Blog: Required documents, terms and cost of opening a company in Turkey.
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Required documents, terms and cost of opening a company in Turkey.

29.11.2023

In order to open a company in Turkey and obtain a residence permit (TPL), foreigners need to meet the following requirements:

1. Company Registration:

  • Selecting the appropriate type of company (e.g. limited liability company or joint stock company).
  • Preparation of constituent documents and articles of association of the company.
  • Registration of the company with the relevant state authorities.
  • Determination of the legal address of the company in Turkey.
  • Contribution of authorized capital (the amount depends on the type of company).

2. Obtaining a work permit:

  • Applying for a work permit after company registration.
  • Prepare and submit required documents including company documents, bank statements and financial statements.

3. Financial sustainability:

  • Demonstrating the company's financial strength and ability to sustain operations.
  • Preparation of the company's business plan and financial model.

4. Filing an application for residence permit:

  • Applying for a residence permit after obtaining a work permit.
  • Providing documents confirming the legality of the business and the existence of a work permit.

5. Health Insurance:

  • Medical insurance covering the whole period of stay in Turkey.

6. Compliance with local legislation:

  • Compliance with all local legal requirements, including tax obligations and labor laws.

7. Waiting for a decision:

  • Waiting for a decision on the residence permit application, which can take from several weeks to several months.

The following incorporation documents are required to open a company in Turkey:

  • Articles of Association: the main document that contains information about the name of the company, its goals and objectives, management structure, founders, amount of authorized capital, rights and obligations of shareholders.
  • Minutes of the general meeting of the founders: a document containing the decisions of the first general meeting of the founders, including the appointment of directors and auditors of the company.
  • Notarized documents: some documents, such as the articles of incorporation, may require notarization.
  • Criminal record certificate: for foreign founders and directors, a criminal record certificate from their country of citizenship or permanent residence is required.
  • Declaration of Acceptance: documents confirming the consent of directors and board members to hold office.
  • Subscription Documents: If the company is a joint stock company, the founders must sign subscription documents for the company's shares.
  • Proof of payment of share capital: proof of payment of share capital, usually in the form of a bank statement.
  • Receipts for the deposit of 0.04% of the company's share capital into the account of the Turkish Competition Authority.
  • Certificate of Registration with the Commercial Registry (Ticaret Sicili Gazetesi): a document issued by the Commercial Registry after the registration of a company.
  • Company Tax Number (Vergi Numarası): it is necessary to obtain a tax number from the tax office.
  • Identity documents of the founders: copies of the passports of the founders and/or their personal data.
  • Agreement on lease or purchase of real estate/premises: documents confirming the legal address of the company.
  • Powers of attorney: if the founders or directors are acting through representatives, appropriate powers of attorney are required.

To apply for a work permit in Turkey on the basis of opening a company, foreign nationals usually need to provide the following documents:

  1. The application for a work permit is usually a standard form to be filled out and submitted to the Turkish Ministry of Labor and Social Protection or through electronic government services.
  2. Company incorporation documents - Copies of company registration documents in Turkey, including the memorandum of association, certificate of incorporation and company statute.
  3. Documents confirming the contribution of the authorized capital - These may be bank documents or financial statements confirming the contribution of the company's authorized capital.
  4. Passport - A copy of the applicant's passport.
  5. Photographs - Standard Biometric Photographs.
  6. Health Insurance - Proof of health insurance covering the period of intended stay in Turkey.
  7. Business Plan - A document describing a company's operations, goals and development strategies.
  8. Financial Evidence - Bank statements or other financial documents may be required to prove the company's ability to maintain its operations and pay employee salaries.
  9. Lease agreement or property certificate - Proof of the company's registered office in Turkey.
  10. Criminal record certificate - From the country of permanent residence or from Turkey if the applicant has already resided in the country.

The following criteria are usually required to demonstrate financial stability when a foreigner opens a company in Turkey:

  1. Authorized capital: Foreigners starting a company in Turkey are required to contribute an authorized capital, the amount of which depends on the type of company. For example, for a limited liability company (Ltd. Şti.) the minimum authorized capital is 10,000 Turkish Liras (TRY) and for a joint stock company (A.Ş.) it is 50,000 TRY.
  2. Bank Account: Opening a bank account in a Turkish bank and depositing the authorized capital in this account.
  3. Financial statements: Provide financial statements proving that there are sufficient funds to support the company's operations, including possible operating expenses, office rent, employee salaries and other necessary expenses.
  4. Business Plan: Develop and present a detailed business plan describing the company's operations, goals, market strategies, and projected revenues and expenses.
  5. Proof of investment: Proof of investment such as purchase of equipment, lease or purchase of premises for office or manufacturing purposes.
  6. Tax Compliance: It is necessary to ensure that the company will comply with all tax obligations in Turkey, including filing tax returns and paying taxes.
  7. Credit history: A good credit history in the country of origin can be helpful in proving financial strength.
  8. Other evidence of financial strength: Additional documents such as bank guarantees or statements of assets and liabilities may be required.

The process of company organization in Turkey and its timing can be divided into the following stages:

1. Preparation of a package of documents:

  • Time: 3-5 days.
  • Includes preparation of a package of necessary documents.

2. Business Registration:

  • Time: about an hour.
  • The actual registration of the business in the commercial register.

3. Preparation of documents for Joint Stock Companies:

  • Time: 10-20 days.
  • Depends on the number of founders and partners.

4. Verification by the commercial registry and the tax office:

  • Time: 4-10 days.
  • Verification of the data provided at the time of company registration.

5. Obtaining additional authorization from the Ministry of Commerce (if necessary):

  • Additional time: 1-3 days.
  • Necessary for companies whose activities require a special license.

6. Publication of information about the company:

  • After all registration procedures are completed, the Trade Register Directorate publishes information about the new company in the official Gazette.

7. The total period of establishment of the company:

  • On average, between 7 and 33 days, depending on various factors, including the type of company and the need for additional authorizations.

These timelines are indicative and may vary depending on the specific circumstances and the performance of government agencies.

The cost of starting a business in Turkey for a foreigner in 2023 depends on several factors, including the type of company, the chosen sector, the size of the business, and various administrative and legal costs. Here are the main components of the cost:

1. Authorized capital:

  • Limited Liability Company (Ltd. Şti.): Minimum 10,000 Turkish Liras (TRY).
  • Joint Stock Company (A.Ş.): From 50,000 TRY (private/closed) to 100,000 TRY (public/open).

2. Registration Fees:

The registration fee is free of charge

  • Service fee - 150 TRY
  • Certification of the General Ledger (accounting document received after company registration) - 300 TRY
  • Deposit to the account of the Antimonopoly Service - from 4 TRY (20 TRY for CJSC, 40 TRY for OJSC)
  • Fee for registration in the Commercial Register - 505 TRY
  • Fee for publication of the notice of registration in the Commercial Register Gazette - 245 TRY

3. legal and consulting services:

  • The cost may vary, but tentatively from TRY 5,000 to TRY 15,000 or higher, depending on the complexity of the business and the level of services.

4. Notary services and translations:

  • Approximately 1,000 to 3,000 TRY, depending on the volume and complexity of the documentation.

5. Opening a bank account:

  • Usually small fees or free; depends on the bank.

6. Office Rental:

  • Depends on location and size; in larger cities, costs can start at a few thousand TRY per month.

7. Additional costs (licenses, equipment, etc.):

  • Vary greatly depending on the industry and size of the business.

8. Fixed operating expenses:

  • Includes salaries, utilities, taxes, etc., and can range from a few thousand to tens of thousands of TRY per month.