Foreign investors are anonymous in Turkey and have the possibility of setting up the limited liability company name. Ordinary companies such as sole proprietorships with no institutional structure easy to install and low-cost advantages because they Although even some foreign investment in Turkey is the most preferred type of limited liability and joint-stock companies.
Establishing a Business in Turkey
When establishing a company, the title, center, manager, and capital structure of the company should be determined. Then, notary certified company documents should be recorded in the central registry system and applied to the trade registry office. In documents prepared outside Turkey, it must be approved by a notary or consulate. In addition, potential tax numbers should be obtained for company partners who are not Turkish citizens.
However, foreign companies may open branch or liaison office in Turkey. These branches do not have capital debt in the establishment phase, but this branch also needs to be registered with the trade registry office.
Finally, it is worth mentioning: Foreign investors prefer to take over the ready-made companies in order not to deal with such foundation business.
What is Taxation for Foreign Investors?
Corporation tax for limited liability and joint-stock companies in Turkey is 20%. In addition, individuals are obliged to pay income tax on their earnings during the year. The personal income rate is between 15% and 35%.
Turkey, as well as foreign investors and their home countries party to the agreement to prevent double payment of taxes in Turkey, is a country. This is the number of countries party to the agreement and investing in Turkey is becoming increasingly easier. In addition, tax exemptions are offered to foreign investors by the government in various periods.
Can Foreign Investors Get Turkish Citizenship?
Investing in Turkey with the regulations introduced on January 12, 2017, foreign nationals may have the right to Turkish citizenship. Accordingly, the company has invested over a certain amount or create jobs in Turkey and Turkish citizenship to foreigners who were granted the right to keep the deposit.
Foreign investors can gain Turkish citizenship if they meet the following conditions.
- Investing at least $ 500,000 in US capital,
- Purchase of immovable property for at least $ 250,000 USD,
- To create employment for at least 50 people,
- At least $ 500,000 in deposits, US dollar amounts in banks operating in Turkey keep at least 3 years,
Foreign investors who meet any of these conditions can gain Turkish citizenship with the proposal of the relevant ministry and the decision of the Council of Ministers.