ERDEM UGUR

Establishing a Company in Turkey?

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Establishing a Company in Turkey?
ERDEM UĞUR

Establishing a Company in Turkey?

Turkey, a rapidly growing economy, skilled labor force, not only global and regional investment potential in Turkey by foreign investors is one of the preferred countries. With the ‘Foreign Direct Investment Law edil adopted in 2003, the number of foreign investments and established companies increased. The main reason is that the new regulation is the removal of foreign obstacles to make direct investments in Turkey (to be explained later in the summer what it means direct investment). Thus, foreign investors were granted the same rights and opportunities as domestic investors and were allowed to establish all types of companies permitted by the Turkish Commercial Code (TCC). It should be noted that Turkish citizens living or working abroad can also benefit from the opportunities provided by this Law. So, this article is not only foreigners who want to invest in Turkey, Turks abroad are also closely.

 

What are the conveniences brought to foreigners?

Of foreigners, to establish a company in Turkey to open a branch, investing, obligations such as the introduction of foreign capital in Turkey in the capital increase in available shares or transferred to want to become Prime Minister without the necessary preliminary permit with the US dollar at least 50,000 per foreign partner holds have been removed.

With the new regulation, foreigners are not only limited to joint stock and limited companies, but also to establish all kinds of companies that do not have legal personality (such as ordinary company). The conditions stipulated in the old law, such as the fact that the foreign enterprise is beneficial for the economic development of the country, working in an activity area open to Turkish private enterprises and not having a majority share in the activities that will constitute a monopoly, are now abolished.

Foreign investors, the profits from the operations in Turkey, dividends, sales, liquidation and compensation, licensing, management, and similar agreements with foreign loans to be paid in exchange for sums will be able to freely transfer the principal and interest payments abroad.

They will be able to employ foreign personnel in the company or branch and liaison offices to be established.

In addition, foreigners who want to invest in Turkey where the government is providing tax breaks, investment allocation, insurance premiums, shall be eligible for incentives such as support for employer share. Turkey, with tax agreements it has made with foreign countries aims at avoiding the double taxation of investors. double taxation avoidance agreement dated 2011 between Germany and Turkey are available.