Guide to Company Incorporation in Turkey

1. What is the minimum share capital of a Turkish Limited Liability Company?
The most common form of business in Turkey is the Limited Liability Company
established by two or more shareholders who must provide at least 2.400 EUR as
minimum capital.

2. What is the minimum share capital for a Turkish Joint Stock Company?
In order to set up a Turkish Joint Stock Company, which is designated for larger
business, the founders must provide a minimum capital as high as 24.000 EUR.

3. Are there any special requirements for establishing a Limited Liability Company
in Turkey?
Setting up a company in Turkey may be extremely profitable for an entrepreneur
looking to invest abroad. However there are certain regulations that need to be taken into
consideration. A Limited Liability Company must have a registered office in Turkey and
a legal representative to carry out the incorporation process. All of the shareholders can
be citizens of Turkey or foreigners, and there is no restriction as to the nationality of the
company's director. Even though all the procedures can be completed with the help of a
representative, authorized with Power of Attorney, and as a result the company founders
do not have to travel to Turkey, some banks request the presence of the bank titular in
order to sign the bank agreement. Work permits are required only for foreign employees
who are enrolled in the social service scheme of the country. Also a work place opening
license is required, and usually it can be obtained with a special application filled by the
legal representative.

4. How can I register for VAT in Turkey?
Foreign companies which comply with the amendments for taxable supplies in Turkey
are required to register for VAT. In order to register your company for VAT purposes, a
notification at the local tax office where the company's place of business is located must
be made. The institution requires a detailed form filled by the founders, and attached
specific company documents such as articles of association, company charter and power
of attorney of the representative. Moreover the application should also contain detailed
information on the number of shareholders, their address and name, as well as the
director's and management board. After obtaining the VAT number the company must
comply with the legal requirements of taxation.

5. How can I open a bank account in Turkey?
The bank account of the company is mandatory, as the company is obliged to deposit the
minimum capital and hold transactions. Usually the process is straightforward and the
founders need to provide their complete information, as name, address, etc., and certain
company documents including registration certificate. If the account is opened through
a legal representative, the power of attorney authorizing him or her to sign the bank agreement is necessary. The Turkish bank account is set up in a matter of days and it can
be managed online with internet banking, which most Turkish banks offer.

6. How can I recruit personnel in Turkey?
Turkey has a dense population of over 73 million people, of which most is well skilled
and the unemployment rate of 10% is quite high. This enables employers to find workers
quite easy, browsing through internet websites or hiring recruitment agents which offer
consultancy and best suited solutions for companies.

7. What is the average salary in Turkey?
Besides a well structured social security system, employees in Turkey benefit from a high
quality of life which reflects in the country's average salary.

8. What is the overall economical situation in Turkey?
Turkey ranks as one of the dynamic countries, economically speaking, with a highly
developed infrastructure and competitive workforce. In the past decade, Turkey has
transformed tourism in an important branch in its economy, as well as an international
trade force. The domestic market and productive workforce make Turkey one of the
most profitable countries in the top preferences of investors. In terms of regulatory
environment for foreign investors, Turkey is committed to liberal business environment,
encouraging foreign investment by offering equal and non-discriminatorily treatment.

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