If you hail from Russia, opening a company in Turkey might be the best way to boost your profitability. Currently, the western nations have imposed various types of sanctions on Russia. Therefore, it is not a good time to expand your business in Russia.
Entrepreneurs prefer Turkey because of its advantageous geographical location, tax incentives, and developed economy. Numerous foreign investors encounter difficulties while setting up their respective organisations in Turkey.
Therefore, when opening a business in Turkey, investors should consider the specific requirements of each company type. Establishing a new business in Turkey is made simpler by government initiatives. Here are some essential aspects for Russians to know while opening a company in Turkey.
Why should you Establish your Business in Turkey?
Turkey has long been popular as a tourist destination. And recently, it has emerged as one of the go-to destinations for foreign investors. Here are some reasons for Russians to establish their start-up in Turkey.
- The strategic location of Turkey attracts numerous foreign entrepreneurs
- The country offers a wide variety of incentives to the foreign investors
- It has a skilled and competent labour force
- It has a highly developed economy
With good business opportunities in Turkey, you can optimise your firm’s profit margin. However, entrepreneurs should know about the rules of establishing a business in Turkey.
The Key Aspects of Company Establishment in Turkey
Here are the key aspects of forming a company in Turkey.
The Types of Business Entities
Russians should be aware of the types of business entities in Turkey. Some of the common business entities of Turkey are:
- Joint Stock Companies
- Limited Liability Companies
- Sole Proprietorships
Navigating the Administrative and Legal Processes
Company registration in Turkey requires you to comply with the legal and administrative processes. For instance, the process includes obtaining necessary permits and licenses. You should also register your company with the relevant government agencies. Your company should also obtain the tax identification numbers.
Complying with the Labour Laws
It is necessary to comply with the Turkish labour laws, which include rules on employment contracts. The labour laws in Turkey aim to correct the imbalance of power between workers and employers. As a Russian entrepreneur, you should be aware of the Turkish Labour Law, numbered 4857. This law states the obligations of employers and employees working under the contract.
A Brief Roadmap to Open Business in Turkey for Russians
- Passport translation of the partners and notarisation
- Determining and reserving the company title
- Preparing online company establishment procedures
- Filing the details of your company online at the Istanbul Chamber of Commerce
- Obtaining the company registration certificate from the Istanbul Chamber of Commerce
- Opening the bank account of your organisation
Establishing an agency in Turkey can be time-consuming and complex. Therefore, it is highly recommended to opt for professional and legal services. For proper foreign investment in Turkey, you should be aware of the Turkish company formation rules. Russians can find it a bit tough to establish a start-up in Turkey. Therefore, they need the right support and preparation to launch a business.