Turkey Establishing Your Startup
1. Country Overview
Numerous amount of national holidays + religious holidays
Annual Paid Vacation
There are six paid public holidays per year (January 1st, April 23rd, May 1st , May 19th, August 30th, October 29th), plus two paid periods of religious holiday, which comes to eight days in total. Employees are entitled to paid annual vacation for the periods indicated below, provided that they have worked for at least one year including the probation period:
These benefits are the minimum levels set by law and may be increased on the basis of a collective or personal employment contracts.
Company Setup Advantages:
100% foreign shareholders allowed.
Only 2 shareholders required
Equal treatment for domestic and foreign shareholders.
Capital requirement is TL 5,000 < about €2,500>
Directors can be of any nationality.
Automatic membership of the Chamber of Commerce for your company.
No obligation requiring Turkish participation in the management of your company.
In principle, all fields of business, which are open to the Turkish private sector, are also open to foreign participation investments.
They must notify the respective local administration and tax authorities prior to commencing its activities.
The regulations on intellectual property rights have also been revised to increase protection of such rights. Foreign Direct Investments Law provides the comfort that foreign investors cannot be discriminated.
Turkey has wide range of double tax treaty network and all these treaties provide non-discrimination for foreigners regarding with taxation. Foreign Exchange Legislation Turkey has a liberal foreign exchange regime, which allows local-foreign exchange accounts.
Remittance of profits is guaranteed. To enable the transfer of the profit, approved tax statement, tax accrual and payment slips should be submitted to the banks. Provided that appropriate tax liabilities are fulfilled (e.g. withholding tax), fees and royalties within the scope of management agreements, technical services agreements and license contracts can be remitted abroad.
Foreign investment partnerships and funds may invest in Turkish securities and freely remit dividends, interest, profit and capital.
The process of the registration and establishment of a company in Turkey is handled by one ministry, which acts as the coordinator between all authorities and can be completed in one day.
In order to establish a business in Turkey you will need to fill out a Business Registration Form at the local Trade Registry Office located at the local Chamber of Commerce. After you have filled out a Business Registration Form, you will need to submit the following to the trade Registry Office:
The notarized 'Articles of Association'
Deposit of the capital
A completed Company Establishment Form
The company formation process in Turkey is a 6-stage process which is as follows:
More than 3.8 million students in tertiary education
Approximately 600,000 graduates from universities per year
World-class engineering education and students are interested in studying engineering
Number of Students Enrolled in the Fields of Engineering, Manufacturing & Construction (Tertiary Education) – 2011
Number of Graduates in the Fields of Engineering, Manufacturing & Construction (Tertiary Education) – 2011
However, there has been the problem of brain drain from Turkey. In the 1960s, many skilled and educated people emigrated from Turkey, including many doctors and engineers. This emigration wave is believed to have been triggered by political instability, including the 1960 military coup. In later decades, into the 2000s, many Turkish professionals emigrated, and students studying overseas chose to remain abroad, mainly due to better economic opportunities. This brain drain was given national media attention, and in 2000, the government formed a task force to investigate the brain drain problem. The most important reason for not returning or delaying return appears to be the uncertainty created by the February 2001 economic crisis, which has also hit the educated segment of the population. These students fear that they will not be able to find employment upon their return to Turkey and have chosen to stay abroad for a while to acquire some work experience.
Who/Where to Hire
Job websites like kariyer.net, yenibiris.com, secretcv.com, eleman.net
Tech talents working in foreign companies that want a new challenge to take on
Freelancers that have extensive experience and positive feedback from past employers
Go to university job fairs
For lower level, rank and file personnel, job postings on newspaper classified ads referrals from existing employees and contractors
As an employer, be aware and cautious about:
Family occasions and other events that cause leaves - Due to Turks having close-knit extended families, there will be many reasons to attend birthday parties, burials, etc. so plan accordingly and be mindful about the number of allowable leaves. The employees will appreciate your flexibility but be very clear about leave policy.
Understand that with some of them, “yes” actually means “maybe”, and “maybe” might just mean “no”; encourage more communication
While most are fully English literate, some might have comprehension problems; always ask them to repeat what is instructed to them to make sure they fully understand.
Dramatically Uneven Skill & Experience Levels: Given the socio-economic inequality in Turkish society, you will encounter job candidates with a wide spectrum of backgrounds. Be prepared to evaluate individuals with very disparate and diverse qualifications, as well as varying levels of education and work experience.
Where to Incorporate
Startup companies in Turkey tend to incorporate their startups in United States of America, North Africa, Middle East, Balkans and the Turkic Republics (of the former Soviet Union).
Obtaining a Work Permit in Turkey
There are seven types of visas for entry into Turkey: tourist, student, business, work, residence, research and film visas. The work visa cover several situations including investors, offshore banking institutions, and most relevant to the startup industry. The work visa would be the visa type to apply for if you are a foreign national looking into creating a startup in Turkey. The application procedure is presented below:
Applications for work permits can be made inside or outside Turkey: