Benefits of establishing companies in Turkey

There are many benefits to establishing companies in Turkey, especially since foreign investors in Turkey have the same rights and duties as local investors, as international direct investments in Turkey are based on the concept of equality between them.
In this article, we will mention the most prominent benefits of establishing companies in Turkey, in addition to the most important Conditions that you must apply before establishing a company in Turkey.

What are the benefits of establishing companies in Turkey:

Turkey encourages foreigners to invest in its territory through a series of reforms that have strengthened the investment environment in Turkey, and this represented in reducing costs, facilitating transactions and granting a lot of privilege to each investor who wants to establish his own company in Turkey.
Perhaps one of the most important benefits of establishing companies in Turkey:

1- Large purchasing power: the Turkish market occupies the first place among the twenty largest economic markets around the world, which helps you to market your products within the European Union with ease.
2- Ease of export: The Turkish government exempts the goods that are exported from it from taxes, and this feature is perhaps one of the most encouraging investors to choose Turkey to start investing in it.
3- Investors get many privileges: the
most important of which is that they and their families have health insurance that guarantees that they receive free treatment in health centers and hospitals of the Turkish state, in addition to allowing their family members to enter schools and universities.
It will also give investors in Turkey social security, which is a sum of money provided to you by the Turkish government in the event that your company loses or you close it, provided that your company remains active for at least two years, in addition to obtaining an amount after the end of your work on Turkish lands, which is called with a "retirement pension".
4- Support your investment:
The Ministry of Economy will provide you with support if you market Turkish products and hold exhibitions abroad.
5- Merchant card:
It is a commercial license valid for three years granted to investors in Turkey. This identification card contains the investor’s name, photo, commercial license number and membership number. The holder of this card in Turkey enjoys many privileges, the most important of which are:

1- You can show it as an identification document at airports, government departments and banks, so that it will help you in facilitating the procedures.
2- This card gives you the right to attend exhibitions without having to book in advance.
3- Hotels in Turkey give discounts to merchant card holders.
4- The merchant card strengthens your file when presenting it to the embassies in order to obtain a visa to travel to one of the countries to work and trade there.
It is worth noting that the merchant card is extracted from the centers of the chambers of commerce distributed in all the governorates of Turkey, so that the application for obtaining it is made through the company’s legal accountant by filling out a special form signed by the concerned person and sending it to the responsible employee, who in turn will send the card within ten days.
Thus, you have seen the most important benefits of establishing companies in Turkey, and now let's get acquainted with the types of companies in Turkey.

What types of companies can you establish in Turkey?

Before you start the steps of establishing your own company in Turkey, you must have sufficient information about each type of company in the Turkish market, which will help you choose the most appropriate type for you. The types of companies in Turkey are divided into:

Cooperative company:

They are partnerships with variable and joint projects established by legal persons, in order to provide and protect their economic interests, especially their needs related to their professions, and this is done through mutual assistance, solidarity and monetary contributions.
The company is established by at least seven partners, and it is not considered a private company or a capital company, but rather a commercial company like other companies.

Limited Partnership Company:

This type of company may be established by
at least two persons, one of whom is a limited partner with unlimited liability and the other is a leading partner with limited liability.
The liability of the partners is limited to the amount of the
capital they have placed and committed.

Limited Liability Company:

It is a company with a specific capital divided into shares, and it is responsible only for its debts with its assets, as the shareholders bear any debts that the company owes, so that they are obligated to pay the capital shares that they pledged and stipulated in the company's contract.
It is possible for this type of company to be established with one or more partners, provided that the number of partners does not exceed fifty.
The establishment of this company requires an amount of no less than ten thousand Turkish liras, to be paid in full or in installments within 24 months since the date of registration of the company.

Collective company:

It is established by at least two partners and does not require a specific capital, and each shareholder has the right to manage the company separately.

Joint Stock Company in Turkey:

A joint stock company in Turkey is a company whose capital is divided into shares, and a joint stock company is allowed to be established for all economic purposes, and the joint stock company is the only type of company whose shares are offered and its shares are traded on the stock exchange
. At the company's head office.
The minimum capital required for this type of company in Turkey is 50,000 TL.

These were the most important types of companies in Turkey. As for the cost of establishing companies in Turkey, you should bear in mind that your budget covers the following requirements:

1- Company headquarters :

To establish a company, you must own or rent any office or shop to carry out the activities of the company.
The cost of renting the headquarters is approximately 2000 Turkish liras per month, in addition to the amount of insurance and the cost of the real estate office or broker, so that the total amount is approximately 8000 Turkish Liras.
It is worth noting that you can use a fictitious or virtual headquarters that is already present, but you do not practice your company's activities in it and it is considered an address for your company only, and this matter in Turkey is 100% legal.

2- The company’s capital:

According to Turkish law, you must have at least ten thousand Turkish liras before you are allowed to start your company, and the larger your capital, the greater the facilities and support you will receive from the Turkish government.
It is worth noting that if your capital reaches one hundred thousand Turkish liras, you will enjoy many privileges, the most important of which is granting you a work permit or residence, and allowing you to join commercial organizations.

3- The company’s obligations in Turkey:

Your company will need a legal accountant who will be responsible for the company’s accounts before the state. The legal accountant is considered the most important element of the company’s success in that he receives and records invoices, expenses and purchases at the end of each month, and in the event of any violation, it may lead to the closure of your company.
It is worth noting that Turkish law requires the presence of a certified accountant, who will cost you at least 450 Turkish lira per month.
It will also pay an amount of approximately 1,200 pounds annually for the company's books.

4- Company taxes :

Quarterly taxes, in addition to annual taxes, and rental taxes may cost you between 1,800 and 2,500 TL.

Thus, you will have a general picture of the benefits of establishing companies in Turkey, in addition to knowing the many types of companies, and finally knowing the budget that you must have before starting your investment in Turkey.