Turkey offers a natural gateway to three of the world’s largest and most dynamic markets: Europe, Asia and the Middle East. No wonder its economy is booming, up 34% over the four years to 2005, and still growing more than 5% per annum.

Turkish company key features

  • The minimum share capital for a limited liability company is between 5,000 and 10,000 TL (US 3,200 – US6,400). However the recommended amount is 50,000 TL for non-Turkish Directors.
  • At least 25% of the authorized share capital must be paid up after the company is established.
  • Minimum of one shareholder required.
  • Minimum of one director required (may be either Turkish or Foreign)
  • For non-Turkish clients who need a Work Permit the minimum requirement will be a physical office, as you will have to employ local staff.
  • To apply for a work permit you should aim to employ at least 5 – 8 local Turkish staff.
  • A local Accountant must be appointed before company registration is complete. We can provide one.

  • Popular Turkish company applications

    Turkish companies are best used for general trading purposes, especially for those aiming to enter the Middle East and Golf countries markets.

    Turkish company taxation

  • CORPORATE INCOME TAX (CIT): The standard rate is 20%
  • INCOMING DIVIDENDS: 0% if Participation Exemption applies:
    - the foreign company paying out dividends is a limited liability company;
    - the Turkish company holds at least 10% of share capital for at least 12 months;
    - the subsidiary company is subject to corporate income tax rate of at least 15% (for trading company) or 20% (for investment company);.
  • CAPITAL GAINS TAX (CGT) - Participation Exemption applies to 75% of Capital Gains, if the conditions are met.
    ROYALTIES: 15% which can be reduced under a Tax Treaty.
    DIVIDENDS: 15% which can be reduced under a Tax Treaty.
    INTERESTS: 0% if the entity is a Financing Company. Companies that do not qualify as financing pay 10% withholding tax on paid out interest.
  • VALUE ADDED TAX (VAT). Standard rate for inland sales is 18%.

  • How to register a company in Turkey?

    1. Choose a structure, what is appropriate for your business. Need help? Contact us.
    2. To find out more, please contact us.