmaTo be authorized to assign proxy to the secondary branches to be established under the central branch.

Translations of documents required to be translated in the list shall be certified in one of the following ways;

– By the Turkish consulate in the country to which the Company is subject,

– Turkey by the Ministry of Foreign Affairs

– According to the provisions of the “Convention on the Elimination of the Obligation of Approval of Foreign Official Documents çevresinde prepared around the Hague Conference on Private Law.

After obtaining the permission to open a branch from the Ministry of Industry and Trade, it is necessary to apply to the Trade Registry Office with the following documents and to register the branch:

1. Permission of the Ministry of Industry and Trade,

2. The petition signed by the company official,

3. Notarized power of attorney,

4. Auction declaration and announcement approved by the Ministry of Industry and Trade,

5. Trade room registration form,

6. Signature circular of the branch representative,

7. Commitment in accordance with Article 29 of the Company’s registration regulation,

8. If the representative of the branch is Turkish, a notarized identification card and if a foreigner, a notarized passport copy.

Investment Incentives

The new investment incentive system has been designed specifically to encourage investments that have the potential to reduce import dependence on intermediate goods that are important for the country’s strategic sectors.
 
 
The main objectives of the new investment incentive system are to reduce the current deficit, to expand the investment supports provided to less developed regions, to increase the amount of support elements, to encourage clustering activities, and to support investments that will transform technology.
 
 
 
As of January 1, 2012, the new investment incentive system consists of four separate regimes. Domestic and foreign investors can benefit from the following incentives equally:
 
 
 
1- General Investment Incentive Applications
 
2- Regional Investment Incentive Practices
 
3- Large Scale Investment Incentive Applications
 
4- Strategic Investment Incentive Applications

Tax System in Turkey

 

Direct and Indirect Taxes in Turkey
Turkey, with the aim of public services to meet the people of the state and the institutions, which have collected way we mean by law as the definition of tax money. In the Turkish Tax System, taxes are classified under two main headings as indirect taxes and direct taxes. Basically, taxes on income and wealth are called direct taxes, and taxes on expenditures are called indirect taxes.

   
Income tax
Revenues and income are as follows:

1. Commercial earnings
2. Agricultural earnings
3. Fees
4. Profession earnings
5. Real estate capital income
6. Securities income
7. Other earnings and revenues

   
Full Liability
Below listed natural persons in Turkey and are taxed on all income and gains they have achieved the outside:

1. Those settled in Turkey
2. (202 of Law No. I varying with Article 1) is connected to official departments and institutions or headquarters entities and enterprises in Turkey said circle, institutions, entities and enterprises of the residents in foreign countries with their work on due to Turkish citizens (of these, such as in the country they are located Those who have been subject to Income Tax or similar tax due to their earnings and revenues are not taxed separately on the mentioned earnings and revenues.)

Below listed are considered one settled in Turkey:

1. Residential, located in Turkey (Residential, which are written in place of the 19th and subsequent articles of the Civil Code)
2. (Law No. 202 paragraph by changing Article 2) more than six months in Turkey is constantly sitting in a calendar year (Temporary separations does not interrupt the residence time in Turkey.)

even if they’re in the country more than six months following written foreigners, settled in Turkey not include:

1. Certain tasks and temporary work or coming to Turkey for work, scholars and scientists, experts, officials, media and press correspondents and situations from the other person charged with or similar to their treatment or rest or travel purposes
2. Arrest, detention in Turkey has not achieved for reasons such as illness or conviction or those who have stayed

   
Corporation tax
Subject of Tax:

The earnings of the following institutions are subject to corporate tax:

a) Capital companies
b) Cooperatives
c) Economic public institutions
ç) Economic enterprises belonging to associations or foundations
d) Business partnerships
The income of the corporation consists of the income elements that are subject to income tax.

   
liability
Capital companies:

Established in accordance with the provisions of the Turkish Commercial Code no. In the implementation of this Law, funds subject to the regulation and supervision of the Capital Markets Board and foreign funds similar to these funds shall be considered as capital companies.

Cooperatives:

Refers to cooperatives established in accordance with the Law on Cooperatives dated 11/24/1969 and numbered 1163 or special laws and foreign cooperatives of similar quality.

Public economic institutions:

Commercial, industrial and agricultural enterprises, which are owned or affiliated to the state, special provincial administrations, municipalities, other public administrations and institutions and whose activities are continuous and other than the first and second paragraphs, are economic public institutions.
Commercial, industrial and agricultural enterprises, which are owned or affiliated to foreign states, foreign public administrations and organizations and which fall outside the first and second paragraphs of this article, are considered as economic public institutions.

Economic enterprises of associations or foundations:

Commercial, industrial and agricultural enterprises belonging to or affiliated with associations or foundations, whose activities are continuous and other than the first and second paragraphs of this article, and similar foreign enterprises are the economic enterprises of associations or foundations. In the implementation of this Law, trade unions; congregations are considered foundations. The fact that the economic enterprises belonging to economic public institutions and associations or foundations are not aimed for earnings, their activities are among the duties assigned by law, the absence of legal entities, the absence of independent accounts and their own capital or workplaces shall not affect their obligations. The fact that the cost of goods or services is only sufficient to cover the cost, not making a profit or allocating the profit for the purposes of establishment does not change their economic quality.

Business partnerships:

It is the business partnerships that the corporations written in the above paragraphs, among themselves or with individual persons or with real persons, demand that such partnerships be established in order to undertake the joint work of a certain business jointly and to share their earnings. Their lack of legal personality does not affect their obligations.

Full and Narrow Liability
Full liability:

Law of the few institutions in the legal or business center located in Turkey Article 1, both are taxed on all income derived outside of Turkey and Turkey.

Narrow liability:

both the legal and business centers of the few institutions in Article 1 of the Law are not in Turkey, they are taxed only on the income that you obtained in Turkey. In narrow liability, corporate income consists of the following earnings and revenues:

a) 04/01/1961 213 dated Tax Law according to which work in Turkey or permanent representative possession of these places by foreign institutions or commercial profits derived from the work done by these representatives (These conditions cause any are to be exported, even institutions they take goods purchased in Turkey, earnings arising from referring to without selling the foreign countries in Turkey, does not count obtained in Turkey. in order to sell in Turkey, the buyer or seller or both, or if the contract of sale in Turkey are made in Turkey.)
b) gains derived from agricultural businesses in Turkey
c) the self-employment income obtained in Turkey
d) The rights to movable and immovable are foreclosed obtained letting in Turkey
d) The capital gains obtained in Turkey
e) Other income and revenues obtained in Turkey

Obtaining in Turkey of this article shall be dealt with as income or gain possession of the subject and permanent representative in Turkey, No. 193, dated 31/12/1960 and the relevant provisions of the Income Tax Act applies.

Legal center:

It is the center shown in the presidential decrees, statutes, main statutes or conventions in the establishment laws of taxable institutions (Article added to article 173 of Decree Law No. 700; Effective: 09.07.2018).

Business center:

It is the center where transactions are de facto collected and managed in terms of business.

Establishment and Work Permit

When establishing a company with foreign partners, you must apply for a work permit for foreign partners and foreign managers of the company. The company must meet the following conditions in order to obtain a work permit.

According to the new law, joint stock companies and limited liability companies not domiciled in Turkey and their foreign partners eliminates the requirement of a work permit if there is no authority in these companies.

Foreigners may establish a company in Turkey, or over 100% shareholder can or not less than 40% (for a work permit), can any company’s partner.

The Company’s paid-in capital must be at least 100,000 TL or its gross sales amount should be at least 800,000 TL or the export amount of the last year must be at least 250,000 USD.

At least 5 (five) Turkish nationals must be employed for each foreign partner in the company requesting work permit. For foreign company partners requesting a work permit, it is required that there will be five Turkish employees in the last six months of the 1st year of the work permit. If more than one foreigner is required to work in the same company, 5 (five) Turkish Citizens must be employed for each foreigner after the first foreign employee who has obtained the work permit.

Work permits are not required for foreign partners during the establishment of the company and can be applied later.

Which Types of Companies Can Be Established?

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.

Can Foreign Investors Receive Turkish Citizenship?

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.

What is Taxation for Foreign Investors?

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.

What kind of companies can foreign investors establish?

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.

Special Tax Regulations Available in Turkey?

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.