Foreign Investment in Turkey
Recent forum posts
Good afternoon to Everyone.We are Irish company, that currently seeking to enter UAE market with our premium quality meat products such as Lamb & Mutton. Our meat products are certified and accredited. We also have Halal certificate, inc Health certificate etc.We would be very glad if anyone could advice on how to enter UAE market.Thank you in advance.
Total Posts: 2 Last post by ofreshh
Hello,We are company from Poland. We have a big distribution of PVC systems - We looking for sales agent in Dubai or company with marketing solution.We will entry with our products to UAEOUR PRODUCTS : Lift and slide door (HST)Lift & slide door 85 mmSliding windows systemsPVC window systemsCustom window systemsLift and slide door (HST)Sliding windows systemsPVC entrance doors
Total Posts: 2 Last post by ofreshh
Turkey Business and Investment
Investing in Turkey has become appealing and profitable for foreign investors due to a constantly improving foreign investment climate by way of various government backed policies, including
- Tax and non-tax incentives
- Most competitive 20% corporate income tax rate in the OECD
- Double taxation treaties with more than 70 countries
- Generally applied 18% VAT rate with some products/services falling under 1% and 8% rates
- Customs Union with the EU and Free Trade Agreements with 16 countries
- Bilateral investment treaties with 82 countries, including Russia, Ukraine, Uzbekistan, Kazakhstan etc.
Many Tax and non-tax incentives for foreign investors
Tax incentives: customs, VAT and corporate income tax (total or partial) exemptions depending on the region, zone and industry of operation,
Non-tax incentives: allocation of free land and subsidies for energy in certain priority regions; help for R&D and market research; up to 80% grant on social security payments of the employer.
Turkey has invested a lot of time and money to attract Foreign Direct Investment and have implemented many business initiatives to create a welcoming environment for inward industrial investment, including “Organized Industrial Zones” and “Free Trade Zones” throughout the country
Simple Ways to establish your business in Turkey
Local Turkish Subsidiary
Foreign companies may choose to set up 100%-owned subsidiaries in Turkey either in the form of a joint stock company (AS) or a limited liability company (Ltd Sti). Such subsidiaries are treated in the same way as the resident companies.
Subsidiaries may be in the form of a joint venture with a Turkish or international partner. There is no requirement for a local shareholding or directorship for establishing a subsidiary.
Foreign companies can establish a branch in Turkey. The parent company is required to allocate capital to the branch office at the establishment phase, although there is no minimum capital amount required. Branches are established according to the provisions of the Turkish Commercial Code with the approval from the Ministry of Industry and Trade.
Representative offices of foreign companies are not permitted to perform any commercial activity in Turkey. Their activities are limited to representation of a foreign company in Turkey and providing information. Expenses of the representative office must be financed by the head office abroad.
The representative office may not generate any income from its activities in Turkey, just as it is not itself subject to corporate income tax or personal income tax. However, it should maintain statutory books and provide any necessary information to the authorities when required. Employees of a representative office are not subject to income tax either, provided that their salaries are paid from abroad in foreign currency.
Content supplied by www.kilicandpartners.com
Organisations that can assist with Foreign Investment
OZBEK CPA is an independent certified public accounting and consulting firm founded in 2002 and based in Istanbul, Turkey. We specialize in providing a wide range of services to small, medium and large sized companies looking to strengthen and expand their presence in Turkey.