Business entities in Turkey

Business entities in Turkey

Healy Consultants will assist our Client engineer the optimum Turkey corporate structure. There are several ways of doing business in Turkey, the most common being formation of a limited liability company (LLC).

Limited liability company

    Turkey business setup procedures and legal requirements
  • A Turkey limited liability company (LLC) is the most common entity used to conduct business within Turkey and is allowed to engage in any commercial or industrial activity. A Turkey LLC must appoint a minimum of one director and one shareholder. A Turkey resident secretary is not required;
  • A Turkey LLC is relatively straightforward to incorporate, with the entire process taking less than a week and not requiring the entrepreneur to travel to Turkey to complete incorporation;
  • An LLC can be also incorporated for the purpose of investment in Turkish free zones. Such a company will enjoy complete exemption from corporate tax, income tax, VAT, witholding tax and customs duties;
  • An LLC makes a good partner to a tax exempt holding company, with no taxes levied on dividends received from foreign subsidiaries. All dividends are tax free under the condition that they be held for a minimum of one year and that the parent company own at least 10% of the subsidiary;
  • A Turkey limited liability company (LLC) is the most common entity used to conduct business within Turkey and is allowed to engage in any commercial or industrial activity. A Turkey LLC must appoint a minimum of one director and one shareholder. A Turkey resident secretary is not required;
  • A limited liability company can be incorporated within one week, with a minimum of one shareholder and one director of any nationality. The minimum paid up share capital is €3,300 and our Client does not need to travel to complete the engagement.

Branch office

The Turkish Companies act regulates foreign company branches in Turkey and stipulates that they may be 100% foreign owned. A branch office in Turkey can conduct trade within the scope set by the parent company. A Turkey branch office is allowed to invoice Turkey customers, sign local sales contracts and receive income from customers. A Turkey branch company is also required to obtain the necessary licensing for its industry of business.

Representative office

Where a foreign company does not intend to carry on business in Turkey it may seek to establish a representative office. While a Turkey representative office is 100% foreign-owned and controlled, it is not permitted to make direct sales within Turkey. Such an office must will only engage in activities such as i) promoting the business of the parent company and ii) market research. A local Turkey agent or distributor must be appointed to sell goods and provide services to local companies.

Table of comparison between different Turkey entities

Summary at a glanceLLCBranchRep officeFree zone
How long to set the company up?3 weeks4 weeks4 weeks5 weeks
How long to open company bank account?3 weeks3 weeks3 weeks3 weeks
Bank signatory must travelYesYesYesYes
Issued share capital required€3,30000€3,300
Is doing business in Turkey permitted?YesYesNoYes
Allowed to sign sales contracts with Turkey ClientsYesYesNoYes
Allowed to invoice Turkey ClientsYesYesNoYes
Corporate tax payable in Turkey20%20%0%0%
Corporate bank accountCitibankCitibankCitibankCitibank
Can rent office in TurkeyYesYesYesYes
Tenancy agreement required before incorporation?NoNoYesNo
Allowed to import raw materials?YesYesNoYes
Allowed to export goods?YesYesNoYes
Can the entity hire expatriate staff in Turkey?YesYesYesYes
Do you visit Turkey for company incorporation?NoNoNoNo
Resident director required?NoNoNoNo
Resident shareholder required?NoNoNoNo
Minimum number of directors1001
Minimum number of shareholders1001
Turkey resident company secretaryNoNoYesNo
Individual shareholders allowedYesNoNoYes
Corporate shareholders allowedYesYesYesYes
Corporate director(s) allowedNoNoNoNo
Public register of shareholders and directorsNoNoNoNo
Turkey employment visa fees€3,950€3,950€3,950€3,950
How long to get work permit approved3 months3 months3 months3 months
Statutory audit requiredYesYesNoYes
Annual tax return to be submittedYesYesYesYes
Access to Turkey double tax treatiesYesYesYesYes
Estimate of engagement costs€11,710€10,210€10,410€13,260
Draft invoice

Frequently asked questions

Contact us

For additional information on our business setup services in Turkey, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
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