Business in Turkey for Foreign Self-Employed Business Persons in 2022

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Important information for immigrants-to-be. Starting June 12, 2022, Turkey changes the conditions for the citizenship by investment program. The lowest required property value will be 400,000 U.S. dollars. Don’t miss your chance to apply for the Turkish passport under the old rules.

IP in Turkey

Forget about the issues and concerns and focus on your business entirely. In 2022 it will become even easier to register a sole proprietorship and form a company in Turkey for foreign business persons.

Sanctions, political unrest, financial recession, currency fluctuations and other issues do not matter. The Turkish government welcomes all self-employed business persons and foreign companies wishing to launch a business in their jurisdiction.

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The experts of our portal are ready to provide free advice on any matters related to company registration in Turkey and in other countries open to foreign investment as well as offer comprehensive support in setting up a sole proprietorship or any other form of business with the least participation of the owner.

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Who Can Be a Self-Employed Business Person in Turkey?

Turkey is interested in attracting foreign investment. All self-employed business persons are referred to as individual entrepreneurs (Gerçek Kişi Tacir), but can also form one of the available types of business (Law No 6102):

  • joint-stock company (anonim şirket);
  • limited liability company (limited şirket); 
  • limited partnership (komandit şirket);
  • collective company (kollektif şirket);
  • commercial partnership.

Important note. The most popular option with the non-resident sole proprietors in Turkey is a limited liability company where a business person can be the sole founder, shareholder and director at the same time.

Setting Up a Business in Turkey. Rules and Requirements

In order to register a sole proprietorship in Turkey in 2022, you should be familiar with the requirements set by the government of the country. They are identical for foreign investors and residents of the jurisdiction:

  1. Office for the sole proprietor in Turkey. It is a must, but it can be the same address as your place of residence. It can be rented or purchased. The most affordable option is a virtual office in Turkey the cost of which is about 50 to 100 dollars per month. Those who intend to start a larger business should consider setting up a joint-stock company.
  2. Turkish residence permit or a work permit for a self-employed business person is a must only if your business is localized in Turkey.
  3. Work permit for a foreign citizen who has established a business in Turkey. If the owner wishes to stay in their country, they have every right to appoint a Turkish citizen or a foreign national as director. In the latter case, the employee and the employer will have to obtain a work permit. If the shareholder and the business owner are a single person, the foreign owner does not need a work permit.
  4. Minimum size of the authorized capital for an LLC or a sole proprietorship in Turkey is 10,000 TL. The payment is mandatory and has to be deposited in the company’s account within 2 years.
  5. Requirements for a corporate bank account in Turkey in 2022 for legal entities remain unchanged. Any company is obliged to open a bank account in the country. This can be done by the director or manager of the company by submitting the relevant documents and complying with a number of established rules.

Important note. The status of the self-employed business person in Turkey gives foreign nationals the right to  health insurance and making profits. But it is impossible to become a sole proprietor in Turkey without a work permit.

At the same time, sole proprietors cannot obtain a work visa if they are the sole founder and shareholder of the company. Solution? Employ 5 Turkish citizens or appoint a person with Turkish citizenship or a work permit as a shareholder/director.

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Learn about opening a bank account for a non-resident of Turkey in 2022 quickly and remotely.

Quick Guide to Launching a Business in Turkey Remotely

All stages of business registration be that LLC or sole proprietorship by foreign nationals in the Turkish jurisdiction with the support of the experts of our portal can be outlined in several paragraphs:

  1. Contact our experts at info@offshore-pro.info.
  2. Make a contract and transfer part of the prepayment.
  3. Send your documents (upon request).
  4. Issue a power of attorney to our representative in Turkey who will do the following:
  • rent an office for you;
  • obtain your tax number;
  • open your bank account (the founder must be present in person to sign the papers);
  • obtain a license if necessary;
  • draw the documents for the new company within 5 to 15 days depending on the field of activity of the business-to-be and the place of setting up a sole proprietorship.

After that you will become a full-fledged sole proprietor in Turkey and start earning your stable income.

Today, the most popular form of business in Turkey is LLC (limited liability company). It is possible to open a business in Turkey even with a modest capital. You can start with a home office or buy a share in a ready-made business including property investment.

FAQ on Starting a Company and Registering a Sole Proprietorship in Turkey

What is a Sole Proprietorship in Turkey?

Sole proprietorship in Turkey can include opening an LLC with the single founder/shareholder. Non-residents are allowed to register their business in Turkey. 

Is it possible to open a company in Turkey without a Turkish shareholder?

Yes, it is possible. Foreign nationals can be shareholders in a company, but only if they have a work visa or citizenship. One cannot hire themselves and issue an invitation entitling them to work visa in Turkey. In this case it is possible to hire Turkish nationals or to appoint a Turkish citizen as the head of one’s sole proprietorship.

How many shareholders must there be in the business of a sole proprietor?

When opening a limited liability company (sole proprietorship), one shareholder is sufficient.

Is it necessary to be present in Turkey to register a sole proprietorship/limited liability company?

Turning to our experts, you can register a sole proprietorship or a company with full staff, office and corporate documents by the letter of attorney and visit the country only at the final stage to obtain the documents and open a bank account.

Can I count on a residence permit if I get registered in Turkey as a sole proprietor? 

No, registration of a sole proprietorship does not give you the right to a long-term Turkish residence permit.

Why open an account offshore? How can I do it?

You can open a backup account offshore via our portal. This will allow you to keep your capital intact and make settlements with your foreign partners conveniently.

Please feel free to contact our experts to get a complete list of services for doing business in Turkey at info@offshore-pro.info.

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