Hizmetlerimiz

Establishing a Business in Turkey (General Process for a non-resident foreign partner)

Company Registration: General Process and Fees

-This document contains general information and process on registering a company in Türkiye with a non-resident foreign partner. The process is 15-20 days in total, including the shipping process of the documents.

1. POA – Power of Attorney

There will be two POA process. First POA process; The POA is given by the partner or partners to CPA to establish the company. Second POA process; The POA is given by the Foreign Authorized Representative to the CPA to represent the newly established company and make the company jobs for example opening a bank account. The second POA process will be made after the Company Registration. Because at the first POA process there is no such company and Authorized Representative of the company.

This means the client will go to the Turkish Consulate twice for the two POA process’. The POA process: The client will work with a Sworn Translator. The client’s passport will be translated in to Turkish by the Sworn Translator. The client and the Sworn Translator will go to the Turkish Consulate together. There will be two transactions at the Consulate:

1.1 The Client’s translated passport photocopy will be notarized. (Three copies)

1.2 The client will give POA to CPA to establish a business. The POA paper will be in Turkish (this is the reason for Sworn Translator is coming with the client), so there won’t be any translator fees in Türkiye after that. It’s a good idea to make a call and make an appointment before arriving to the Turkish Consulate. The expected fee in Turkish Lira(TL):

 3,500.00-TL (This fee is not fixed and will be calculated and charged from The Turkish Consulate.)

 3,500.00-TL (This fee is not fixed and will be calculated and charged from the Sworn Translator for its services.)

2. Post (7-15 days)

The POA Papers and notarized passport photocopy (Three copies) will be posted to CPAs address. The expected fee in Turkish Lira(TL):

 1,000.00-TL (This fee is not fixed and will be calculated and charged from Post Office, to post the papers.)

3. Choose a company type (LLC or JSC) and a company name.

As mentioned in “The Detailed Registry Process” file about company types. There are five types of companies. As Keskin Muhasebe we recommend LLC with a Turkish Lira Capital to register. 4. Address The virtual office address will be provided. The expected monthly payment included VAT in Turkish Lira(TL):

 800.00-TL (This fee will be charged from a virtual office company.)

5. Registration (1 workday)

When the POA papers and notarized passport photocopies arrives in Türkiye, the CPA will organize the documents mentioned in “The Detailed Registry Process” file. And the CPA will make an appointment for registration from the Trade Registry Directorate. The expected fee in Turkish Lira(TL):

 10,000.00-TL (This fee is not fixed and will be calculated and charged from the Trade Registry Directorate.)

6. Tax Number (1 workday)

The CPA will go to the Tax Office for the tax number. The tax number is ready after the registration. The importance of going personally to the tax office is for other obligations. These obligations named as beneficial owner notification (to track black money), e-notification system registration. The expected fee in Turkish Lira(TL):

 100.00-TL (This fee is not fixed and will be calculated and charged from The Turkish Tax Office.)

7. The Company Registration job is done.

The registration is complete, and the company is ready to do business in Türkiye. The Registry Office and Tax Office will give receipts for the fees charged. The CPA will organize an invoice for the services it made. The expected fee in Turkish Lira(TL):

 10,000.00-TL (This fee is fixed and will be charged from the CPA for its services.)

8. Opening a Bank Account for the newly established company.

As explained in the 1. POA section, after the company is established, there is a second POA process. The client and the Sworn Translator should go to the Turkish Consulate to make a Signature Circular and to give a new POA as an Authorized Representative. The official company documents needed from the Turkish Consulate to make Signature Circular will be provided by the CPA as the company established. The expected fee in Turkish Lira(TL):

 3,500.00-TL (This fee is not fixed and will be calculated and charged from The Turkish Consulate.)

 3,500.00-TL (This fee is not fixed and will be calculated and charged from the Sworn Translator for its services.)

After the Registration;

1. Monthly Payments

There is a minimum fee schedule for Certified Public Accountants in Türkiye. And the Government takes stamp duty for every declaration. So here are the expected monthly payments in Turkish Lira(TL):

 4,500.00-TL +VAT to the CPA

 308.30-TL stamp duty + VAT to The Gov. (if there is a VAT payment)

2. Quarterly Payments

The Quarterly Corporate Income Tax declarations are made in May, August, and November. The Quarterly Stoppage declarations are made quarterly in January, April, July, October.

 480.20-TL stamp duty +The Corporate Income Tax to The Gov.

 365.50-TL stamp duty + Stoppage Tax to The Gov.

3. Yearly Payments Y

early Corporate Income Tax are made in April.

 624.10-TL stamp duty +The Corporate Income Tax to The Gov.

Footnote: Turkish Revenue Administration Invoice Obligations

1. There are 3 main types of invoices;

1.1. Invoice: Could be supplied from printing press.

1.2. Electronic-Archive Invoice: Electronic Invoice System controlled by the Government.

1.3. Electronic-Invoice: Invoice system by an intermediary company named private integrators to Government’s Electronic Invoice system.

2. All B2B (BusinessToBusiness) transactions must be invoiced. B2C (BusinessToCustomer) transactions could be organized as cash register receipt at max 6,900.00-TL VAT included.

3. If the VAT included invoice total is bigger than 6,900.00-TL, the invoice must be in Electronic invoice types.

4. If any company has a “Gross Sales Revenue” bigger than 3,000,000.00-TL, it’s a must to register to Electronic Invoice System.

5. If an Electronic Commerce company (means the company sells only on online), has a “Gross Sales Revenue” bigger than 500,000.00-TL, it’s a must to register to Electronic Invoice System.

Work with us to establish a company in Türkiye!

M. Emin Keskin - CPA