Company Establishment Procedures
No, it is not mandatory. Under the Foreign Direct Investment Law, foreign investors have equal rights with domestic investors. Through a notarized power of attorney and apostilled documents, without the investors having to come to Turkey, the company formation for foreigners procedures can be carried out end-to-end by our Ankara-based expert team.
The most significant differences lie in minimum capital amounts, ease of share transfer and liability for public debts. While share transfers are more flexible in joint stock companies, limited liability company partners are liable for public receivables with their personal assets in proportion to their capital shares. For investors with strategic growth goals, a joint stock company formation structure is generally recommended, while for a more flexible start, limited liability company formation is preferred.
Yes, according to the Turkish Commercial Code (TCC) and Tax Procedure Law (TPL) virtual office and legal address is a legal and valid method. For the company headquarters to operate, it is sufficient to have a legal address where official notifications can be received and the tax office on-site inspection can be carried out.
Yes, by obtaining permission from the Ministry of Industry and Technology, foreign companies can carry out branch and liaison office formation to analyze the Turkish market, conduct feasibility studies and build a network. Liaison offices are prohibited from engaging in commercial activities and generating income; all expenses must be covered by the head office abroad in foreign currency.
Investors aiming to expand into global markets should assess their plans within the framework of the target country's tax legislation and commercial law. Taking into account the choice of company type and double taxation avoidance agreements, company formation abroad procedures are implemented with a planned legal strategy.
Accounting & Financial Reporting
The financial records of all commercial enterprises in Turkey are kept in accordance with the Uniform Chart of Accounts (TDHP) set by the Ministry of Finance and the provisions of the Tax Procedure Law (VUK). This statutory process, meticulously recorded in the journal, general ledger and inventory books by our general accounting services unit, safeguards your company's financial memory.
E-document applications are mandatory for companies exceeding the annual gross sales revenue thresholds set by the Revenue Administration (GİB) and for firms operating in specific sectors such as e-commerce, real estate or motor vehicle trade. Financial seal integration, application processes and infrastructure setup are completed, integrated into your technical infrastructure, by our e-transformation and e-invoicing services experts.
IFRS is a legal requirement for companies that meet the independent audit criteria set by the Public Oversight Authority (KGK). In addition, to integrate their subsidiaries or branches in Turkey into their own global financial statements (consolidation), foreign-based parent companies periodically request data prepared to international standards within the scope of financial reporting services .
Accounting reports prepared in accordance with TPL standards provide retrospective, static financial data to calculate the tax payable to the government. Management reports, on the other hand, include the company's immediate cash flow, departmental profitability, budget-actual deviations and future projections (Forecasting), directly guiding the board's strategic decision-making, investment planning and risk management.
Although it varies depending on the type of activity of the business; Value Added Tax (VAT) and Withholding Tax (or Withholding and Premium Service Declaration) must be submitted every month, Provisional Tax on a quarterly basis and Corporate Income Tax declaration once a year in April of the following year. The timely accrual and cost optimization of all these declarations are monitored by our expert financial advisors.
Human Resources & Payroll
The company must have a minimum paid-in capital of TRY 100,000 or a certain turnover. In addition, for each foreign employee for whom a work permit is sought, at least 5 Turkish citizens must be employed in the company as insured workers (the 5-to-1 rule). The process is carried out by our work permit consultancy unit on a sound legal basis, with complete document management.
The biggest advantages are salary confidentiality, the elimination of human error in personnel cost calculations and instant compliance with constantly changing labor legislation. Freed from operational and risky burdens, in-house HR departments can, with the support of payroll services , focus on strategic performance management.
Within the framework of current legal regulations, it is essential that companies make full use of current-period SGK premium incentives to reduce personnel costs. Through the SGK incentive consultancy analyses carried out by our experts, businesses with no debt to SGK are able to benefit from employment incentives at the highest level within legal limits and to optimize their costs.
The insured employment start declaration must be submitted to the SGK system at least one day before the employee actually starts work. The termination declaration must be filed with SGK electronically within 10 days following the employee's separation date. Penalty-free, complete tracking of these declarations is meticulously managed by us within the scope of our payroll services .
Non-resident board member partners of joint stock companies and partners of limited liability companies who are not company officers are exempt from work permits. However, foreign partners who are the official managers of a limited liability company are legally required to obtain a work permit to carry out their business activities. To avoid erroneous transactions and administrative fines, obtaining work permit consultancy is a critical step.
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