Expand Business in Turkey
Global Upside helps businesses expand into Turkey by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Turkish laws and regulations.
The hiring and incorporation processes in Turkey are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Turkey. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Turkey, located at the junction of southeastern Europe and western Asia, has a population of 80 million. The country is well-suited for foreign businesses with numerous measures having been introduced by the government to promote investment in Turkey.
Over the last two decades, there has been significant social and economic growth in Turkey. The country has also seen greater political stability, reducing the economic and social volatility that affected the country in the past.
- Turkey ranks as the 18th largest economy in the world in terms of GDP
- Turkey ranks as the 8th largest economy in Europe in terms of GDP
- Turkey is the 15th largest automotive manufacturer in the world
- Turkey ranks as one of the top producers of electronics and home appliances
A joint-stock company (JSC) has a minimum capital requirement of ₺50,000. The shares are divided amongst the stockholders. A JSC is a good option for large-scale foreign investors interested in incorporating in Turkey.
To establish a limited liability company (LLC), there is a minimum capital requirement of ₺10,000 and a shareholder requirement of between 1 and 50 shareholders. This type of entity may be a good option for small and mid-sized businesses.
A general partnership/commandite company is a type of entity in which partners/commanditers are registered and the liabilities shared are limited. There is no minimum capital required.
A limited partnership/collective company is a type of establishment that has no minimum capital requirement. The capital contribution by the partners determines how the liabilities are shared. This type of entity can be associated with profit-oriented activities.
A cooperative company in a type of entity that permits individuals and organizations to form commercial enterprises. There is no constraint to the number of shareholders and no capital requirement.
A branch office is an establishment that remains under the parent company but operates as a dependent commercial enterprise. Different financial systems and banks work with branch offices.
On average, it takes at least three weeks to incorporate a legal establishment in Turkey.
In Turkey, the employer must determine the specific type of employment contract the employee will be hired under. The types of employment contracts are:
- Permanent or temporary
- Definite or indefinite
- Full-time or part-time
- Option to work-upon-call
- Probationary term
- Team contract
With reference to Turkish employment law, the following information must be included on all employment contracts:
- Employer and employee details
- Work clauses
- Duty hours
- Salary and benefits details
Accounting standards in Turkey, known as the Turkish Financial Reporting Standards (TFRS), are in conformity with the International Financial Reporting Standards (IFRS).
The tax rate in Turkey is 22%.
Value Added Tax (VAT)
VAT in Turkey (‘Katma Deger Vergisi’ (KDV)) is 18%. A reduced rate of 9% is placed on certain items such as food, medical devices, etc.
The data protection act in Turkey is known as the Law of Protection of Personal Data No. 6698 (LPPD). It states that every individual has the right to request protection of their personal details and data.
Anti-Bribery & Anti-Corruption Law
There is no specific anti-bribery or anti-corruption law in Turkey. However, the Turkish Criminal Code (TCC) does provide legal guidelines for these issues. Other laws include the Law on the Ethics Board for Public Officials, the Civil Servants Ethical Principles and Application Procedures and Principles (also called the Ethics Regulation), and the Law on Combating Bribery and Corruption and Declaration of Property.
Article 252 of the TCC No. 5237 regulates the bribery of public officials.
Bribery of Public Officials
- Imprisonment for 4 to 12 years
- Termination from employment
- Cancellation of license
- Confiscation of bribed goods
- Administrative penalties
Similar to the bribery of public officials, private individuals also face penalties for getting involved in bribery.
Bribery of Private Officials
Heavy administrative penalties for both individuals and legal enterprises.