Starting a Business in Turkiye as a Foreign Graduate
Key Advantages for Foreign Entrepreneurs
Equal Rights for Foreigners
Foreign nationals have the autonomy to own and operate Turkish companies either individually or in collaboration, without the necessity of a local partner or director. This legal parity simplifies the business landscape for foreign graduates who aspire to launch enterprises in Turkiye.
Access to Government Incentives
Turkiye offers an array of government incentives for startups, including:
- Tax Benefits: Tax exemptions and reductions in specific sectors like technology, tourism, and real estate.
- Grants and Loans: Financial support targeting innovation and entrepreneurship.
- Free Trade Zones: These zones provide a competitive edge with duty exemptions and simplified customs processes.
Multiple Business Structures
Foreign entrepreneurs in Turkiye can select from various business structures, which include:
- Limited Liability Company (LLC)
- Joint Stock Company (JSC)
- Sole Proprietorship
- Branch Office
- Liaison Office
Among these, LLCs are the most popular and beneficial for small to medium businesses, offering a balance of flexibility and protection.
Simplified Regulatory Environment
The bureaucratic processes related to business establishment have been streamlined in Turkiye. Dedicated registration offices are available to assist foreign investors, making the entry process more efficient.
Step-by-Step Guide to Starting a Business
1. Choose a Business Structure
Selecting the right structure is crucial. The options you may consider include:
- LLC: A minimal requirement of about 50,000 TL in capital, making it suitable for smaller enterprises.
- JSC: Offers greater access to capital with a higher starting capital threshold (approximately 250,000 TL), better suited for larger ventures or attracting investors.
- Sole Proprietorship: A less complex option without a capital requirement, although it necessitates a residence permit.
- Branch or Liaison Offices: Ideal for extending existing operations or for non-commercial engagements.
2. Obtain a Tax Identification Number
To engage in legal and financial activities, acquiring a tax identification number is essential. This can be done at the local tax office or via the digital tax office using your passport.
3. Reserve and Register Your Company Name
Confirm the uniqueness of your proposed business name through the Turkish Trade Registry and reserve it during the registration process.
4. Prepare Required Documentation
Essential documents include:
- Articles of Association
- Passports of founders/directors
- Proof of address (rental contract or property deed)
- Board resolution (if applicable)
- Notarized signatures and translations
- Power of attorney (if applicable)
- Receipt of capital deposit
5. Company Registration
Submit the necessary documents through the MERSIS system, the national registration platform, and apply at the Trade Registry Office to finalize your business registration. The company will be published in the Commercial Registry Gazette.
6. Open a Turkish Bank Account
To activate your company, you’ll need to deposit the minimum required capital into a Turkish bank account.
7. Register for Social Security and Taxes
Obtain registration with the Social Security Institution (SGK) and the tax office to ensure compliance with payroll and operational tax requirements.
8. Obtain Required Permits/Licenses
Depending on your specific business sector, additional licenses or permits may be required, particularly for industries such as food service, tourism, or education.
Ongoing Compliance and Reporting
Maintaining transparent records is essential for your Turkish company. Entrepreneurs must submit regular tax returns and adhere to Turkish Financial Reporting Standards or IFRS. This compliance extends to the submission of annual reports and financial statements to the Trade Registry and other relevant authorities.
Conclusion
Starting a business as a foreign graduate in Turkiye is designed to be accessible and supportive. With the advantage of equal rights, streamlined processes, and robust government incentives, international entrepreneurs can establish successful ventures, particularly in innovative sectors. Navigating the local regulations effectively, combined with thoughtful selection of company structure, will set the stage for success in the Turkish market.
Explore relevant opportunities and connect with Study in Turkiye for more guidance on how we can assist in your academic and entrepreneurial journey.
Take the Next Step with Study in Turkiye
Don’t miss out on your chance to explore further opportunities in Turkiye. Start your journey today!