GSL / Offshore and International Law / Offshore zones / Middle East / Turkey / Review of Turkey

Review of Turkey

Service packages Review Legislation Tax System

Corporate info

Legal system
civil law
Types of entity
Sole proprietorship; Partnership; Limited liability company; Joint-stock company; Commandite company; Cooperative
Shelf companies permitted
No
Incorporation timescale for a new company
2 days
Company suffix
Limited Sirket or LS
Sensitive words
Turkey, Turkish
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
No
Information to be kept at the registered office
legal and accounting books
Seal required, type of seal
not required
Redomiciliation (to, from) permitted
permitted
Your Consultant
Alexander Alekseev

Managing Partner of GSL Law & Consulting

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
Yes
Directors’ meetings/frequency/location
No requirements
Disclosure to local agent
No
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / annually / no requirements
Disclosure to local agent
No
Disclosure to public
Yes
Beneficiary info disclosure to
Yes

Shares and share capital

Minimum authorized share capital
10000
Minimum issued share capital
10000
Minimum paid share capital
2500
Authorized capital payment deadlines
25% before registration, the rest 75% - within 24 months
Issued capital payment deadlines
25% before registration, the rest 75% - within 24 months
Standard currency
Turkish lira
Standard authorized share capital
10000
Standard par value of shares
25
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
15-40%
Min. rate for corporate tax
20%
Corporate tax (in detail)
The standard income tax rate is 20% (it has been increased to 22% for the period 2018-2020)
Capital gains tax
Regular rate
Capital gains tax. Details
Capital gains derived by a company are generally taxable as ordinary income
VAT
18%
VAT. Details
The standard VAT rate is 18%. Reduced rates of 8% and 1% apply to some goods and services
Withholding tax
15%/20%/0-18%
Other taxes
Social contributions, Inheritance and gift tax, Property tax
Exchange control
No
Government fee
Yes
Stamp duty
from 0.189% to 0.948%

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
No
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
No
Audit required
No

General information shortly

Location
Southwestern Asia and Southeastern Europe
Total area
783.562 sq. km
Population
76.667.864 (2013)
Capital
Ankara
National currency
Turkish lira
Conditional reduction of currency
TRY
Against USD
2.06
Climate, average max and min t°
Temperate; hot, dry summers with mild, wet winters; harsher in interior; avg. maximum temperature (July) +35°; avg. minimum temperature (January) +5°
Time difference from Moscow
- 1 hour
Dialing code
+90
State language
Turkish
Ethnic groups
Turks 70%, Kurds 18%, and others
Literacy rate
88.7%
History
Turkey has been inhabited since the Paleolithic, including various Ancient Anatolian civilizations and ancient Thracians. The remnants of Bronze Age civilizations such as the Hattians, provide examples of the lives of its citizens and their trade. After the fall of the Hittites, new states such as Phrygia and Lydia appeared on the western coast as Greek civilization began to flourish. The growing Persian kingdom eventually absorbed them. Following the Persian invasion, its expansionism brought it into conflict with the Greek monarch Alexander the Great who successfully expelled the Persians. Although he brought an end to the Persian Empire, his reign was short and his empire broke up on his death. Most of Anatolia eventually fell under the Seleucid Empire, the largest of Alexander's territories, but they were driven back by the Romans by 191 BC. In the 4th century, during the reign of Constantine the Great, at the east part of the Roman empire was established a new capital at Constantinople. Parting from the West empire, the Byzantine Empire succeeded it to flourish for almost a thousand years. Oghuz Turks began migrating into Anatolia in the context of the larger Turkic expansion, forming the Seljuq Empire in the 11th century AD. After the Seljuq victory over forces of the Byzantine Empire in 1071, the process was accelerated. The Seljuq dynasty controlled Turkey until the country was invaded by the Mongols. During the years when the country was under Mongol rule, some small Turkish states were born. One of these states was the Ottoman beylik which quickly controlled Western Anatolia and conquered much of Rumelia. After finally conquering Istanbul, the Ottoman state would become a large empire. Next, the Empire expanded to Eastern Anatolia, the Caucasus, the Middle East, Central Europe and North Africa. Although the Ottoman Empire's power and prestige peaked in the 16th century; it did not fully reach the technological advance in military capabilities of the Western powers in the 19th century. Following World War I in which Turkey was defeated, most of Anatolia and Eastern Thrace was occupied by the Allied powers. In order to resist the occupation, a cadre of young military officers formed a government in Ankara. The elected leader of the Ankara Government, Mustafa Kemal organized a successful war of independence against the Allied powers. After the liberation of Anatolia and East Thrace, the Republic of Turkey was established in 1923 with its capital at Ankara. In 1932 Turkey joined the League of Nations and in 1952 joined NATO.
Credit rating
BB
Government type
Parliamentary democracy
Executive branch
Prime Minister and the Council of Ministers
Legislative branch
the Grand National Assembly of Turkey (550 members)
Judicial branch
Constitutional Court, Supreme Court, High Court of Appeals, Council of State, High Counting Chamber, High military court of appeal, High military administrative court; courts of second instance: Principal court of criminal offence of special importance, Principal court of ordinary criminal offence, Principal Civil Court; courts of first instance: Magistrate Court divided into criminal and civil courts
Unemployment
10.7% (2013)
GDP per capita rank
65 (2013)
Corruption perceptions index rank
53 (2013)

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