Published: 18.06.2018 blog
Form of government:Parliamentary-presidential republic
Area:783 562 км2
Currency:Turkish Lira (TRY)
The main part of the territory of the Republic of Turkey (just over 783 thousand km2) is located in Asia and only 3% - in Europe. The population is about 73 million people, mainly Turks (up to 75%), as well as 18% of Kurds and about 7% of other ethnic groups, mostly Muslims.
The capital of the state is Ankara. In Turkey, the system of administrative division into 81 provinces (“il” or “vilayet”) under the control of governors appointed by the government is adopted. “Il” is divided into districts, some of them also into “volost”.
Historically, Turkey was located at the intersection of key trade routes between Europe and Asia. Today, the country is popular with business representatives, as it provides the opportunity to use a range of tax benefits. Due to the coherent work of the state apparatus and the maximum simplicity of administrative procedures, obtaining the necessary license, certificate or permit will not be difficult.
Calculations are made in the national currency - Turkish Lira (TRY). The main segment of business is tourism and related services, including restaurants and hotels. The service sector in general occupies more than 65% in the structure of the economy.
The company AS may have the sole shareholder (natural person/legal entity). The liability of shareholders is limited to subscribed capital. There may be only one member (also a natural person/legal entity) in the Board of Directors. However, he does not have the right to act as a real shareholder of the company. Conducting general meetings and meetings of the Board of Directors is a mandatory requirement.
Only one director to manage LS is enough. His residence does not matter, but a foreign citizen will need a work permit (or a working visa) and a residence permit. Minimum 2 shareholders will be required, also of any residence. The corresponding data is entered into an open register.
Any company registered in Turkey is a full-fledged Turkish enterprise, regardless of the nationality of its founders.
The attractiveness of Turkey for investors was partly influenced by a stable political situation. In addition, work in Turkey is accompanied by a reduced level of economic risks and stability for the company. One of the measures to stimulate entrepreneurship development are special investment regions, in particular, it is possible to set up business in the following areas:
- Technological Development (ZTR). They are organized in different cities, there are about 30 of them at the moment, but a few more are planned to be opened. An example of such an area is Antalya, where research is supported and investment in the development of high technologies is encouraged.
- Organized Industrial (IPF). They are grouped according to industry criteria, including small and medium-sized companies that work in a certain area and benefit from tax, lending, and energy prices. There are 148 such zones today.
- Free. They are located in Turkey, but outside of the customs zone. They are created to attract investments in the field of exports, mainly near the ports. Administrative norms may not be applied in the territory of free zones or work only partially. There are 19 zones of such type now.
Double taxation agreements have been signed with 40 countries.
Annual reporting and audit
Companies are obliged to prepare annual reports, it is also mandatory to register the financial report and its audit.
Currency control is provided in Turkey.