Company formation in Turkey

• 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.

• 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%.

• Chose the structure that fits your business. Need help? Contact us.
• Contact us for Company Package Fees.
• Follow our Compliance Policy