Expand Business in Turkey

Global Upside assist you to expand business in Spain 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 to help 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 this process and lifts the compliance burden for 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.

Capital City

Ankara

Currency

Turkish Lira (₺)

Language

Turkish

Government

Presidential Republic

Country Overview

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. According to data, Turkey:

  • Ranks as the 18th largest economy in the world in terms of GDP
  • Ranks as the 8th largest economy in Europe in terms of GDP
  • Is the 15th largest automotive manufacturer in the world
  • Ranks as one of the top producers for electronics and home appliances

Covid-19 Update

The Turkish government went ahead with a lockdown which restricted movement for all its residents except the essential workers. Foreign travel and social distancing have been restricted strictly and residents below the age of 20 and above 65 years have been asked to remain indoors. In addition to this, the government has also implemented financial aid for the workers who were forced to take unpaid leaves amidst the outbreak of novel coronavirus pandemic. Within all these, Global Upside is diligently working to advise its clients on how to keep the employees and grow the business productively.

Legal Entity Setup

There are various options for structuring your business entity in Turkey:

Joint Stock Company (JSC)

A joint-stock company (JSC) has minimum capital required is ₺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.

Limited Liability Company

To establish a limited liability company (LLC), there is a minimum capital requirement of ₺10,000 and shareholder requirement of between 1 and 50 shareholders. This type of entity may be a good option for small and mid-sized businesses.

General Partnership / Commandite Company

A general partnership/commandite company is a type in which partners/commanditers are registered and the liabilities shared are limited. There is no minimum capital required and the obligations are not the same for all the partners.

Limited Partnership/ Collective Company

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.

Cooperative Company

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.

Branch Office

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.

Human Resources

In Turkey, the employer must determine the specific type of employment contract the employee will be hired under. The types of employment contracts are as follows:

  • Permanent or temporary
  • Definite or indefinite
  • Full-time or part-time
  • Option to work-upon-call
  • Probationary term
  • Team contract

With reference to the employment law of Turkey, the following information must be included on all employment contracts:

  • Employer and employee details
  • Work clauses
  • Duty hours
  • Salary and relevant details­

Payroll

Turkish employers must pay employee wages once a month. Employers must also provide the employee with a payslip with the payment details.

Accounting

Accounting standards in Turkey, known as the Turkish Financial Reporting Standards (TFRS), are in conformity with the International Financial Reporting Standards (IFRS).

Taxation

Corporate Tax

The income tax rate here is 22%.

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.

Data Privacy/ GDPR

The data protection act in Turkey is known as the Law of Protection of Personal Data No. 6698 (LPPD) and 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

For individuals:

  • Imprisonment for 4 to 12 years
  • Termination from employment

For legal entities:

  • 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.