Unlocking Opportunities for Foreign Entrepreneurs in a Thriving Economy

Türkiye, a country strategically located at the crossroads of Europe and Asia, has emerged as a popular destination for foreign entrepreneurs and startups. With its thriving economy, favorable business environment, and streamlined registration process, Türkiye offers a unique opportunity for entrepreneurs to establish a successful business and obtain residency. In this comprehensive guide, we will walk you through the steps to start a business and obtain residency in Türkiye, highlighting the key requirements, regulations, and best practices for foreign entrepreneurs.

Starting a Business in Türkiye: An Overview

Introduction to Business Ownership in Türkiye

Foreign entrepreneurs in Türkiye have the same rights as Turkish citizens regarding business ownership, allowing for 100% foreign ownership in both Limited Liability Companies (LTD) and Joint Stock Companies (A.Ş.). This means that foreign entrepreneurs can establish and manage a business in Türkiye without the need for a local partner.

Brief Explanation of the Two Most Common Business Structures

The two most common business structures for foreigners in Türkiye are:

• Limited Liability Company (LTD): Requires at least one shareholder and a minimum capital of 10,000 TRY.
• Joint Stock Company (A.Ş.): Requires a minimum capital of 250,000 TRY, with at least 25% deposited before incorporation and the remainder within 24 months.

Choosing the Right Business Structure

When choosing a business structure, it’s essential to consider the specific needs and goals of your business. Here’s a detailed comparison of LTD and A.Ş. business structures:

Limited Liability Company (LTD)

• Minimum Capital: 10,000 TRY
• Shareholders: At least one shareholder
• Management: Managed by a single manager or a board of managers
• Liability: Shareholders’ liability is limited to their share capital

Joint Stock Company (A.Ş.)

• Minimum Capital: 250,000 TRY
• Shareholders: At least one shareholder
• Management: Managed by a board of directors
• Liability: Shareholders’ liability is limited to their share capital

Step-by-Step Process to Start a Business in Türkiye

Step 1: Choosing Your Business Structure

Selecting the right business structure is crucial for the success of your business. Consider the following factors when choosing between LTD and A.Ş.:

• Business Size: LTD is suitable for small to medium-sized businesses, while A.Ş. is more suitable for larger businesses.
• Management: LTD can be managed by a single manager, while A.Ş. requires a board of directors.
• Capital: LTD requires a minimum capital of 10,000 TRY, while A.Ş. requires a minimum capital of 250,000 TRY.

Step 2: Obtaining a Tax Identification Number

To obtain a tax identification number, you’ll need to visit a local tax office and provide your passport. The tax identification number is required for all business transactions in Türkiye.

Step 3: Conducting a Company Name Search and Reserving the Name

Conduct a company name search through the Turkish Trade Registry to ensure that your desired company name is available. Once you’ve found an available name, you can reserve it through the Turkish Trade Registry.

Step 4: Preparing Required Documents

The required documents for business registration in Türkiye typically include:

• Articles of Association (AoA)
• Proof of Address: Lease agreement or ownership documents
• Copies of Shareholders’ Passports
• Notarized Signatures of Company Managers
• Founders’ Declaration

For foreign documents, apostille certification is required to validate them for use in Türkiye.

Step 5: Submitting Documents and Paying Registration Fees

Submit the required documents and pay the registration fees at the Trade Registry Office. The registration process typically takes a few days to a week.

Step 6: Receiving a Company Registration Certificate and Registration Number

Upon approval, you’ll receive a company registration certificate and registration number. These documents are required to open a local business bank account and register for social security.

Additional Considerations for Foreign Entrepreneurs

• Share Transfers in A.Ş. Companies: Share transfers in A.Ş. companies are generally flexible and do not require notarization or official registration unless specified in the Articles of Association.
• Board of Directors for an A.Ş. Company: The Board of Directors for an A.Ş. can consist of a single member, who may be an individual or a legal entity.
• Language Barriers and Document Formatting Requirements: Language barriers and document formatting requirements can pose challenges; using professional translation services is advised.

Obtaining Residency in Türkiye through Business Investment

To obtain residency in Türkiye through business investment, you can choose from the following options:

• Depositing at least $500,000 into a Turkish bank account
• Making a $500,000 fixed capital investment into a Turkish business

Applying for a Residence Permit

After company formation, foreign business owners can apply for a residence permit, typically under the “short-term residence permit” category, which is often granted to company shareholders and directors.

Conclusion

Starting a business and obtaining residency in Türkiye can be a straightforward process if you follow the steps outlined in this guide. Remember to consult with legal and business professionals familiar with Turkish regulations to ensure compliance and streamline the process.

Recommended Next Steps

• Consult with a Lawyer: Consult with a lawyer familiar with Turkish regulations to ensure compliance and streamline the process.
• Use Professional Translation Services: Use professional translation services to navigate language barriers and document formatting requirements.
• Register with the Turkish Trade Registry: Register your business with the Turkish Trade Registry to obtain a company registration certificate and registration number.

By following these steps and recommendations, you can successfully start a business and obtain residency in Türkiye, unlocking opportunities for growth and success in a thriving economy.