Shared between Europe and Asia, Turkey has become over the past ten years one of the quickest growing economies in the world. Some of the things that led to such a situation are Turkey’s geopolitical position as well as its young population. If you’re planning to expand your business in Turkey, it will be profitable for you to read this article.
The basics of opening a business
To establish a business on the Turkish soil as a foreigner, you must know the basics related to doing business in that country. As a matter of fact, certain key factors that are important while getting on with a business appear to be:
- Having Capital Investment
- Residential Permit
- Obtaining a visa for Startup
- Deciding the Business’ Legal Entity
- Legal Issues
- Managing Employees
- Growth of Business
- Bank Accounts, Accounting and Profit
These are certain of the big issues for people who are about to start a business in any country. Based on these essential parameters, let’s try to check what it takes to establish a business in Turkey.
Obtaining a visa for Startup
As an investor feeling eager to start a business in Turkey, you need to get your application form filled with the required documents. The application form must be submitted to the closest consulate or embassy of Turkey you find wherever you reside.
The provided documents must contain labor contracts and a letter of assignment. Within ten days, your partner in business or employer has to submit those documents to the Turkish Ministry of Labor. After the visa is granted, you have to enter Turkey within 180 days.
Establishing your Business in Turkey
Now that you have obtained your visa, you can establish your business by founding your company. Basically, there are three kinds of corporate companies: limited liability company, joint stock company and Cooperative Company. You also have the possibility to establish your business in partnership, as sole proprietor, etc. If you wish to establish your business in Turkey with lower costs, you need to get information about payroll in Turkey.
Before you make the choice of your business’ legal entity, make sure it is the good type of business for you. Also, it depends on the investment amount. As far as the oversea businesses are concerned, JSC and LLC mostly work.
Getting your Business registered and obtaining TIN
For the registration of your business, you will be called to submit a given number of documents including:
- Your photo
- Visa and Passport
- ID card of your home country
- Bank account
- Residential proof
- Proof of capital investment
Once you register your business, you will be requested to access your TIN. The latter is the number related to your tax identity. You will have to use TIN for your business and also to pay taxes. It will also be asked that you get registered to trade registry office.
Cost of establishing Business in Turkey
Opening business in Turkey appears to be a bit expensive due to the high wages that workers charge in the country. As a matter of fact, the cost of employer appears to be 441.20 dollars while net minimum charge for work costs 348.50 dollars. Apart from this, you will also have to face costs for gas, electricity, petrol, water, etc.
If your business is established in Turkish elite cities, you need to get aware of the fact that the cost of living in these places is very high. Master Card and Visa are two general kinds of cards that are used on the Turkish territory. So, in case you own your Master Card or debit and credit card of Visa, you’ll be able to do transaction easily.