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Establishing a company in Turkey - The most common misconceptions

5th April 2016

There are so many misconceptions about establishing a company in Turkey and unfortunately too many foreigners do not know or understand the rules and regulations surrounding this.

A foreigner can establish any of the following companies in Turkey; Branch, LLC, Liaison office or Joint Stock company. (Please Note: Each company type process is different and the required documents are different)

If you are thinking of establishing a company in Turkey;  please check out our guide below;

Misconception - I need a Turkish Partner
As a foreigner you can establish a limited company in Turkey and own is as a 100% shareholder, with no Turkish partner or director.

Misconception - I need a Turkish Manager
You can choose to employ someone to act as a manger, but you do not need to add this person to the company.
This is a common mistake made by many foreigners, and they believe they have to give a Turkish employee legal rights in the company. This is not the case.

Misconception - I need to give power of attorney to staff
You do not need to give power of attorney to staff. You can employ staff to work for you, but they do not need power of attorney. If you are in Turkey, then a power of attorney is not required.

Misconception - Running a company in Turkey is more expensive for a foreigner
The set up fees are slightly more expensive for a foreigner, but not huge. Please speak to our legal expert about set up costs.

Misconception - I can't get a work permit
A work permit is mandatory if you want to work for your company. but it is not impossible to obtain. And your company must meet the requirements for a work permit.

Misconception - I have to employ 5 Turks to get a work permit
This is not always the case and depending on the job title and role, you may apply as a 'key person'.  The most important thing is that your limited company capital amount needs to be at least 100.000 TL

Misconception - Lots of hidden fees
Every legitimate company in Turkey has to pay taxes and payments such as; VAT (KDV in Turkey), Stopaj Tax, Income Tax, Corporate Tax, Staff Wages, Insurances (such as BAĞKUR) and accountancy fees. It is crucial that you speak to a trusted professional/accountant etc and really understand the full costs of establishing and running a business in Turkey.

YellAli is offering you a FREE consultation to discuss your company set-up with qualified and experienced professionals.
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Misconception - Too much 'Red Tape'
It's hard to disagree with this misconception, and one must remember this is a very important decision, therefore it's crucial you get the best advice and professional support. However, that doesn't mean establishing a company in Turkey is impossible, far from it. As long as you meet the requirements of establishing a company, and /or applying for a work permit, you will find it's not so difficult after all.

Misconception - You need 2 people to set up a Limited Company
You can establish a limited company with 1 person.

It's impossible - don't do it!
Everyone will have their own experiences and opinions about establishing a company in Turkey, but as long as you are aware of the FACTUAL information and legalities of setting up a company, the rest is entirely your choice.

Setting up a business and making it successful in any country around the world is difficult, but if you believe in your product and have the funds, motivation and determination to succeed, anything is possible - Best of luck!

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