Free work in the Turkish market attracts a large number of foreign entrepreneurs. And favorable conditions for investors become an additional incentive to open a company in Turkey. Before registering a company, it is necessary to think over the idea and organizational structure. There are many options for managing legal entities in the country, which provide tax breaks with a variety of government assistance.
Features of jurisdiction
The advantages of doing international affairs through the republic form a long list:
- transcontinental geographic position;
- gradual integration into the EU;
- close ties with most of the CIS countries;
- stable economic situation;
- low and predictable inflation rate;
- no distinction between Turks and non-residents;
- the authorities’ interest in injecting money from abroad;
- a wide range of government programs to support small businesses;
- no bureaucratic delays;
- the opportunity to make profitable investments in the tourism industry;
- developed industry;
- availability of free niches for organizing your own business;
- attractive real estate prices;
- loyal fiscal system.
Procedure and its subtleties
Opening a company in Turkey for a Russian citizen can follow the same scheme as for another foreigner or resident. But this fact does not simplify the procedure itself, which is accompanied by a lot of complications, namely, the need:
- hire an accountant even before it is possible to register a company;
- to study all the nuances of the registration process, for which it is urgently necessary to have a tolerable command of the Turkish language (information not first-hand is devoid of accuracy);
- collect a package of papers while still at home.
The last point is very important since a citizen of the Russian Federation will have to prepare:
- signature samples;
- translation of an identity card of a foreign sample;
- charter and its copy;
- statement;
- a certificate of no criminal record and more.
All papers must be translated and certified by a local notary. For those planning to open a company in Turkey, there is a proven procedure:
- choice of a notary;
- payment for the services of a sworn translator;
- certification of documentation.
After all of the above, you will need:
- contribute the authorized capital;
- hand over papers to the Chamber of Commerce;
- declare yourself in the regulatory authorities.
It is theoretically possible to open a company in 2-3 weeks, but without professionals, this period is often extended over several months.
Benefits of starting a business in Turkey
Turkey, one of the fastest-growing economies in the world, is one of the best places to expand your business. With a thriving economy, geopolitical location, promising growth opportunities, a hard-working business community, and a young population, the country is attracting foreign investors from all over the world.
There are many advantages for foreign investors who are planning to start a business in Turkey. Turkey is an interesting market because it is strategically positioned as a trade center for Europe and the Middle East. Besides, the country presents a unique opportunity for foreign investors with high investment potential in the future, with the continued support of the Turkish government.
Low running costs
One of the benefits you get from starting a business in Turkey is low operating costs. While it will cost you a fortune to set up a business in another country like the UK or the US, Turkey is a great chance. Every year, about a million students graduate from a university in Turkey, and then many of them start looking for work instead of starting their own business. Because of this, the cost of starting wages and labor is relatively low. Besides, the cost for suppliers is also relatively low, although the quality of goods and services remains high. This is a great benefit as you no longer need to worry about the upfront costs of your business.
High consumer spending
Another advantage of the young population of Turkey is the volume of their expenses. Young people love to follow the trends of their favorite brands and they enjoy spending money without thinking. With the right business plan and marketing strategy, you can start a successful business in Turkey according to the needs of the young population. By following the latest trends and applying them to your business, you can easily attract young consumers to Turkey.
Local producers
In business life, it makes sense to place manufacturers close to where you start your business. Many local manufacturers in Turkey are ready to help and support investors. If you have an idea and want to implement it with a local manufacturer, they will be ready to help you. Local manufacturers are also more open to minimum orders than large suppliers. This is a great advantage for an investor starting a business in Turkey.
Incentives provided by the Turkish government
The Turkish government encourages both local and foreign investors by reducing investment-related costs and creating a more investor-friendly environment. Thanks to the new investment incentive system, they have reduced investor spending. Foreign investors who have received the Investment Incentive Certificate (IIC) are granted the following benefits: VAT and customs exemption, tax deduction, social security contribution support, interest rate support, land allocation, VAT refund, and income tax withholding support.
Turkish citizenship
Last but not least, from 2017, foreign investors can obtain Turkish citizenship and its cumulative benefits by starting a business in Turkey. The right to obtain Turkish citizenship has been recognized for foreign citizens who invest more than a certain amount and create jobs or keep a deposit. If you make capital investments of at least $ 500,000, or create jobs for at least 50 people, or buy real estate worth $ 250,000, or keep a deposit of at least $ 500,000 in banks operating in Turkey for at least 3 years, or buy state property debt securities for at least $ 500 thousand, provided that they are kept for 3 years, you can obtain Turkish citizenship.
