Company formation in Turkey
Turkey offers a natural gateway to three of the world’s largest and most dynamic markets: Europe, Asia and the Middle East. No wonder its economy is booming, up 34% over the four years to 2005, and still growing more than 5% per annum.
- The minimum share capital for a limited liability company is between 5,000 and 10,000 TL (US 3,200 – US6,400). However the recommended amount is 50,000 TL for non-Turkish Directors
- At least 25% of the authorized share capital must be paid up after the company is established.
- Minimum of one shareholder required.
- Minimum of one director required (may be either Turkish or Foreign)
- For non-Turkish clients who need a Work Permit the minimum requirement will be a physical office, as you will have to employ local staff
- To apply for a work permit you should aim to employ at least 5 – 8 local Turkish staff.
- A local Accountant must be appointed before company registration is complete. We can provide one.
- Company formation packages available. Ask now.
Turkish companies are best used for general trading purposes, especially for those aiming to enter the Middle East and Golf countries markets.
LIMITED SIRKET FORMATION PACKAGE
| Formation of Limited Sirket
- Company formation (personal visit is required)
- Bank account set
- VAT registration
| €3,900 (one-off)
- Notary and government fees
| €1,150 (one-off)
- Work Permit (if required)
| €1,500 (one-off)
|TIMEFRAME: Incorporation and VAT: 7-10 days; bank account: 1 week
| Annual fees
- Legal address & Virtual office
- Telephone, fax and mail forwarding facilities
| €490 (per month)
|| €490 (per month)
Apply for this package.
Or ask for alternative package.
- CORPORATE INCOME TAX (CIT): The standard rate is 20%
- INCOMING DIVIDENDS:0% if Participation Exemption applies:
- the foreign company paying out dividends is a limited liability company;
- the Turkish company holds at least 10% of share capital for at least 12 months;
- the subsidiary company is subject to corporate income tax rate of at least 15% (for trading company) or 20% (for investment company);
- CAPITAL GAINS TAX (CGT): Participation Exemption applies to 75% of Capital Gains, if the conditions are met.
- WITHHOLDING TAX:
ROYALTIES: 15% which can be reduced under a Tax Treaty.
DIVIDENDS: 15% which can be reduced under a Tax Treaty.
INTERESTS: 0% if the entity is a Financing Company. Companies that do not qualify as financing pay 10% withholding tax on paid out interest.
- BILATERAL TAX TREATIES with 74 countries including UAE and Singapore.
- VALUE ADDED TAX (VAT). The standard rate for inland sales is 18%.