Limited or Joint Stock Company?
Since the most preferred types of companies are limited and joint stock companies, we will talk about these two types of companies. Both companies can be established with a minimum of one partner and the partners are limited to the capital they are committed to. The limited liability company can be established with a minimum capital of 10,000 Turkish Liras (TL) and a joint stock company with a capital of 50,000 TL. The initial capital of non-public joint stock companies that have accepted the registered capital system must be at least TL 100,000. In both types of companies, there is no hindrance for all or part of the partners to be foreign nationals.
Which type of company investors should prefer depends entirely on their expectations and current conditions. Our expert lawyers Katja Habermann and Buse Guide will be happy to assist you with which company has the most advantageous investment.
Capital companies in Turkey (limited liability, joint stock company) as of 2017, 20% of the corporate tax payers. At the same time, individuals are obliged to pay income tax on their earnings and income during the year. Personal income tax rates vary between 15% and 35%. Residence, any of the companies or individuals with legal or business center in Turkey are taxed on their income both in Turkey and abroad. Otherwise, it is only taxable earnings and revenues obtained in Turkey. In addition, the payment of value added tax, special consumption tax and stamp tax comes into question. As a rule, a 15% tax deduction is required from the profit in case the shareholders are distributed at the end of the year.
The company or persons may also benefit from tax incentives, exemptions or exceptions. Within the framework of double taxation agreements, it is aimed to prevent the taxation of investors in both countries.
Companies Start advantageous for Foreigners in Turkey
That experts be advantageous to establish a company in Turkey for foreigners, it says Turkey’s 80 countries signed the agreement on prevention of double taxation.
About the benefits of establishing foreign companies in Turkey; Turkey avoidance of double taxation with 80 countries signed the agreement. For foreigners it is advantageous to establish a company in Turkey.
Turkey was the preferred country for foreign investors, “Our country is located in a strategic position in the trade to be made to many of the world, a result of the activities of facilitating implementation in our country of foreign capital has led foreign investors preferred by coming into a country. Foreign entrepreneurs willing to invest in Turkey Direct Investment Law in fact can benefit equally from the rights granted to Turkish citizens. On the other hand, Turkey is still one of the most important centers of interest to entrepreneurs.
“Turkey has agreements with 80 countries to avoid double taxation”
Agreements have been signed with 80 countries to prevent double taxation. Accordingly, it is one of the important factors in choosing Turkey of foreign companies. In our country, as of 2017, Limited Liability Company and Joint Stock Company are 22 percent corporate tax payer. Turkey has signed an agreement on the prevention of double taxation with the aim of deducting one tax paid in any country from the tax payable in another country with 80 countries. In addition, Social Security Agreements were signed with 26 countries. Thanks to the Customs Union Agreement, which has been in force since 1996, trade with EU countries is possible without any customs restrictions ”.
Permission required from the Ministry of Economy ”
Foreign firms should obtain permission from the Ministry of Economy fetching wish to open an office in Turkey, “the foreign companies wishing to open a liaison office in our country must get permission from the Ministry of Economy. The first permit is granted for 3 years and can be extended after this period. ”
“5 different companies can be established”
Mostly Joint Stock Company or Limited Company is preferred.
In the Turkish Commercial Code, 5 different trading companies are defined as Limited Company, Collective Company, Limited Partnership Company, Joint Stock Company and Cooperative. These two companies can be established with at least one partner and the partners are limited to the capital they are committed to. The limited liability company can be established with a capital of at least 10 thousand TL and a joint stock company with a capital of 50 thousand TL. Non-public joint stock companies that have accepted the registered capital system must have a starting capital of at least TL 100 thousand. In both types of companies, there is no hindrance for all or part of the partners to be foreign nationals. ”