There are three main types of businesses in Turkey, sole proprietorship, limited liability company (LLC), incorporated company (INC).
In Turkish these are known as:
- Sahsi Sirketi – Sole proprietorship / Individual company
- Limited Sirketi – Limited liability company (LLC)
- Anonim Sirketi – Incorporated company (INC)
What are the main differences between the three?
One of the main differences is the tax rates. For sole proprietorship companies the tax rates are based on a ladder system depending on the revenue whereas for limited and incorporated companies there is a flat tax rate which doesn’t change.
Tax Rate for Sole Proprietorship Company
15% – upto 24,000 TL
20% – 24,000 TL to 53,000 TL
27% – 53,000 TL to 130,000 TL
35% – 130,000 TL to 650,000 TL
40% – over 650,000 TL
Tax Rate for Limited Company & Incorporated Company
23% – flat rate for 2022
25% – flat rate for 2024
How do I know which type of company to go with?
Sole Proprietorship
If you are just starting out and are not sure how much revenue you will bring in, and just want the most basic starting option, then you should go with sole proprietorship. This is the easiest and quickest to open and close.
Limited Company
If you have multiple partners, know approximately your revenue for the year, have a mid to large operation in mind, then better to save time and start with this option. Minimum capital required is 10,000 TL. These figures are subject to change every year, please enquire for latest figures.
Incorporated Company
If you are planning to go international and make your company public in the future, then you should go with this option. Minimum capital required is 50,000 TL. These figures are subject to change every year, please enquire for latest figures.
What documents do I need to get started?
All we need is the following to get started:
- 2 notarized translated copies of your passport
- 2 biometric passport photos
What is the rough road map for company establishment?
 Here is an outline of the steps we will take to get your company established and running:
- Partners’ passport translation and notarization
- Obtaining tax id number for the partners
- Getting Power of Attorney from the partners for company formation before the Notary Public
- Determining and reserving the company title
- Signing a lease contract for the company address
- Preparing online company establishment procedures
- Filing company details at Istanbul Chamber of Commerce online
- Filing company Articles of Incorporation online and getting it approved
- Filing all the documents at Istanbul Chamber of Commerce and pay official company registration fees
- Obtaining company registration certificate from Istanbul Chamber of Commerce
- Getting signature circular notarized at Notary Public
- Opening company bank account
If you have any questions, don’t hesitate to send me a message on +90 536 956 5130 or email me at moaz@thinkturkey.co
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