Turkey company registration
Healy Consultants Group PLC
02 April, 2014
Being ranked as the 34th best country in the world for protecting investors, Turkey offers an excellent business environment. Plus, the country has an incredibly young population, with more than 27 million people under the age of 25 providing a large supply of skilled and unskilled labour. Turkey company registration has the following advantages:
A Turkey limited liability company can be incorporated within one week, with a minimum of one shareholder and one director of any nationality. Thus a Turkish entity can be wholly foreign owned.
The minimum paid up share capital is â¬3,300 and you will not need to travel to complete the engagement.
A Turkey Free Zone company pays no corporate tax, VAT or custom duty.
Free zone companies are also allowed free repatriation of their profits back to the parent company.
A Turkey holding company is an excellent way to book global profits while legally minimizing international tax because i) dividend income from all sources is legally tax exempt ii) sale of shares of a foreign subsidiary is also fully tax exempt ii) Turkey has free trade agreements with 22 countries, reducing export and import duties to 0%.
A Turkey company with a minimum share capital of at least â¬250,000 is eligible for tax benefits including eligible companies receive partial exemption from corporate tax, with a maximum 50% exemption rate available.
Turkey is expected to be the fastest growing economy in Europe because its economy is one of the most rapidly expanding in the world, with the Turkish economy tripling in size between 2002 and 2012.
Turkey boasts several industries that are great investment opportunities including i) a rapidly growing export sector, with a 325% growth in the sector since 2002 ii) a world-leading agricultural sector, with agriculture being a 350 billion dollar industry in the country iii) Europe's fastest growing steel industry, which is now the 10th largest steel industry in the world.
Entrepreneurs who invest in Turkey are not required to submit their personal details for public record, thereby allowing greater privacy.
Turkey is a relatively inexpensive country, compared to other countries in Europe. Office space and apartment rent in Turkey costs only a sixth of what it costs in London.
Before entering the Turkey market, foreign investors should be aware of the country's compliance regulations, including:
The Memorandum of Association is a contract between the shareholders and comprises i) company activities ii) registered office address iii) shareholders and director details iv) share capital v) profit distribution method.
Every company must lodge an annual return confirming relevant details of the company for the public register including names and addresses of all directors, address of principal place of business and details of shareholders and their shareholdings. A company is exempt from this obligation if there have been no relevant accounting transactions in the financial year.
Annual audited financial statements must be submitted to the Turkish Trade Registry.
A private Turkey company is required to maintain both a local registered address and a local resident company secretary.
Company information such as capital structure, shareholder and director details for a Turkey offshore company do not need to be made public.
Each company must have a registered office in Turkey.
All business activities conducted in Turkey receive government approvals and permits and licenses.
When employing local or foreign workers, employers must make sure to stay compliant with the Employment & Labor Law, the main set of laws governing labor in Turkey. The current labor laws most resemble the English system of labor laws, in terms of employer responsibilities.
Employers in Turkey are required to contribute towards their employees' Social Security Account, at a rate of 19.5% of the employees' gross salary.
When incorporating in Turkey, a license is required for all business activities. Healy Consultants can assist our Client in determining what operating licenses are required for their company.
Turkey boasts a strong legal system, which processes disputes and settles contracts 4 months quicker than the European average and enforces property rights throughout the country. In addition, Turkey is ranked above the OECD average in all major aspects of protecting investors and recent reforms implemented have made Turkey an even safer investment option.
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