Foreign Investment in Turkey at a First Glance
Embarking on foreign investment endeavors in Turkey unveils a mosaic of potential, but the intricate legal landscape demands meticulous navigation. This guide delves into the core aspects of establishing a company in Turkey as a foreign investor. Whether you're considering a Limited Liability Company (LLC), Joint Stock Company (JSC), Branch Office, or Liaison Office, the journey involves critical steps from name reservation and document preparation to compliance with tax regulations. In this detailed exploration, we unravel the complexities and emphasize the pivotal role of a seasoned lawyer, choosing the business structure to ongoing legal support, each phase is illuminated to empower investors with the knowledge necessary for success for the procedures of foreign investment in Turkey.
Let’s begin with the basic questions and specific answers to them within the scope of foreign investment in Turkey.
How to Register A Company In Turkey by a Foreign Investor?
Investing in Turkey as a foreigner involves navigating legal intricacies, and registering a company is a fundamental step. In order to register a company in Turkey as a foreigner investor you should follow some of the main steps:
Choose the type of company you want to establish, such as a limited liability company (LLC) or a joint stock company (JSC).
Reserve the name of the company and prepare the articles of association (AoA).
Open a bank account and deposit the minimum capital required by law.
Submit the necessary documents to the Trade Registry Office and obtain the tax identification number and commercial registration certificate.
Register with the Chamber of Commerce and apply for any necessary licenses and permits.
Comply with the tax, accounting, and financial reporting regulations.
You may also need to obtain a work permit or a residence visa, depending on your nationality and the nature of your business. We advise you to seek professional assistance from a lawyer who is familiar with the Turkish laws and procedures, like Atlas Legal Partners. Our skilled lawyers specialize in foreign investment nuances, guiding you through the intricacies of legal procedures. Before you make any financial commitments, consult with us to ensure that every legal step is taken diligently, safeguarding your investments and paving the way for a successful venture. Trust us to be your legal partners on the path to investment success in Turkey.
Consult with us to ensure that every legal step is taken diligently, safeguarding your investments and paving the way for a successful venture. Trust us to be your legal partners on the path to success for foreign investment in Turkey.
How to Establish a Company with a Lawyer in Turkey?
Setting up a business in Turkey can be an exciting opportunity, but navigating the legal and administrative processes can be complex. To ensure a smooth and compliant establishment, partnering with a qualified lawyer and law office is crucial before taking actions for a foreign investment in Turkey. Below is a general overview of the process:
1. Choose your business structure:
Limited Liability Company (“Limited Şirket” in Turkish): Most common, requires at least one shareholder and one director, minimum share capital of 50,000 TRY./ 1.711$
Joint Stock Company (Anonim Şirket in Turkish): More complex, suitable for larger businesses, requires a minimum share capital of 50,000 TRY./ around 8.558$ (exchange rates are subject to change)
Branch Office: Represents a foreign company in Turkey, subject to specific regulations.
Liaison Office: Conducts market research and promotional activities, limited revenue generation.
2. Find a lawyer and law office:
Look for firms specializing in company formation and foreign investment in Turkey.
Ask for recommendations from other businesses or professional organizations.
Choose and Contact Atlas Legal Partners as your expertise lawyer office.
3. Gather necessary documents:
Passports or identification documents for shareholders and directors.
Proof of address for the company.
Business plan and articles of association.
Tax identification numbers for shareholders and directors (if applicable).
4. Complete the registration process:
Your lawyer will guide you through the online registration system at the Trade Registry Office.
Pay registration fees and obtain a tax identification number for the company.
Register for social security and open a corporate bank account (if applicable).
5. Ongoing legal support:
Your lawyer can assist with obtaining licenses and permits, complying with regulations, and handling legal matters as your business grows.
Additional tips:
Start planning early and allow sufficient time for the establishment process.
Communicate clearly with your lawyer and provide all necessary information promptly.
Be prepared for potential costs associated with legal fees, registration fees, and other expenses.
Consulting with a qualified lawyer of Atlas Legal Partners is essential to ensure a smooth and compliant company establishment in Turkey, because the specific requirements and procedures may vary depending on your chosen business structure and location.
Also, below we provide a more the detailed list of required documents while establishing and opening a company in Turkey:
A title of company and Articles of Association (AoA)
Personal information and passport copies of the shareholders and directors
Proof of address for the shareholders and directors
Proof of the capital amount, its source and existence
Tax Identification Numbers (TIN) for the shareholders and directors
A Registration and Commercial Activity Certificate
What are the Benefits of Having a Lawyer in Turkey During Foreign Investment Processes?
Investing in Turkey as a foreigner involves navigating legal intricacies, and registering a company is a fundamental step. It may cause some unexpected problems even for native Turkish citizens, and the processes may consume longer time & effort than one may dedicate. Therefore engaging a lawyer in Turkey offers numerous advantages, such as:
Smooth Transactions: Ensure professional and smooth transactions with an experienced legal professional.
Representation: Protect your interests and rights with representation before Turkish authorities and courts.
Risk Avoidance: Mitigate legal risks and navigate complex Turkish laws and regulations effectively.
Professional Solidarity: Benefit from the confidentiality obligation and code of ethics adhered to by lawyers.
As you contemplate investing in the dynamic Turkish market, remember that smart investments begin with a solid legal foundation. Atlas Legal Partners provides the expertise you need to navigate complex procedures for foreign investment in Turkey. Engage with our lawyers to ensure that every legal step is taken with precision, safeguarding your interests and investments. Before you invest, invest your trust in legal excellence.
Foreign Investment in Turkey without Visiting The Country
It’s possible to take action for foreign investment in Turkey without visiting it, however, the opportunities depend on the type of investment you want to make.
First of all, if you want to invest in the Turkish stock market, you can do so online through a broker or a bank that offers access to the Istanbul Stock Exchange. Depending on your desire to invest in a Turkish bank account, you can open one remotely through a Turkish bank that has branches or representatives in your country, or through an international bank that operates in Turkey.
On the other hand, real estate investment is another procedure. If you plan to invest in Turkish real estate, you can buy a property without visiting Turkey, but you will need to appoint a power of attorney to a lawyer or an agent who can handle the legal procedures on your behalf. You will also need to obtain a tax identification number and a bank account in Turkey, which can be done online or through a representative.
You can secure your investment future by partnering with Atlas Legal Partners. Our lawyers specialize in foreign investment procedures, ensuring that you take the necessary legal steps to safeguard your ventures. Before you embark on this exciting journey, let us be your legal guide, providing the expertise needed for a secure and prosperous investment experience.
Time Schedules & General Costs to Register a Company in Turkey
The process of registering a company in Turkey typically takes around 2-4 weeks, depending on the company type and the efficiency of the local authorities. However, the procedures may be accelerated to be done in 2-3 business days after the receipt of the documents.
On the other hand, the cost of registering a company in Turkey depends on the type of company, the number of partners, the volume of business, and whether you speak Turkish or not. According to the latest news, the average and minimum cost of registering a limited liability company (LLC) in Turkey has risen to 50,000 TRY./ 1.711$ in 2023. However, this cost may vary slightly depending on the local fees and taxes. You may also need to pay for a sworn translator, a notary, and a lawyer if you are not familiar with the Turkish language and laws. After all, Turkey is a promising market for entrepreneurs, with a large and young population, a strategic location, a dynamic economy, and various incentives from the government. However, there are also some difficulties that you may face, such as bureaucracy, taxation, competition, and legal uncertainties. Therefore, we recommend contacting experienced lawyers for more details on the general costs or the budget you may require.
To sum up, it’s clear that foreign investment in Turkey offers a world of opportunities, but it's vital to tread carefully through the legal intricacies. Atlas Legal Partners stands as your gateway to confidence. Before you commit to investments, consult with our adept lawyers who specialize in foreign investment procedures. We ensure that every legal step is meticulously taken, safeguarding your interests and offering you the assurance needed for successful ventures.
In future blog posts, we’ll delve into more details on the most profitable sectors in Turkey for investments, as well as some major challenges of investing in Turkey and how to overcome them. Stay tuned for more!
