FAQ

Pre Incorporation

Setting up a company in Turkey will vary depending on the company type (limited or incorporated company) and the location (mainland or free zone). Setting up the company is quite easy and fast. Please refer to our JGR team for more details on the pricing.

  1. Educated Workforce -Turkey offers educated and productive workers. English is widely spoken as a business language, therefore communicating locally is not a problem. Higher Education and training are regarded as high priority in Turkey, which has resulted in better workforce quality. Turkey offers an accessible, skilled, and cost-effective workforce, providing the fourth largest labour force amongst EU members and accession countries. It boasts a large population of over 70 m people, with an average age of 29, against 40 in the EU.
  2. Good Infrastructure and Telecommunications – The good infrastructure of the country with its well-maintained networks of highways, efficient seaport, and Central International Airports within the different cities of the country.
  3. Quality Lifestyle – Turkey is a friendly and hospitable country to live in. The total number of Japanese populations in Turkey certainly has grown throughout the years.
  4. Strategic Location – Turkey is located at a close proximity to Europe (two-three hours’ flight to major European destinations), the Middle East and the Caucasus. Turkey benefits from its location as a bridge between Europe and Asia. It also acts as an energy corridor connecting these two continents.
  5. EU Integration – Turkey entered a customs union with the EU in 1996 and has been an EU accession candidate since 2005. This has resulted in the expansion of trade relations with Europe, which now accounts for 44% of Turkey’s foreign trade.
  6. Government Incentives –The Turkish government provides various tax and non-tax incentives to foreign investors, in line with those provided to domestic companies. These include customs and VAT exemptions on various imported or locally delivered goods, including machinery and equipment, as well as priority regions offering incentives such as free land and energy support. Investors are also able to benefit from R&D support and market research with the aim of encouraging exports and increasing the competitiveness of firms in international markets.
  7. International Contemporary Economic Structure – The Turkish government has also introduced flexible exchange rate policies and liberal import regulations to promote and sustain foreign investment. In recent years, Turkish banks have taken an increasingly large role in financing project finance deals, benefiting in many cases from increasingly liquid balance sheets.
  8. Legal Framework – The Turkish legal framework offers a level playing field to foreign investors and domestic companies. Foreign ownership is unrestricted, with no pre entry screening requirements. A new commercial code is currently with the General Assembly of the Parliament for approval. The Code aims to integrate the Turkish Commercial Code with EU law, improve transparency, protect minority rights, and strengthen corporate governance principles.

Tax and State Incentives

Tax and State incentives are generally applicable to investors who establish a tax resident company in Turkey. The policy is set to encourage foreign companies wishing to engage in continuing operations in Turkey to incorporate local subsidiary company.

Generally these tax incentives are in the form of tax exemptions on profit, capital based incentives (form of allowances or deductions based on capital expenditure incurred). The incentives can be categorized in 4 categories:

a) General Investment Incentives
b) Regional Investment Incentives
c) Strategic Investment Incentives
d) Project Based Investment Incentives

Infrastructure

Foreign investors may leverage on vast infrastructure available in Turkey as this infrastructure has readily available facilities, and additional tax incentives offered within the area.

Turkey highly welcomes foreign investors to set up business in Turkey. Among key consideration that every investors should make aware of before setting up a Company are

  •       Is your business ready to expand a region which provides tremendous opportunities?
  •       A Large Number of incentives from R&D to export incentives, financial incentives should be taken into account as positive motivators.
  •       Double Taxation Treaties between the countries.

Yes, OCS Turkey can provide a Market research facility or organise a 3rd party market research company for your needs.

Turkey is a safe country to live in and to make business. Turkey encourage multicultural and friendly environment.

Turkey has made considerable progress in improving the quality of life of its citizens over the last two decades. Notwithstanding, Turkey performs well in only a few measures of well-being relative to most other countries in the Better Life Index. Turkey ranks above the average in civic engagement. It ranks below average in income and wealth, health status, social connections, education and skills, jobs and earnings, subjective well-being, environmental quality, work-life balance, housing, and personal security. These rankings are based on available selected data.

Turkey welcomes investors to set up Companies in various industries. We have shortlisted the top 10 industries Japanese businesses that previously set up in Turkey are manufacturing (auto, electrical parts, aviation, halal food products and many more), foreign trade and commerce, services, construction and engineering, transportation and warehousing, exclusive restaurants, banking and finance, tourism, insurance, and other non-manufacturing.

The National Language of Turkey is Turkish. However, English is widely understood and spoken at the workplace and is widely taught in schools.

Company Formation

Once the required documents are submitted to OCS, it takes about 7-14 working days to complete the incorporation process.

Yes. You may incorporate a private limited Company in Turkey from your home. All the signing of documents will be done through apostilled and notarized documents. However, keep in mind that you are required to have at least one (1) resident director. OCS offers nominee director service for investors who do not have any local resident director. Thus, it will make it easier for you to set up your private limited company.

Yes, our Japanese Guest Relation (JGR) will update you from time to time on the status of the application.

There is no restriction as such. As long as the business activity is allowed in the land of Turkey, then any foreign investments are welcomed. There is no restriction in taking profit out of Turkey. All investors must make sure that these investments are free of money laundering and terrorism financing.

Advantages:

  Limited liability feature – shareholders not personally liable for debts and losses of the Company. Shareholders’ liability are limited to the amount of shares subscribed.

  Shares are transferable – transfer is easy through sale of shares

  Separate legal entity – A company does not cease to exist if one or more of its shareholders die.

  Easier Access to funding – it added business credibility and good image. Thus, increase the potential of loans from financial institutions.

Disadvantages :

High and complex Taxation laws including corporate income tax and VAT

  1. Minimum 1 shareholder with a minimum paid up capital.
  2. Minimum 1 Turkey resident director
  1. Three (3) Proposed Company Name – supporting documents (if any) for special cases. Please refer to Company Formation section
  2. Business nature/ activities – maximum 3
  3. Director’s Information (example: Name, ID No, Residential Address, Email address, contact no) and copy of identification
  4. Shareholder (members) Individual type – particular information (eg: Name, ID No, Residential Address, Email address, contact no), no of share, value of shares and copy of identification
  5. Shareholders (members) of body corporate type – Particular of body corporate (eg: name, registration no, no of share and value of shares)
    •       Particular of appointed representative (individual) and copy of identification
    •       Copy of certificate of incorporation of body corporate
    •       Consent letter/ resolution on the appointment of the representative (need to be in English)
  1.   Documents from abroad need to be notarized/apostilled.

Yes, it must be either English and translated in Turkish.

Depends on the location and business activity the government entity will defer.

  1. Contact our Japanese Guest Relation team at H.I.S. Co., Ltd. 
  2. We will define your business nature and activities to match your objective in Turkey.
  3. Decide your shareholding structure with minimum one Shareholder. 
  4. Decide the key positions of Directors with minimum one Director.
  5. Fill in our Incorporation Form and provide the required documents.
  6. Sign our Client Service Agreement and make payment.

After Company Formation

Turkey is a large country consisting of 81 states with 7 geographical regions. İstanbul/İzmir/Manisa/Bursa/Sakarya and Eskisehir are the cities which are more favoured and Marmara region is the preferred region from many perspectives.

As for services, if you are looking to set up business at a high traffic location, İstanbul as the city and Marmara as a region are the main central for services companies to set up.

1)  Appointment of Company Director/Manager

The Board must appoint one resident Company Director/Manager at the date of incorporation.

2)  Appointment of Auditor

The Board must appoint an auditor who is a licensed practitioner in Turkey at least 30 days before the end of the period of submission of the first financial statements.

3)  Open Bank Account

4)  Register of Company Tax and Employer Tax

5)  Registration of Employees Provident Fund

6)  Registration of Social Security Organization

7)  Registration of Employment Insurance System

 In Turkey, different banks have different requirements  and documentations required. You are advise to speak to the respective bank for opening a local bank account.

Yes, you are allowed to open a Japanese bank account in Turkey. In Turkey we have JBIC and MUFG Bank (Turkey)  that currently have local presence in Turkey. OCS provides additional services in assistance of opening bank  accounts from Japan with Japanese banks.

The next step after registering with above bodies, the Company may proceed with a business license application. It is essential for every business to have a valid license to start a business in Turkey. Generally, there are 2 different group of licenses involved, namely:

a)  Industry/ Sector – Specific Licenses
b)  Activity – Specific Licenses

Generally, Companies who want to apply for foreign expatriates’ visas need to go through the Immigration Department of Turkey. The Company must be applying for a work permit and residency permit for foreign expatriates which is a quite smooth and fast process. OCS Turkey provides assistance in applying for a work visa to help ease the whole process.

Standard rate for Value Added Tax (VAT) is at 18%. However, for certain products for example exports of goods and related services; newspapers and magazines; and basic products (food necessities, pharmaceuticals and medical products) are charged at a reduced rate at 0%,1% and 8% accordingly.

Resident Company are being taxed at 22% as corporate tax in 2021.

Excise duties are imposed on some selected range of goods manufactured in Turkey or imported into Turkey. No excise duties on export goods.

Yes, OCS provides one stop solution for tax consultation, audit, and legal services.

 Yes, our Japanese Relationship Manager in Japan and in Turkey are able to assist you with your needs and inquiry.