Opening a company in Turkey can be a lucrative opportunity for foreigners. A big consumer market, excellent geographic location, and possibilities for economic growth make Turkey a popular business hub for foreign investors. Even the government supports foreigners to establish a company in Turkey.
According to the Foreign Direct Investors Laws 4875, foreign investors need to follow the same obligations. They have the same rights as local investors in Turkey.
Which Type of Company Can A Foreign Investor Establish in Turkey?
Foreign investors can open any type of company specified in the Commercial Code of Turkey or ordinary companies in the Turkish Code of Obligations. So, according to the rules, the foreign investor can open any of these types of Turkish companies:
Sole Proprietorships:
Here’s a list of sole proprietorships that a foreign investor can consider when opening a company in Turkey:
- Cooperative Company:
It is not a capital or private company but a commerce company that a minimum of seven partners can establish.
- Limited Company:
A limited company is one whose capital is definite and is divided into shares. A single shareholder can establish this type of company.
- Ordinary or Private Company:
An ordinary or private company is a limited partnership company established by at least two people.
- Collective Company:
Foreign investors can establish collective companies, provided there should be two partners who are real persons. Both partners have the right to manage the establishment separately.
Capital Companies:
If foreigners wish to open a capital company in Turkey, they can consider any of the following types:
- Limited Liability Company
This type of company is the most common entity that conducts business within Turkey and engages in industrial or commercial activities. The LLC should appoint one director alongside one shareholder.
- Joint Stock Company
The Joint Stock Company are for economic purposes as well as subjects, which are non-prohibited according to Turkish law. The company’s capital is definite and divided into different shares (that are liable for debts with the property holdings).
- Limited Partnership Divided into Shares
The limited partnership company comprises two types. For a foreign investor, Turkey opens doors of opportunities to initiate a business based on a limited partnership divided into shares.
Aspects to Learn Before a Foreigner Establishes a Company in Turkey
According to the Foreign Direct Investment Law 4875, foreigners can establish companies in Turkey. Before opting for company registration in Turkey, one needs to understand the following aspects:
- Foreign investors planning to set up a Turkish establishment should submit requisite documents after deciding on the company type
- If foreign investors wish to establish a sole proprietorship, they must have a work license (they should also reside in the country with a 5-years residence permit)
- Another criterion is that the investor also needs to deposit a small percentage, 0.04% of the total capital, to its competition institution
If you are planning to establish a company in Turkey as a foreign investor, learn more by visiting this link: https://www.fo-consultancy.com/.
