Market Entry Guide-Turkey 0

Market entry Guide
TURKEY
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2
2.1
2.2
2.3
2.4
2.5
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3.1
3.2
3.3
3.4
3.5
3.6
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4.1
4.2
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5.1
5.2
5.3
5.4
5.5
6
6.1
6.2
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7.1
7.2
7.3
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8.1
8.2
8.3
8.4
8.5
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Introduction
Modes of Setting up a Business in Turkey
Incorporated Companies
An Office of Foreign Entity
Unincorporated Company
Reforms in the FDI law
Average Time Required for Setting up a Business
Procedures for Immigration
Visa Policy of Turkey
Procedure for Obtaining Residence Permit
Procedures for Work Permit
Work permit for a person Other than Key Personnel
Average Living Costs for Expatriates
Average Rent for Office Space in Turkey
Social Security System in Turkey
Overview
Social Security Schemes in Turkey
Special Investment Zones in Turkey
Introduction
Technology Development Zones Techno parks
Organized Industrial Zones (OIZs)
Industrial Zones
Free Zones
Overview of Banking Sector
Introduction
Procedure for Opening a Bank Account
Recruitment of Local Staff
Major Recruitment Agencies and Websites
Brief Overview of Labour Laws
Average Salary Range
Taxation
Tax System in Turkey
Tax Rates
Tax Incentives
Investment Incentive System or Tax Incentives
Double Tax Treaty
Appendix
Appendix I: Useful Links and Addresses
Disclaimer
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1 Introduction
Turkey is a democratic nation with a total population of 74,72 million as of 31 December 2011. About 75 percent of the population
lives in district centres and provinces.1 In 2010, the countrys GDP
was at EUR 528,37 billion (USD 736 billion) and GDP per capita
was at EUR 7,236 (USD 10,079). The countrys exports and imports
value are EUR 81,84 billion (USD 114 billion) and EUR 132,811 billion
(USD 185 billion) respectively. The countrys major export partners
are Germany (10,1 percent); UK (6,3 percent); Italy (5,7 percent);
Iraq (5,3 percent); France (5,3 percent). Its major import partners
include Russia (11,6 percent); Germany (9,5 percent); China (9,3
percent); USA (6,6 percent); Italy (5,5 percent). The countrys Trade
Agreements includes Customs Union Agreement with the European Union (EU) Free Trade Agreements with Albania, Bosnia
Herzegovina, Chile, Croatia, EFTA member countries (Switzerland,
Norway, Iceland and Liechtenstein), Egypt, Georgia, Israel, Jordan,
Macedonia, Montenegro, Morocco, Palestine, Serbia, Syria, and
Tunisia.2
Turkey remains dependent on FDI. The country reformed its
FDI laws in 2003 and streamlined the processes for setting up
a new business by removing administrative bottlenecks. Now,
it is a country with best practices for setting up a business.3
The net international direct investment inflow has been EUR
4.491,90 million (USD 6.257 million) in 2010. The net international
direct investment inflow has been EUR 451,556 million (USD 629
million) in November 2010.4
Turkish Statistical Institute - Facts and Figures 2011 - December 2011

Invest in Turkey
Istanbul 2009 -Turkish Business Environment August 2009
4
Prime Ministry Under-secretariat of Treasury International Direct Investment Bulletin January 2011
1
2
3
The countrys new research and development (R&D) law, effective from 1 April 2008, encourages foreign investment by providing tax incentives, exempting all R&D expenditure from being
taxed. According to the law, also R&D personnel become eligible
for an 80 percent deduction on their income tax.5
Managing Intellectual Property Article: Turkey: R&D law good news for overseas
companies June 2008
2 Modes of Setting up a Business in Turkey

This section discusses the common investment vehicles available
to foreign investors; the procedures to be followed in order to
establish them and the related regulations for each investment
mode.
Table 1 lists the most common modes of setting up business
entities in Turkey by foreign investors and the legal particularities involved in each process.
Table 1: Different Modes of Setting up Business in Turkey
Modes of setting up A business
Incorporated companies
Merchant/Single proprietorship
Commercial partnership
(Joint stock company, limited
company, collective company,
commandite company)
Co-operative association
An office of a foreign entity
Liaison office
Branch office
Unincorporated companies
Joint venture
Istanbul Chamber of Commerce Company Establishment and Registration

Procedures in Turkey 2007;
Turkish Embassy London Setting up a company
2.1 Incorporated Companies

Turkey has a highly business-friendly environment. The registration and establishment of a company can be done within one
day in Turkey.
2.1.1 Different Types of Companies6

| Merchant/Single proprietorship
The person who is running the commercial establishment individually is accepted as a firm.
| Commercial partnership7
Joint Stock Company: the share capital of a Joint Stock Company is divided into shares. The liability of the shareholders is
limited to the capital subscribed and paid by them.
- The following is a list of essentials for a joint stock company
in Turkey:
The minimum number of shareholders required to set up a joint
stock company is five. These can include real and legal persons.
The minimum capital required for a joint stock company is
EUR 21.500 (YTL 50,000).
Company organs including the general assembly, the board
of directors and the supervisory board should be present in
a joint stock company.
Limited Company: the liability of the shareholders in a limited
company is limited to the capital, subscribed by the shareholder.
- The following is a list of essentials for setting up a limited
company:
There must be a minimum of 2 legal or real persons up to a
maximum of 50 in a limited company.
The minimum capital required to set up a limited company
is EUR 2.150 (YTL 5,000).
No stock certificate is required to be issued by the limited
company.
Procedures in Turkey 2007
Republic of Treasury Prime Ministry Under-secretariat of Turkey - Company Establishment in Turkey -
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7
Commandite Company: a Commandite Company is established

to operate a commercial enterprise under a trade name. The liability of some shareholders is limited to the capital subscribed
and paid by the shareholders; for some shareholders there is no
limitation of liability. The partner whose liability is unlimited is
known as the active partner or commandite.
- A commandite company has the following characteristics:
The commandite can only be a legal entity.
There is no minimum capital requirement to set up a commandite company.
The rights and duties of the shareholders are defined in the
Articles of Association.
Collective Company: it is a company, established for the purpose
of engaging in commercial activities under a common trade
name, and the liability of none of the shareholders is limited
only to the capital subscribed and paid by the shareholder.
- A collective company has the following characteristics:
All the shareholders of a collective company must be natural
persons.
There is no minimum capital requirement.
The rights and duties of the shareholders are defined in the
Articles of Association of the company.
Co-operative Association: this is a business association, established by persons who want to jointly supply various needs
connected with their professions, craft, and livelihoods. The
Co-operative Association is based on a principle of mutual help
and suretyship.8
Arrangements related to Co-operative Associations are governed
by the Co-operatives Law.
2.1.2 Steps to Establish a New Company9

There are minor differences in the procedures for setting up
different types of companies. The following points detail the
procedure for establishing an incorporated company in Turkey:
| The required documents and statements, as detailed in the
following sections (Section 2.1.2.1 2.1.2.5), should be submitted
to the Trade Registry Offices (TRO) in the province where the
new company is to be established.
| The TRO will provide approval, only if the documents and
statements are in accordance with the legal requirements. The
rights of a third person should be duly covered by the documents.
| On approval by the TRO, each company is provided with a
unique registration number.
| The Istanbul TRO maintains computerised copies of all the
statements and documents submitted and also files them in
the company dossiers.
| The TRO in Ankara publishes registrations and participations
of the new company in the Turkish Commercial Registration
Newspaper.
| Digital copies of the official newspaper published in Turkish are
also maintained and filed in the related company dossiers.
| The fee for registration formalities is announced on a yearly
basis by the Ministry of Finance.
| The charges for publishing the registrations and participations
in the Turkish Commercial Registration Newspaper are stipulated by the Union of Chambers, Ankara.

Figure 1 illustrates the major steps followed while establishing

a new company.
Figure 1: Steps Followed for Setting up a Company
Notarisation of the articles of association
Submission of the required documents and

company establishment form to the Trade
Registry Office
Establishment of the Company
Registration at the tax office
Commencement of operations

2.1.2.1 Documents Required to Set Up a Merchant Organisation

The following documents must be submitted to the TRO of the
province where the company is to be established:
| A petition duly signed by the merchant
| The notary-certified company name it should also include
the following details:
Home address
Business address
Purpose/subject of the business
Date of commencement of operation
Nationality of the merchant
Name of the company
The document should also include three specimen signatures
of the merchant.
| A translated and notary-certified copy of the merchants
passport
| The Chamber Registration Statement including a photo of the
merchant
| The letter of commitment bearing the merchants signature
If the merchant is a foreign national living and working in Turkey, he/she is also required to submit their notarised copy of
residence and work permit to the TRO.
2.1.2.2 Documents Required to Set Up a Joint Stock Company
or a Limited Company
| A petition (including the name of the Tax Office of Registration)
signed by the authorised person or proxy
10
The notarised copy of or original Power of Attorney document

must be submitted along with the petition
| Five copies of the Establishment Statement, completely filled
in and signed by the authorised person
| Three copies of the Articles of Incorporation, certified by the
notary public
If the foreign partner is a natural person, he/she should submit
two translated copies of his/her passport and certified by the
notary public.
If the foreign partner is a legal entity, the following documents
should also be submitted:
- The Activity Certificate of the foreign entity, prepared by the
relevant authority in the entitys home country
The Activity Certificate should include information about the
signature executives of the company
- The Power of Attorney, including information regarding the
person or the authority or the natural person responsible
for the establishment procedure of the company in Turkey
It should include the following details:
The title of the company to be established
The name of the person who is authorised to represent the
company
- Signatures of the Turkish Consulate in the investors country
should be present on the Activity Certificate and Power of
Attorney
- The above certificates should also be notarised and translated
into Turkish
- Two copies of the Signature Declarations of the authorised
persons under the company name
11
- A copy of the bank receipt from the Ziraat Bank, Bilkent Plaza
Branch, proving deposit of 4/10,000 of the companys capital
to the Arbitration Court, or the ETF receipt which is signed
and stamped as collected
- The Chamber Registration Statement including the photos
of natural partners
- Letter of Commitment bearing signatures of the authorised
person
It is mandatory to obtain permission from the Ministry of Trade
and Industry for the documents, created for establishing the
company. The Articles of Incorporation approved by the notary
public are to be approved by the Ministry of Trade and Industry
Domestic Trade Department.
2.1.2.3 Documents Required to Set Up a Collective Company
| A petition (including the name of the Tax Office of Registration)
bearing the signature of the authorised person or the proxy
A notarised copy of or the original Power of Attorney
| Five copies of the Establishment Statement, completely filled
in and signed by the authorised persons
| Three copies of the Articles of Incorporation, certified by the
notary public and signed by all the partners
| Two copies of the declaration with the company officials signatures
| A document bearing the companys name
| Two copies of the passport approved by the notary public,
translated into Turkish
12
| The Chamber Registration Statement including photographs

of natural partners in the company
| The letter of commitment duly signed by the authorised person
| The notarised residence permit (in the case of foreign nationals
residing in Turkey)
2.1.2.4 Documents Required to Set Up a Commandite Company
The documents required for the establishment of a commandite
company include all the documents required for the establishment of a collective company. If the limited partner is a legal
entity, it is also required to submit the following documents:
| The Activity Certificate of the company, prepared by the relevant authority in the investors country; the certificate should
also include the executives signatures
| The Power of Attorney with information about the authority
or the natural person responsible for the establishment of the
company in Turkey
The attorney should mention the title of the company proposed to be set up in the country
It should also mention the name of the person authorised to
represent the company
| The documents listed above must bear signatures of the Apostle or the Turkish Consulate in the foreign investors country.
| The approved certificates should be translated into Turkish.
2.1.2.5 Documents Required to Set Up
a Co-operative Organisation
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| A petition bearing the signatures of the authorised persons

| Two copies of the Articles of Incorporation, approved by the
ministry concerned and two copies of its notarised summary
| The Letter of Permission, issued by the ministry concerned
| Name of the co-operative, signed by the board members of the
proposed co-operative
| The Statement of Chamber Registration bearing the partners
photo
| Two copies of the passport, translated and certified by the notary public
| The notarised residence permit (to be submitted only by foreign nationals living in Turkey)
According to Article No. 56 of the Law for Co-operatives, the executive board members should be citizens of Turkey
2.2 An Office of Foreign Entity
Foreign nationals are allowed to set up a liaison office or a branch
office of their entity in Turkey. The procedure and documents
required for setting up a liaison office and a branch office are
detailed below:
2.2.1 Liaison Office10
Liaison offices are a special type of office. The main activity of
which is to conduct market research and feasibility studies and
accumulate investment opportunities in the Turkish market on
behalf of their head offices. They are not allowed to be involved
in any commercial activity.

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14
2.2.1.1 Procedure for the Establishment of a Liaison Office

The investors have to obtain permission from the General Directorate of Foreign Investment11
| The General Directorate of Foreign Investment grants initial
permission for three years
| The period permitted could be extended after considering the
past operations and future activity plans of the liaison office
2.2.1.2 Documents Required to Set Up a Liaison Office12
The following documents must be submitted to the General
Directorate of Foreign Investment of Turkey:
| The Certificate of Activity, certified by the Turkish Consulate
or approved according to the provisions of the Convention
Abolishing the Requirement of Legalisation for Foreign Public
Documents, prepared on the basis of the Hague Conference on
International Private Law
| The balance sheet and income statement or the operational
report of the investors parent company
| The Power of Authority disclosing the name of the person responsible for operating the liaison office in Turkey
| A Power of Attorney is also required in case a person other than
the authorised person is asked to perform duties necessary for
establishing the company
2.2.2 Branch Office13
Foreign companies whose capital is divided into shares can open
a branch in the country on receiving approval from the Ministry
of Commerce and Industry (MoCI).
The General Directorate of Foreign Investment can be contacted via email at
investmentadvisoryservice@hazine.gov.tr and by post at Hazine Mstesarligi
Yabanci Sermaye Genel Mdrlg 20. Kat Emek Ankara 06510 Turkey
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13
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2.2.2.1 Procedure and Documents Required for the

Establishment of a Branch Office
| First, the investing company appoints a fully authorised company representative who is a resident of Turkey.
The following documents must be submitted to the Directorate
General of the Domestic Trade14 of the MoCI:
| A petition bearing signatures of the authorised representative
or the investing companys stamp; the petition should include
the following details:
Date of the set-up of the company
Country of origin of the investing company
The capital of the company
Name, nationality and address of the representative who resides in Turkey
A letter of commitment stating that the authorised representative will adhere to all relevant regulations and laws, required
for operating in Turkey
Branch office address
Field of activity or activities undertaken by the branch
The following documents should also be attached to the petition:
| A document (both the original and a Turkish translation) proving that the decision to set up a branch office in Turkey was
made by the companys authorised organs.
| The original copy of the Articles of Association and a translated
copy (in Turkish)
Addressed: Sanayi ve Ticaret Bakanligi, I Ticaret Genel Mdrlg Eskisehir Yolu 7.

Km. Ankara Turkey
14
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| The original copy and a Turkish translation of the Establishment Document with information about the following:
The companys location
The legal system followed by the company
| The original copy and a Turkish translation of the recent Activity
Status of the company
| The original and translated copies of the Power of Attorney,
made in the name of the company representative
| The representative should carry out activities, as defined by
the companys Article of Association
The representative will represent the company in all cases resulting from the branchs operations in the court of law as a
defendant, claimant or a third party
In case a subordinate office is opened by the company, the
representative will assign the new representative for the subordinate office
The newly assigned representative will have powers similar to
those enjoyed by the assigning representative. The above documents, other than the petition, should be ratified by the notary
public and approved by the Consulate General of Turkey in the
country of the companys head office, or apostilled according
to the Convention Abolishing the Requirement of Legislation
for Foreign Public Documents.
After receiving approval from the MoCI, the following documents
are to be submitted to the TRO:
| Establishment petition and notice form
The petition has to be in Turkish and bear the signatures of the
authorised person.
Where the company is nominating a representative, a copy of the
Power of Attorney translated into Turkish must be attached, too.
17
All the attached documents should be listed on the petition

that is filed.
Five copies of the Establishment Petition and Notice Form,
signed by the authorised person, are to be submitted.
| Two notarised copies of the Power of Attorney, issued in the
name of a representative residing in Turkey
| Letter of approval, issued by the MoCI
| Special documents known as Muzeyyel Bayanname ve ilani,
provided by the MoCI to the company if the approval is granted
| A notarised copy of the identity proof (in case the authorised
person is a Turkish national)
| A notarised copy of the passport of the authorised person
| The authorised persons notarised signature circular with information about the title of the person at the branch should
also be provided with the petition
| A Letter of Commitment proving that all the information provided is true; the letter should bear signatures of the authorised person
| A duly filled in Chamber Registry Declaration Form affixed with
passport-size photos of the person in charge of the branch; the
Chamber Registry Declaration Form can be obtained from the TRO
2.3 Unincorporated Company
2.3.1 Joint Venture15
The term Joint Venture was introduced to the Turkish legal system following the enactment of Communiqu number 2009/2
by the Ministry of Industry and Commerce. According to the
Communiqu, a joint venture can be registered at the TRO if
required, by the founders of the joint venture.
HG. Org Article - Newly Introduced Legislation in Relation to Joint Ventures
Turkey - 2009
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2.3.1.1 Procedure to Set up a Joint Venture16

The following points provide information about setting up a
joint venture:
The agreement made for establishing a joint venture should be
in writing and approved by the Turkish notary public. The agreement should include the following information:
| Name of the joint venture
| Name of the trade to be carried out by the partners
| Leading partners in the company
| Registered addresses of the joint venture partners
| The extent of authorisation regarding the partners commitment and representation to the joint venture
| A provision to the effect that the joint venture is set up to
operate a commercial enterprise
| An application for registry is submitted to the TRO of the place
where the joint venture will be established
The Joint Venture can be deregistered from the trade registry
office where it was registered on submitting a petition regarding the deregistration. The petition should bear the signatures
of the partners of the joint venture.
The following documents can be downloaded from this Link:
| Chamber Registration Statement for the legal entities
| Chamber Registration Statement for merchants
| Establishment Statement
| Letter of Commitment
Istanbul Chamber of Commerce Article: Documents Required for Joint-Stock

Company Registration
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2.4 Reforms in the FDI law17

The Turkish government has introduced reforms to its Foreign
Direct Investment Law. The new law removes various restrictions
and simplifies the investment procedure. Below are some of the
changes introduced to the FDI Law:
| The FDI screening and approval procedures, required in cases
of setting up of a new business and share transfers, have been
removed.
According to the new law, the foreign investor will not be required to obtain approval from the business set-up and share
transfer, except in case of some specific sector.
The conditions for the establishment of a business and share
transfers have been made uniform for local and international
investors.
| Earlier, prior approval was required for certain transactions
of foreign investment companies; this requirement has been
waived.
| The earlier requirement regarding minimum capital investment of EUR 33.430 (USD 50.000) by each foreign shareholder
has also been removed.
| Previously, foreign investors could only set up a joint stock
company or a limited company. Now, any form of company
existing, as stipulated by the Turkish Commercial Code, including partnerships, can be established by foreign investors.
| The valuations done by the international credit agencies and
courts or competent authorities of the investors country will
also be accepted while determining the share value for marketable securities contributed as capital in kind.
| The new foreign investment legislation is based on the principle
of equal treatment for both domestic and foreign investors.
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| Both foreign capital companies located in Turkey and domestic

investors now have similar rights with respect to the acquisition of real estate.
| The legal entities of a foreign country can hire foreign personnel in Turkey if the personnel have work permits, granted by
the Ministry of Labour and Social Security.
2.4.1 Turkish FDI Law Based on Equal Treatment Principle18
The Turkish law is based on equal treatment of national and
foreign business investors. Some principles of the Foreign Direct
Investment Law 4875 of Turkey are outlined below:
| Unless there is an international agreement or a special law,
foreign investors in Turkey have an equal right to make investments and participate in all types of companies and sectors
which are open for investment to the domestic investors.19
| There will be no expropriation or nationalisation of FDI, except
in the following cases:
If it is required for the interest of the general public
If payment has to be made for compensation, according to the
law
| Investors are free to transfer their net profits, dividends, licence
fee, fees received for management or other similar arrangement, etc. to other countries.
| Foreign investors can approach the authorised local courts,
national or international arbitration, or any other means for
settlement of disputes arising from investment agreements,
public concession contracts and other conditions concluded
with the foreign investors. However, the related regulations
must be fulfilled and parties to the arbitration should have
mutually agreed to the settlement procedure.
Yased. Org Foreign Direct Investment Law, 4875 June 2003
HG. Org Article: Newly Introduced Legislation in Relation to Joint Ventures Turkey
18
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2.5 Average Time Required for Setting up a Business

It is necessary to meet certain regulations such as registration of
the business before actually starting off with the operations of
a new business. The fewer the procedural hurdles, the less time
is required to set up a new business.
Table 2 gives an overview of the time and cost involved in starting
a new business in Turkey:
Table 2: Starting a Business in Turkey
DATA RELATED TO STARTING A BUSINESS
Year 2012
Rank
61
Procedures (number)
Duration (number of days)
Cost (percent GNI per capita)
11,2
Minimum Capital Required

(percent GNI per capita)
8,7
The World Bank Group - Doing Business Turkey 2012
Turkey follows a pro-business approach to attract FDI. The

country has very few investment-related procedures for starting a new business. The Turkish government made reforms
to its FDI law in 2003 and removed the requirements for preentry screening and the minimum capital investment.20
20
Istanbul 2009 Turkey Turkish Business Environment August 2009

22
Figure 2 shows a comparison between the time and procedures

required for setting up a business in Turkey with that in some
other countries:
Figure 2: Obstacles in Starting Businesses
in Various Countries (June 2011)
Time Taken for Starting a Business

Hong Kong
OECD
Singapore
China
India
Russian Fed
Brazil
0
20
40
60
80
100
120
Time (days)
Procedures Essential for Starting a Business

Hong Kong
OECD
Singapore
China
India
Russian Fed
Brazil
0
10
15
Number of Procedures
World Bank Doing Business June 2011 Turkey
23
3 Procedures for Immigration

Foreign nationals visiting Turkey should carry their visa and
passport while entering the country. The visa and work permit
regulations of the country are discussed in this section.
3.1 Visa Policy of Turkey21
The consul in the diplomatic or consular mission of Turkey makes
decisions regarding the granting of visas. Foreign nationals looking to visit Turkey must obtain a visa from the Turkish embassy
in their country.
| Foreigners who wish to work in Turkey need to obtain a work visa.
| On entering Turkey, foreigners have 90 days to apply for and
secure the residence permit. Before obtaining the residence
permit, foreigners should carry documents such as a driving
licence and national passport for identification purposes.
| The visa and passport requirements for each country can be
accessed through this link.
Here is an overview of the different types of visas and the issuing
authority depending on the duration of stay:
| Foreigners who wish to stay in Turkey for less than 30 days can
obtain the visa at the foreign port of entry, including Turkish
airports.
| Foreign nationals who wish to stay in Turkey for more than
30 days can obtain a visa from the Turkish Embassy in their
country. A visa granted for more than 30 days is known as a
special visa.
A person with a special visa has to obtain a residence permit
from the Turkish Security Directory.
Expat Forum.com Article: Turkey visa, permit and immigration
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3.1.1 Overview of the Turkish Visa Policy

Some of the points regarding visa requirements in Turkey are
given below:22
| The visa application must be completed and submitted to the
Visa Officer. The visa form can be downloaded from the Turkish
Consulate website.
The form can also be downloaded from this link or
The form can be obtained from the Consulate General by sending a letter of request along with a self-addressed and stamped
envelope.
| The passport of foreign nationals should be valid for at least
six months when they reach Turkey.
| The travel document holders should ensure that their travel
documents are valid for a minimum of one year from the date
of entry into Turkey.
| All payments for the visa and other administrative fees should
be paid in cash, by postal order or company cheque payable to
Turkish Consulate General.
Other modes of payment such as credit cards, debit cards and
personal cheques are not accepted.
The visa fee varies depending on the nationality and type of
visa.
The visa fee is non-refundable on refusal.
3.1.2 Types of Visas Issued by the Turkish Authorities23
The visas, issued by Turkish authorities, are divided into entry
visa and transit visa.
Table 3 shows different types of visas and the duration of stay
permitted by them:
Turkish Consulate General Visa Information To Travel To Turkey
ABGS Legislation on Visa Policy and Practice February 2006
22
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Table 3: Type of Visa and Length of Stay Permitted

Visa Type
Duration
Documents Required
Single
Entry Visa
3 months
(maximum period)
Original signed passport

valid for 6 months
One blank visa page for visa
stamp
A 2x2 inch passport size
photo
Required to pay USD 45 for
visa application
Multiple
Entry Visa
More than once

during the 12
months
(no limit on the
number of entries)
Original passport valid for 6

months beyond the period
of intended stay
One blank visa page for visa
stamp
A 2x2 inch passport size
photo
Required to pay USD 150 for
visa application
Source: Expat Forum.com Article: Turkey visa, permit and immigration

and US Passport Service Guide
| Single Transit Visa This visa allows for only one transit through
Turkey.
| Double Transit Visa This visa allows for two transits through
Turkey.
3.1.3 Visa Extension Policy24
If a foreign national wishes to stay in Turkey for a period longer
than what is permitted by the visa, he/she needs to apply to
the Ministry of Interior for an extension. Turkish law does not
have provisions for extending visa duration, but foreign nationals can obtain a residence permit to stay longer in the country.
The residence permit is also approved by the Ministry of Interior.
ABGS Legislation on Visa Policy and Practice February 2006
24
26
3.2 Procedure for Obtaining a Residence Permit 25

Foreign nationals who wish to stay in the country for more than
30 days are required to obtain a residence permit. The residence
permit can be granted for a maximum period of one year. The
following points describe the procedure to be followed for obtaining a residence permit in Turkey:
| The foreigner should file an application to the Turkish consulate
and embassy for a residence permit.
| The visa application of foreign nationals must include information regarding the desired duration of stay.
| The visa must be obtained before entering Turkey.
| If the government has denied a visa to a person, he/she also

becomes ineligible for the residence permit.
| If a foreign national wishes to extend the duration of his/her
residence permit, he/she should approach the local security
authorities with a valid reason for extending their stay.
3.2.1.1 Documents Required for Obtaining the Residence Permit
| Educational certificate
| Five passport size photos
| A copy of the passport with the visa

| Residence permit fee
3.3 Procedures for Work Permit26

The work permit of foreign personnel employed in companies,
branches or liaison offices is governed by the Department of
Work Permit. The Turkish law regarding work permits differentiates between the special direct foreign investment and nondirect foreign investment and the key personnel.
According to the law, a company or branch will be treated as
special direct foreign investment upon fulfilment of certain
conditions, some of which are provided below:
Expat Forum.com Article: Turkey visa, permit and immigration
Ministry of Labour and Social Security Direct Foreign Investment
25
26
27
| The last recorded annual turnover of the company or branch

must be at least EUR 2.625 million (61,04 million Turkish Lira).
| The last exports of the company or branch must be at least
EUR 0,515 million (USD 1 million).
| The branch or company should employ at least 250 personnel
registered with the Social Securities Institution.
| Foreign shareholders should have a share capital of at least EUR
349,279 million (812,277 million Turkish Lira) in the company.
According to the law, a person shall be treated as key personnel upon
fulfillment of certain conditions, some of which are provided below:
| The person should be an executive or in senior management.
| He/She should be responsible for managing the company or

a part of it.
| He/She should supervise or check the work done by the companys auditors, administrative or technical personnel.
| He/She should have the right to hire and terminate personnel,
or should have rights to make suggestions in this regard.
If a company specifies the conditions for special direct foreign
investments, and the foreign national specifies the conditions
for becoming key personnel, they need to submit documents
of proof showing that they meet the necessary requirements.
3.3.1 Documents to be Submitted by the Foreign National
| A work permit application made to the Ministry of Labour and
Social Security
| Four copies of the application form, bearing recent photographs of the foreign national, duly signed by the employer
and the foreign personnel
| A copy of the passport and diploma translated in Turkish duly
notarised or approved by the consulate of Turkey
| A notarised copy of the residence permit the residence permit,
other than for education purposes, has to be valid for six months
and the application has to be made within this period.
28
If a person fails to comply with these conditions, he/she may

be required to apply to the Foreign Representative of Turkey
in his/her country.
| A copy of the CV, prepared in Turkish.
The CV form can be downloaded from this link.
| The status document informing whether the applicant is a partner
representative or a key personnel the status document must be provided by the employer and approved by the competent authority.
If the foreign national wants to apply for work permit within the
framework of professional services, he/she should submit the
following additional documents:
| A Diploma Equality Certificate, obtained by the Regulations for
Equality of Foreign
Higher Education Diplomas according to Articles 3 and 7/p of
Law 2547 if the foreign national is pursuing education in a
foreign country
| A certificate from the professional institution of the foreign
country establishing the fact that
The foreign national is pursuing his/her profession in the country.
He/She is a member of a professional organisation and has
not been forbidden from carrying out his/her profession.
| If the foreign national is carrying out consultancy and technical
instruction work, he/she should also submit the certificate of
work description and copy of agreement between the firms or
between the firm and the person.
| If the foreign national is an engineer, architect or urban planner
providing consultancy and technical instruction of any kind, or
has prepared projects for an international tender issued by public
institutions and establishments, and worked as authorised signatories, he/she should submit a covenant establishing the fact.
The covenant should be duly certified by the notary public or
consulate.
29
Information regarding the additional documents, required to

be submitted by the professional can be accessed through the
website Department of Work Permit for Foreigners Direct Foreign Investment.
3.3.2 Documents Required to be Submitted by the Employer
| A work permit application made to the Ministry of Labour and
Social Security.
| Documents establishing the fact that the company follows
Article 4 of Regulations on The Employment of Personnel of
Foreign Nationality in Direct Foreign Investment.
| Last years balance sheet and statement of profit and loss, duly
certified by the tax administration or a chartered accountant.
| If the institution applying for a work permit is a company with
foreign capital, it should submit the Turkish Trade Registry Gazette or an approved copy of the same including information
about the last capital and the partnership structure.
| If the foreign national is covered by the countrys social security
system, he should submit a document to the effect, issued by
the public authorities of the foreign country the document
should be translated into Turkish and duly notarised.
| The list of last months insured service provided to the Turkish
and foreign staff should also be submitted.
3.4 Work Permit for a person other than Key Personnel
The type of work permit issued to a person other than key personnel and the terms and conditions pertaining to the same
are given below:
3.4.1 Work Permit for a Definite Period of Time
It is issued for a maximum of one year (except in cases where
differing terms are provided by bilateral or multi-lateral agreements signed by Turkey).
30
| The visa may be extended for a duration of three years on

application.
The extension is subject to the condition that the person will
continue to work in the same workplace, job or enterprise.
3.4.2 Work Permit for an Indefinite Period of Time
| Foreign nationals who have been lawfully residing in Turkey
for the past eight years or have been working in the country
for the past six years can be granted a visa for an indefinite
period of time.
| The eight-year residence in Turkey does not include the period
of education for the applicant.
The person applying for a work permit has to submit a certificate and the required documents to the Ministry.
The certificate is issued by the police authorities. This certificate
establishes the fact that the person had a legal and uninterrupted residence in the country.
| If the applicant has been working in the country for the past
six years, he has to submit a certificate and the required documents to the Ministry of Labour and Social Security.
The certificate establishes the fact that the person has worked
in Turkey for the past six years. It is issued by the relevant
authorities.
The duration of the residence permit for nationals who are issued a work permit for an indefinite period is determined by the
Ministry of Internal Affairs, according to the rules relating to the
foreigners residence and travel in Turkey.
3.4.3 Independent Work Permit
| The independent work permit is issued to the following foreign
nationals:
31
Who will work independently

Who have been residing in Turkey lawfully for the last five years
The period of five years does not include the applicants duration of education.
The work of the applicant shall help increase the employment
and economic development of the country.
| The applicant has to submit a certificate along with the required documents to the Ministry.
The certificate establishes the fact that the applicant had
stayed in the country lawfully for the last five years.
The certificate is issued by the police authorities.
The duration of the residence permit for nationals who are
issued an independent work permit is determined by the Ministry of Internal Affairs, according to the rules relating to the
foreigners residence and travel in Turkey.
The exceptions to the above conditions regarding work permit
can be accessed through the website Department of Work Permit for Foreigners.
3.5 Average Living Costs for Expatriates27
The cost of living is reasonable in Turkey, compared with other
European nations such as Germany and France. Property owners
in the country have to pay a council tax, normally about EUR 25,2
(50 YTL) a year. The average electricity and water bill is about EUR
251,5 per year. Most families in Turkey spend an average of EUR
10,1 per week on food items, while eating out costs about EUR
18,8 per person per day. The countrys retail sector is characterised
by both small local shops and big national and international
superstores, giving plenty of choice for consumers.
The Global Property Group Article: Living and Cost of Living in Turkey July 2008
27
32
Turkeys purchasing power index in July 2009 was 73,3. The consumer price index rose by 10,1 percent in 2008, with the biggest
rise seen in the price of food and non-alcoholic beverages. Prices
in this category rose by 11,9 percent in 2008.28
3.6 Average Rent for Office Space in Turkey29
According to a report published by Jones Lang LaSalle, the prime
rental levels in 2011 were stable around EUR 4,5-5,0 per square
metre per month.
28
29
Turkish Statistical Institute - Facts and Figures 2009 - September 2009

Jones Lang LaSalle Turkey Real Estate Overview January 2012
33
4 Social Security System in Turkey

4.1 Overview30
According to Article 60 of the Turkish Constitution, everyone in Turkey has the right to social security. The social security system in the
country is composed of the following three major organisations:
| Social Insurance Institution (SSK)
| Pension Fund for Civil Servants (Emekli Sandigi)
| Social Security Institution for the Self-Employed (Bag-Kur)
The following is an overview of the organisations, involved in
the social security system of Turkey:
4.1.1 Social Insurance Institution
SSK is responsible for the welfare of workers in the private sector
and blue-collar workers employed in the public sector.
| The organisation provides social insurance and healthcare insurance to all workers operating under the service contract.
| The members of SSK are insured for work injuries, professional
job diseases, medical care, illness, disability and maternity care.
| For healthcare security, the payment scheme for drugs is based
on a co-payment system. For instance, an outpatient buying
drugs would pay 10 percent of the cost if he/she is retired and
20 percent of the cost if he/she is employed.
| Members are entitled to the old age pension when they reach
a specified age and have paid their regular contributions.
30
All about Turkey Article: Health Care in Turkey

34
4.1.2 Pension Fund for Civil Servants (Emekli Sandigi)

Emekli Sandigi is a government-operated retirement fund for retired civil servants. It also provides benefits for members health
insurance. The benefits of the fund are as follows:
| If a retired civil servant purchases drugs, he/she has to pay 10
percent of the cost of the drug and the remainder is paid by
the fund.
| The civil servants are not supposed to pay health insurance premiums; the entire expenditure is funded by the government.
| Other privileges include retirement pension, retirement bonus
and a death grant, payable to the survivors of a pensioner.
4.1.3 Social Security Institution for the Self-employed
(Bag-Kur)
Bag-Kur covers self-employed people who are not covered by
the Social Insurance Institution. The members include craftsmen, artisans, technical and professional workers (affiliated to a
chamber or professional association), shareholders of companies
other than co-operatives and joint stock companies, and those
self-employed in agricultural activities. The members of Bag-Kur
have to make varied contributions to the healthcare fund (on a
scale of 1 to 24 ; 1 being the lowest contribution), depending on
their financial health.
35
4.2 Social Security Schemes in Turkey31

Turkey has the following social security schemes:
| Old age
| Invalidity
| Survivorship
| Work accident and occupational diseases
| Healthcare
| Unemployment
| Non-contributory payments
Table 4 shows the contribution made by individuals, their employers and the Turkish government to the schemes:
31
Council of Europe Social Security System in Turkey

36
Table 4: Overview of the Various Categories of Insurance

Branch of Insurance
Percentage
Contribution by
the Employed
Invalidity
Old age
Survivorship
Short-term insurance
(covers employment injuries, occupational
diseases, sickness, maternity)
No contribution
Universal health insurance
Unemployment
Table 5 provides an overview of the categories of people covered

by the schemes and the benefits availed by them:32
Table 5: Overview of the various Categories of People
Covered by the Schemes
32
Name of the Scheme
Person Covered by the Scheme
Old-age pension
People aged 65 years or above
Invalidity
People who lost at least 60
percent of the working and

earning capacity after being
insured

37
Percentage
Contribution by
the Employer
Percentage
of Total
Contribution
Contribution by
the Government
11
20
One-fourth of
the total annual
contribution
16,5
16,5
7,5
12,5
Period of Contribution
Benefit
Civil servants and selfemployed 9.000 days

Workers 7.200 days
Old age pension

Lumpsum Payment
At least 10 years of employment

being insured with 1.800
premium days
Invalidity pension
Exception: if a person needs regular

care of others, then the law does not
require him/her to serve 10 years
of employment. The self-employed
should not have any insurance
premium debts.
38
Name of the Scheme
Person Covered by the Scheme
Duty invalidity
Civil servants
Survivorship
Widow
Widower
Parents of employed
Children of employed
Healthcare
Citizens of Turkey living in the

country
People employed in Turkey
transferred to a foreign country

for business requirement
Refugees
Stateless people
Foreigners residing in Turkey, not
covered by the insurance scheme
of their country
39
Period of Contribution
Benefit
A person working in the public

sector is treated as duty invalid
in the following cases:
Invalidity occurred while
protecting his/her institution
Invalidity occurred while
travelling to and from the
workplace
Duty invalidity pension
Workers, civil servants and

self-employed 1.800 days.
The survivors of a worker are
eligible for the pension if the
deceased was insured for
the past five years and had a
premium payment period of
900 days, excluding the debt
period.
Old age pension

Lumpsum payment
Marriage payment
Funeral payment
Minimum 30 days of
contribution in the preceding
year with no debt in the
preceding 60 days
Old age pension

Lumpsum payment
Marriage payment
Funeral payment
40
5 Special Investment Zones in Turkey
33
5.1 Introduction
Turkey has three types of special investment zones Technology
Development Zones Technoparks, Organized Industrial Zones
(OIZs) and Free Zones classified on the basis of their function,
aim, geographical factors, applicable benefits and minimum
investment requirement. Below is a brief description of each
of these three zones:
5.2 Technology Development Zones Techno parks
Technology Development Zones (TDZs) are areas developed to
promote R&D activities, fuelling investment in high-technology
fields. Currently, there are 39 such TDZs, 27 of which are operational and the remaining 12 have been approved and are under
construction. Six TDZs are located in Ankara, five in Istanbul and
three in Kocaeli. More TDZs located in other provinces.
Table 6: TDZs in Turkey*
33
S. No.
TDZ
Location
METU Technopolis (METUTECH)
Ankara
TUBITAK Marmara Research Centre
Kocaeli
Izmir Technology Development Zone
Izmir
Ankara Cyberpark
Ankara
GOSB Technopark
Kocaeli
ITU Ari Technopolis
Istanbul
Invest In Turkey
41
5.2.1 Incentives Offered in TDZs

| Offices are immediately available for rent.
| The necessary infrastructure is readily arranged on office premises.
| Any profit earned through R&D or software is subject to exemption from income and corporate taxes until 31 December 2023.
| Exemption from VAT is also valid until 31 December 2023 for
deliveries of application software, developed exclusively in TDZs.
| This covers software for systems management, data management, business applications, the Internet, mobile phones and
military usage.
| Researchers including R&D or software personnel, employed
in the zone, are exempted from paying taxes on their salary
until 31 December 2023.
| For IT-specific sectors, there are provisions for VAT exemption,
applicable until 31 December 2023.
Status
Website
Operational
www.metutech.metu.edu.tr
Operational
www.mam.gov.tr
Operational
http://iztekgeb.iyte.edu.tr
Operational
www.cyberpark.com.tr/eng
Operational
www.gosbteknopark.com/English
Operational
www.ariteknokent.com.tr
Invest In Turkey Special Investment Zones

*Note: The list is not exhaustive. Please access the entire list of TDZs in Turkey here
42
5.3 Organized Industrial Zones (OIZs)

OIZs are areas, designed with readily available infrastructure and
social facilities, creating an investor-friendly environment. Infrastructure facilities in these zones include roads, water, natural
gas, electricity, communications, waste treatment, etc. Currently,
there are 263 such OIZs in 80 provinces, 148 of which are in operation while the remaining 115 are under construction.
Table 7: OIZs in Turkey*
S. No.
OIZ
Location
Adana Haci Sabanci

Kozan
Adana
Adiyaman
Besni
Golbasi
Adiyaman
Afyonkarahisar
Iscehisar Mermer
Afyonkarahisar
Aksaray
Aksaray
Amasya
Merzifon
Amasya
Ostim
Ivedik
Polatli
Aso I.
Baskent
Ankara
43
Status
Website
Operational
http://www.adanaorganize.org.tr/
Operational
http://www.besniosb.org.tr/
Operational
http://www.afyonosb.org.tr/
Operational
http://www.aksarayosb.org.tr/
Operational
http://www.ostim.org.tr/
Operational
http://www.antalyaosb.org.tr/
Invest In Turkey Organized Industrial Zones

*Note: The list is not exhaustive. Please access the entire list of OIZs in Turkey here
44
5.3.1 Incentives Offered in OIZs

Besides enjoying the regular investment incentive schemes such
as the general, large scale, region- and sector-based incentives
and employment incentives, investors within OIZs can benefit
in the following ways:
| Land acquisition is exempted from VAT. Real estate duty is waived
for a five-year period, beginning after plant construction.
| Water, natural gas and telecommunication costs are low.
| Tax is waived for unification and/or separation of plots (which
is roughly 0,54 percent of the total costs).
Municipality tax is waived for construction and usage of the
plant. Exemption is also granted on solid waste if the OIZ does
not benefit from municipality service.
5.4 Industrial Zones
Industrial zones are allocated areas, suitably designed for largescale and technology-sensitive investments. The investment sites
are evaluated by the Ministry of Industry and Trade, after which the
Council of Ministers grants approval for industrial zones. The minimum amount of area for an investment site must be 1,500 m2. Investments must also be made in high-technology sectors. All benefits
applicable to OIZs are also sanctioned for industrial zones.
5.5 Free Zones
Free zones are special areas within the political borders of Turkey, but considered outside the customs area. These areas are
allocated with the aim of encouraging export-oriented investment. Any legal or administrative regulations in the commercial,
financial or economic fields, applicable within a customs area are
either completely null and void or partially implemented in such
zones. There are currently 20 operational free zones in Turkey,
situated close to the EU and Middle East markets, and adjacent
to major Turkish ports on the Mediterranean, Aegean and Black
seas, providing easy access to international trade routes.
45
Table 8: Free Zones in Turkey*

S. No.
Free Zone
Location
Adana Yumurtalik Free Trade Zone
Ceyhan/Adana
Antalya Free Trade Zone
Yeniliman/Antalya
Bursa Free Zone
Gemlik/Bursa
Denizli Free Zone
Cardak/Denizli
Gaziantep Free Zone
Gaziantep
Istanbul Ataturk Airport Free Zone
Yesilkoy/Istanbul
Invest In Turkey Free Zones

*Note: the list is not exhaustive. Please access the entire list of Free Zones in Turkey here
5.5.1 Incentives Offered in Free Zones

The following are the incentives applicable for the free zones
in Turkey:
| Full waiver of customs duties and other assorted duties
| Full waiver of corporate income tax for all manufacturing companies
| Full waiver of VAT and special consumption tax
| Full waiver of income tax on employees salaries (for companies
that export a minimum of 85 percent of the FOB value of the
goods they produce in such free zones; the goods can remain
in free zones for an infinite time period)
| Freedom for companies to allocate their profits, earned from
the operations in Free Zones to Turkey or abroad
46
6 Overview of the Banking Sector
34
6.1 Introduction
The Turkish financial system is dominated by the banking sector, as most transactions or activities involving money and the
capital markets are handled by banks. State banks were established mainly to finance particular industries (e.g. Ziraat Bank
for agriculture); however, private banks in the country have close
ties with large industrial groups and holdings.
In the early 1930s, the Central Bank was founded and given regular bank responsibilities, such as to protect the currency, issue
bank notes, and regulate the banking system and credit. It was
only after 1983 that the bank reduced its lending and started
strengthening its supervisory roles.
In 1980, only four foreign banks were present in Turkey, but their
number has increased rapidly to almost 50 after the liberalisation of the economy.
All banks in Turkey come under the jurisdiction of the Banks Act
and the provisions of other laws regarding banks. The new laws
led to the creation of the Banking Regulation and Supervision
Agency (BRSA or Turkish BDDK) to protect the rights and benefits
of depositors. The Banks Association of Turkey (BAT, or Turkish
TBB) was founded to protect and promote the professional interests of its members and is considered the representative body
of banking in the industry.35
A total of 45 banks with 9.441 branches in Turkey and 63 branches
abroad are operating, as of January 2011.
34
35
Turkish Embassy - London

All about Turkey - Banks in Turkey
47
Table 9: Banking Structure in Turkey

Category of
the bank
subCategory
Number
of BankS
Commercial
Banks
32
Banks under the
Deposit Insurance
Fund
Foreign Banks
Foreign banks
founded in Turkey
(11)
Foreign banks with
branches in Turkey
(6)
17
Privately-owned
Commercial Banks
11
State-owned
Commercial Banks
Non-depository
Banks
Total Banks
Number
of Banks
13
Foreign Nondepository Banks
Privately-owned
Non-depository
Banks
State-owned Nondepository Banks
3
45
All About Turkey
The list of major banks covered under each subcategory and

their websites are provided in the Appendix.
48
6.2 Procedure for Opening a Bank Account36

The following is the guideline to open a bank account in Turkey:
| First, a tax number must be obtained from the local tax office.
| While applying for a tax number, a valid passport and local
address must be presented. It is advisable to keep photocopies
of these documents.
| Using the tax number, one may open an account with any bank.
| A nominal tax fee is charged for opening an account.
In addition, Turkish residents may possess or purchase foreign
currency without limitation from banks, authorised institutions and private financial institutions. Foreign currency can be
transferred abroad or deposited in local bank accounts. Turkish
residents can obtain operating credit from foreign sources to run
a business. Capital may be transferred abroad for commercial
activities or investment purposes, which is subject to a maximum limit in the amount. A higher amount may be transferred
on approval by the concerned authorities.
36
expatfocus.com
49
7 Recruitment of Local Staff

There are various recruitment channels available in Turkey,
including online recruitment, headhunting agencies, media
advertisements (newspapers, brochures, magazines, TV and
broadcasting), on-site recruiting, job fairs, internal references
and walk-in interviews.
7.1 Major Recruitment Agencies and Websites
The table below shows major recruitment agencies in Turkey
and their websites:
Table 10: Major Recruitment Agencies and Websites
Major Recruitment
Agencies
websites
Karier.net
http://www.kariyer.net/
Kelly Services Turkey
http://www.kellyservices.com.tr/
Manpower Turkey
http://www.manpower.com.tr/
Randstad Turkey
www.randstad.com.tr
Leading HeadhuntING
agencies
One World Consulting
http://www.oneworldconsulting.com/
Antal International Turkey
http://www.atlanticresearch.com/
regions/turkiye.htm
http://www.newswiretoday.com/news/46907/ ;
http://www.manpower.com.tr/
http://www.oneworldconsulting.com/;
http://www.atlanticresearch.com/regions/turkiye.htm ;
http://www.kellyservices.com.tr/
50
7.2 Brief Overview of Labour Laws37

Turkey has a significant advantage in the form of low labour
costs. This factor, coupled with a developing market and investment incentives, make Turkey an attractive destination for foreign investors. The range of labour skills varies widely from the
unskilled, through the semi-skilled and up to a highly skilled
labour force. The workforce consists of a plethora of unqualified,
semi-qualified and qualified workers. The highly qualified workers have a good command of multiple languages.
7.2.1 Labour Law
The Turkish Labour Legislation covers a number of acts such as
the Labour Act (effective from 2003), the Maritime Labour Act,
the Act Concerning Labour/Management Relations in the Press,
the Trade Unions Act, the Collective Agreements, Strikes and LockOuts Act, the Social Insurance and Unemployment Insurance Act,
the Labour Courts Act, the National Holiday and General Vacations Act, the Weekend Holiday Act, the Employment Services
Act, the Labour Offices Act, the Apprentice, Artisan and Master
Workmen Act, the Civil Servants Trade Union Act and Employment of Foreign Employees Act. The most significant among
these is the Labour Act, the application of which covers a majority
of the workforce.
7.2.1.1 New Labour Act
This act came into force in June 2003 and covers the relationships
between employers and employees. It is completely in line with
the regulations, specified by the International Labour Organisation and the European Union (EU). The act is more protective
towards employee interests.
Its salient features are listed below:
37
ELFI International - Investment Guide for Turkey

51
7.2.1.1.1 The Principle of Equality

This aspect covers all prohibitions on discrimination, based on
language, race, gender, political opinion, religion, philosophical
viewpoints, etc. It is also inclusive of discrimination, based on
the employees sex or whether the employee is employed full/
part-time.
7.2.1.1.2 Employment Contracts
This section covers matters pertaining to contracts signed between the employer and the employee along with the obligations associated with each. Employment contracts cover three
main areas:
| Temporary/Permanent work
| Definite/Indefinite period
| Part-time/Work upon call
7.2.1.1.3 Principal Employer / Sub-Employer Relation
This section pertains to the conditions required to hire a subemployer. It also has provisions to protect the interests of employees working for the sub-employer, holding both the principal
employer and sub-employer accountable.
7.2.1.1.4 Probationary Period
This section pertains to details regarding an employees probationary period, the maximum duration of the probation and the
maximum extension available under different contract types
along with the terms and conditions of termination.
7.2.1.1.5 Termination of Employment Contract
Under this section, different conditions of termination of contracts, followed by obligations on each party are specified in
detail. The main categories for termination of employment
contracts are listed below:
52
| Termination of Employment Contracts for Definite Period

| Termination of Employment Contracts for Indefinite Period
Termination of Contract with Notification
Termination of Contract without Notification on Justifiable
Grounds
| Severance Pay
| Collective Dismissal of Employees
7.2.1.1.6 Working Conditions
Working conditions pertain to issues regarding wages and salaries, bonuses and other extra payments, working hours, overtime
work, compensating work, break hours, annual vacation and maternity leave, among others.
7.2.1.1.7 Obligations to Employ Disabled Persons, Ex-Offenders
and Victims of Terrorism
The obligations on employers to hire disabled people and exoffenders are specified. According to the Law, companies employing more than 50 workers have to hire disabled people and
ex-offenders. The terms of their employment are considered,
based on their professional capacity, psychological and physical condition. The number of employees to be hired for each
category is also specified.
7.2.2 Employment of Foreigners
This law pertains to the work permits, issued to expatriates, and
came into effect in September 2003. It cites the conditions for a
foreign national to be employed in Turkey, covering issues such
as work permits, visas and residence permits. Step-by-step procedures for issuing a work permit, obtaining a visa, etc., have been
specified along with information on the maximum duration for
each type and the regulatory authority concerned.
53
7.3 Average Salary Range

The median salary ranges (per year) by job, employer type, years
of experience, city and company size in Turkey in 2009, as per
PayScale, are presented in Tables 11-15
Table 11: Median Salary by Job in Turkey as on 11 April 2012
Job
median salary
(in EUR)
Software Engineer
27.336,91
Software Developer
25.748,2
Senior Software Engineer/Developer/

Programmer
36.612,9
Project Manager Information Technology (IT)

Mechanical Engineer
Country Manager General Operations
Marketing Manager
Finance Manager
NA
23.313,8
76.469,27
NA
NA
Payscale 2012
54
Table 12: Median Salary by Employer Type in Turkey as on

11 April 2012
EMPLOYER TYPE
MEDIAN SALARY
(IN EUR)
Company
33.963,85
Private Practice/Firm
28.845,22
College/University
19.373,97
Government State and Local
17.404,05
Other Organisations
37.485,87
Foundation/Trust
24.982,92
Non-profit Organisation
62.511,86
Hospital
36.933,8
Government Federal
33.725,51
Franchise
22.972,8
Self-employed
17.528,96
Contract
28.217,06
Team
13.418,27
School/School District
16.994,13
Payscale 2012
55
Table 13: Median Salary by Years of Experience in Turkey as on
11 April 2012
EXPERIENCE
Less than 1 year
MEDIAN SALARY (IN EUR)

16.725,63
14 years
20.408,46
59 years
33.122,47
1019 years
50.826,6
20 years or more
71.453,3
Payscale 2012
Table 14: Median Salary by City in Turkey as on 11 April 2012

CITY
Istanbul
Adana

33.828,88
21.537
Angora
NA
Payscale 2012
Table 15: Median Salary by Company Size in Turkey as on
11 April 2012
NUMBER OF EMPLOYEES
19

23.664,14
1049
25.676,41
50199
33.867,65
200599
34.269,67
6001,999
36.802,43
2,0004,999
35.154,85
5,00019,999
46.030,31
20,00049,999
46.686,47
50,000+
47.779,83
Payscale 2012
56
8 Taxation
8.1 Tax System in Turkey
The tax system in Turkey can be classified into three main categoriesincome taxes, taxes on expenditure and taxes on
wealth. The corporate tax rates in Turkey are the most competitive among the OECD (Organisation for Economic Co-operation
and Development) member nations. On 21 June 2006, a new
Corporate Tax Law was enacted, making significant amendments
to the current applications, while simultaneously incorporating
new concepts in the tax legislation.38
8.2 Tax Rates
8.2.1 Income Tax
All individuals, whether domestic or foreign, along with corporations residing in Turkey, are liable to pay income tax on all
income sources. Any non-resident earning an income in Turkey
through the channels of employment, ownership of property,
business transactions or any other income-generating activity is
also liable to pay taxes, but only on the income, earned in Turkey.
38
Invest in Turkey
57
8.2.1.1 Corporate Income Taxes

The basic corporate income tax rate, levied on any business profit
is 20 percent.
Table 16: Tax Withholdment on Select Payments of Turkish
Resident Corporations
Category
Subject to
(Percent)
Dividends
15
Interest on treasury bill and treasury bonds
Interest on other bonds and bills
Bank deposits
15
Profit shares paid by participation banks in

consideration of participation accounts
15
REPO agreements
15
Invest in Turkey
Table 17: Tax Withholding on Select Payments of
Non-Resident Corporations
Category
Subject to
(Percent)
Dividends
15
Interest on treasury bill and treasury bonds
Interest on other bonds and bills
Bank deposits
15
Profit shares paid by participation banks in

consideration of participation accounts
15
REPO agreements
15
Invest in Turkey
58
8.2.1.1 Individual Income Taxes

Income tax rate on a personal basis varies from 15 percent to
35 percent. Income tax rates applicable for the year 2009 are
as follows:
Table 18: Income Tax Rates
Income Sales In EUR (TRY)
Rate (Percent)
Up to 4.042 (9.400)
15
4.024,43 9.890 (9.401 23.000)
20
9.890,43 22.790 (23.001 53.000)
27
22.790,43 (53.001 and over)
35
Invest in Turkey
8.2.1.3 Social Security

Social security is viewed not as a tax, but as a payroll cost to the
employer. Contributions are made by both the employer and the
employee towards a social security system, covering areas such
as sick pay, work-related accidents, unemployment coverage,
pensions and other such programmes.
Table 19: Contribution Rates
CONTRIBUTION ON BEHALF OF
Employer
Employee
Rate (Percent)
19,5
14
Invest in Turkey
59
8.2.2 Taxes on Expenditure

8.2.2.1 Value-Added Tax (VAT)
All commercial, industrial, agricultural, independent professional
goods and services, imported goods and services and their deliveries caused by other activities are subject to VAT. The applicable
rates are as follows:
Table 20: VAT Rates
Category
Rate (percent)
General
Financial leasing services, etc.
18
Depends on the VAT on
the leased item
Basic foodstuffs, textile products, etc.
Certain agricultural products
1
Invest in Turkey
8.2.2.2 Special Consumption Tax (SCT)39

Different tax rates are applicable on four main product groups
under this category:
| Petroleum products, natural gas, lubricating oil, solvents and
derivatives of solvents: specific tax rates
| Automobiles and other vehicles, motorcycles, planes, helicopters, yachts: 1 percent to 84 percent
| Tobacco and tobacco products, alcoholic beverages: 25 percent
to 275,6 percent
| Luxury products: 6,7 percent to 20 percent
SCT is charged only once, unlike VAT which is applicable on each
delivery.
39
Invest in Turkey Chart of Principal Turkish Taxes

60
8.2.2.3 Banking and Insurance Transaction Tax

This tax is levied on banking and insurance company transactions (which remain exempted from VAT). Income earned by
banks, such as on loan interest, is subject to this form of tax.
Table 21: Tax Rates
Category
Rate (Percent)
General
Financial leasing services, etc.
18
Depends on the VAT
on the leased item
Basic foodstuffs, textile products, etc.

Certain agricultural products
8
1
Invest in Turkey
8.2.2.4 Stamp Duty

Stamp duty is levied as a percentage of the value of the document at rates ranging from 0,165% to 0,825%Taxes on Wealth
Taxes on Wealth40
These taxes are classified into three categories:
| Inheritance and gift taxes: 130 percent
| Property taxes
| Motor vehicle tax: revised annually
40
Invest in Turkey
61
Real estate tax is applicable to buildings and land owned in Turkey, at the rates given below:
| Buildings: 0.10.4 percent
| Land: 0.10.6 percent
8.3 Tax Incentives41
Tax incentives are offered on a varied basis for separate classes
of geographical areas and different sectors of expertise such as
R&D, educational corporations, cultural investments and enterprises. Special incentives are offered to the four categories of
special investment zones in Turkey, as explained earlier.
Explained below are the VAT exemptions inclusive of, but not
limited to the transactions listed below:
| Exports pertaining to goods and services
| Roaming services offered in Turkey for non-resident clients (i.e.
located outside Turkey), on a par with international roaming
agreements, with a reciprocity condition, duly in place
| All petroleum exploration ventures
| Global transportation
| Any delivery made to a diplomatic representative, consulate or
international organisation with a tax exemption status including their employees
| Supplies of machinery and equipment, inclusive of imports for
people or corporations that have valid investment certificates,
issued by the authorities concerned and also happening to be
VAT payers
| All services employed at airports or harbours for aircraft or
vessels
41
Invest in Turkey
62
| Deliveries made to governments or other related organisations

for health, cultural, educational and other services (social and
other exemptions)
| Banking and insurance transactions (subject to the Banking
and Insurance Transactions Tax 5 percent and hence exempted
from VAT)
| Earnings of corporations derived from their branches abroad or
both their domestic and foreign ventures, on meeting specified
criteria
| R&D allowances
| Corporations claiming expenditures pertaining to certain donations, aid or sponsorships for sports activities (entitled to
deductions from tax)
8.4 Investment Incentive System or Tax Incentives42
Turkeys Investment Incentive System comprises various tax incentive schemes, continuously amended to enhance investments
in manufacturing, services, energy, exports, etc. Both local and
foreign investors have equal access to the following schemes:
| General investment incentive scheme
| Incentives for large-scale investments
| Regional and sector-based incentives
| Incentives on employment
| R&D support
| Support for SMEs
| Industrial Thesis (SANTEZ) programme
| Loans for technical development projects
| Training support
| State aid for exports
42
Invest in Turkey
63
8.4.1 General Investment Incentive Scheme

This is mainly a tax benefit programme with some credit possibilities in particular cases. The investments vary, depending on
factors such as location, scale and subject of investment. The
major incentives are:
| Waiver of customs duties on imported machinery and equipment for projects possessing an incentive certificate
| VAT waiver on local purchase or import of machinery and
equipment for projects with an incentive certificate
8.4.2 Incentives for Large-Scale Investments
| For investments made before 31 December 2011, the corporate tax
rates applicable would be between 2 percent and 10 percent.
| For investments made after 31 December 2010, rates applicable
would be between 4 percent and 15 percent.
| Employers contribution towards the social security premium is
covered subject to a maximum of seven years for investments
started before 31 December 2011.
| Allocation of state land
| Investments are invited in sectors such as chemicals, oil, transit
pipeline services, automotive, railways, ports, electronics, pharmaceuticals and medicine, aviation, machinery and mining,
among others.
*Note: further details regarding this topic can be found here
8.4.3 Region- and Sector-based Incentives

| For investments made before 31 December 2011, the corporate tax
rates applicable would be between 2 percent and 10 percent.
| For investments beginning after 31 December 2010, rates applicable would be between 4 percent and 15 percent.
| Employers contribution towards social security premium is
covered subject to a maximum of seven years for investments
made before 31 December 2011.
64
| Allocation state land.

| Incentives are allotted according to different geographical
zones, with each zone inviting a specific type of industry.
| The industries include electronics, pharmaceuticals, machinery,
automotive, medicine, textile, paper, food and beverages, agriculture and agriculture-based manufacturing, plastics, rubber,
metal, tourism, health and education, among others.
| Some additional sectors are offered incentives, irrespective of
their geographical location.
These include investment types, covered by Special Organised
Industrial Zones which could profit from the region-based incentives, even if they are not among the sectors selected for
that region.
Investments on transportation of cargo and/or passengers by
sea/air may benefit in specific zones.
| Railway investments made by the private sector for cargo
and/or passenger transportation are subject to incentives in
all zones.
| Heating/Cooling investments on housing by implementation
of geothermal and/or power plant waste energy might benefit
from zonal incentives.
*Note: further details regarding this topic can be found here
8.4.4 Incentives on Employment

| An employers share of social security premiums for newly employed women and unemployed people aged 1829 years will
be reimbursed under Unemployment Insurance Fund for five
years, under terms and conditions applicable.
| The Treasury will also cover five points worth of the insured
persons disability, old age and death insurance premiums paid
by the employer.
65
| For additional employment, an employers share of social security premiums, based on the minimum salary, will be borne by
the Treasury for six months. The application period will expire
at the end of 2009 and only the Council of Ministers approval
could extend the application period up to another six months.
| Premium contribution support offered, is applicable to all new
hired employees along with the number of personnel as of
April 2009.
8.4.5 R&D Support

8.4.5.1 R&D Law
The R&D laws provide for special incentives in R&D investments
on the condition of a minimum number of 50 employees in an
R&D centre. These incentives are valid up to 2024 and include:
| Full tax waiver on R&D expenditure, only if over 500 researchers are employed and half of the increase in expenditure in the
current year over the past year is also eligible for exemption.
| Exemption of 50 percent of the social security premium for
employees for a duration of five years.
8.4.5.2 Technology Development Zones Support
| Office space with infrastructure facilities is readily available
for rent.
| Profits on software and R&D activities are exempt from income and corporate taxes until 31 December 2023. Deliveries
of software developed in the TDZs are exempted from VAT for
the same period.
| Salaries of researchers and employees in software and R&D units
in the TDZs dont need to have tax deducted until 31 December
2023.
66
8.4.5.3 TUBITAK and TTGV

TUBITAK (Scientific and Technological Research Council of Turkey) and TTGV (Turkish Technology Development Foundation)
help sponsor R&D related expenses and provide capital loans
for R&D related projects. Some eligible projects for TUBITAK
incentives are:
| Concept development
| Technological research and technical feasibility research
| Laboratory studies in the transformation of a concept into a
design
| Design and sketching studies
* Note: further details regarding TUBITAK and TTGV can be accessed from this Link
8.4.6 Support for SMEs

SMEs operate in industries such as manufacturing, agro-industry,
tourism, education, healthcare, mining, and software development. They must have fewer than 250 employees and an upper
limit on their annual revenue. Incentives for SMEs include exemption from customs duties and VAT exemption on imported
or locally purchased machinery and equipment. The Small and
Medium Sized Industry Development Organization (KOSGEB)
supports SMEs in Turkey through channels such as finance, R&D,
common facilities, market research, investment site, marketing,
exports and training.
*Note: further details regarding SME support can be accessed from this Link
8.4.7 Industrial Thesis (SANTEZ) Programme

This programme provides financial support for quality improvement, environmental modification, new technology adaptation
and process development projects with university partnerships.
The support includes the following:
67
| Direct grants could support as much as 75 percent of the

project budget.
| The project period is a maximum of three years and could be
extended further by up to six months.
| Laboratory analysis, test materials and equipment are supported
| The project supervision committee is independent in function and
the application file can be granted approval within four months.
8.4.8 Loans for Technology Development Projects
The Technology Development Foundation of Turkey (TTGV) provides long-term interest-free loans to help in technology development, energy efficiency improvement, renewable energy
production and environmental-impact-reducing projects. The
supports according to this scheme are provided below:
| The maximum contribution per project is 50 percent.
| The maximum budget per project is USD 1 million.
| The total pay-back period after project execution is four years,
including a one-year grace period.
8.4.9 Training Support
The National Recruitment Agency, ISKUR, provides support for
vocational training projects, subject to a maximum period of six
months. It offers the following:
| Interns and unemployed candidates registered at ISKUR are
provided direct salary support during the pre-employment
training period.
| All social security premium expenses for occupational accidents or diseases are covered by ISKUR.
| Programme expenses such as utility bills and trainers fees are
partially paid by ISKUR to the employer.
| A certain percentage of trainees must be employed after the
programme.
68
In addition, the Ministry of National Education supports the

following:
| The opening of vocational schools with the desired programmes, based on the ministrys decision
| General costs of a trainee team in every such high school for
each specific programme
8.4.10 State Aid for Exports
This scheme aims to encourage exports and enhance the competitiveness of organisations on the international front. This
mainly covers R&D activities, market research, participation in
exhibitions and international fairs, along with expenditures for
trademarks, patents and industrial design.
8.5 Double-Tax Treaty43
A Double-Taxation Prevention Treaty helps avoid double taxation
by offsetting the tax paid in one of the two countries against
the tax payable in the other. Turkey is a signatory to such a treaty
with many countries around the globe. For further countries,
draft agreements are at the discussion stages. A list of such countries with which agreements currently exist is given below (as
of April 2008).
Table 22: List of Countries having a Double Tax Treaty
With Turkey
Name of the COuntries
43
Albania
Algeria
Azerbaijan
Austria
Bahrain
Bangladesh
Belarus
Belgium
Bosnia-Herzegovina
Bulgaria
China
Croatia
Czech Rep.
Denmark
Egypt
Source: Worldwide-Tax.com - Turkey Double-Taxation Prevention Treaties

69
Name of the COuntries

Estonia
Ethiopia
Finland
France
Germany
Greece
Hungary
India
Indonesia
Iran
Israel
Italy
Japan
Jordan
Kazakhstan
Korea
Kuwait
Kyrgyz Rep.
Latvia
Lebanon
Lithuania
Luxemburg
Macedonia
Malaysia
Moldova
Mongolia
Montenegro
Morocco
Netherlands
Northern Cyprus
Norway
Pakistan
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Serbia
South Africa
Singapore
Slovakia
Slovenia
Spain
Sudan
Syria
Sweden
Tajikistan
Thailand
Tunisia
Turkmenistan
Ukraine
United Arab Emirates
UK
USA
Uzbekistan
World Wide Tax Turkey Double Taxation Prevention Treaties
Worldwide Tax Turkey Double-Taxation Prevention Treaties. The

Double-Tax Prevention Treaty also has provisions for exemptions
or reduced rates on receipts such as interest, loyalties, dividends,
capital gains and others connected by a transaction between
parties associated with the treaty. Any income taxable under the
Turkish Income Tax Ordinance, but exempted or reduced under
the Taxation Treaty is taxed according to the provisions of the
Taxation Treaty.
70
9 Appendix
Appendix I: Useful Links and Addresses
type of organisation
address
Ministries, Agencies and Services in Turkey

Embassy of the Grand
Duchy of Luxembourg
in Turkey
Reit Galip Caddesi 70/2

TR - 06700 Gaziosmanpaa Ankara
Ambassador Mrs. Arlette PaccoudConzemius
Email:ankara.amb@mae.etat.lu
Tel: +90 312 45 91 400
Fax: +90 312 43 65 055
Republic of Turkey Prime

Ministry Investment
Support and Promotion
Agency
Ankara (Headquarters)
kavaklidere Mahallesi akay
Caddesi no: 5
Cankaya 06640
Turkey
Email: info@invest.gov.tr
Tel: +90 312 413 89 00
http://www.invest.gov.tr/default.aspx
Ministry of Labour and

Social Security
Inn Boulevard No: 42 Emek

ANKARA, Turkey
Istanbul Stock Exchange
stanbul Menkul Kymetler Borsas

Reitpaa Mah. Tuncay ARTUN
Cd. EMRGAN 34467 STANBUL, Turkey
Tel: +90 312 296 60 00

http://www.calisma.gov.tr/en/
Email: international@imkb.gov.tr
Tel: +90 212 298 21 00
http://www.imkb.gov.tr/Home.aspx
Ministry of Foreign Affairs
Balgat, Ankara,
Turkey 06100
Tel: +90 312 292 10 00
http://www.mfa.gov.tr/default.en.mfa
Central Bank of The

Republic of Turkey
Istiklal Cad. 10 Ulus, 06100 Ankara,

Turkey
Email: iletisimbilgi@tcmb.gov.tr
Tel: +90 312 310 3646
http://www.tcmb.gov.tr/yeni/eng/
71
type of organisation
address
Turkish International Cooperation and Development

Agency
Atatrk Bulvar No:15 Ulus-Ankara

Turkey
Turkish Embassy in
Luxembourg
Ambassade de Turquie
49, Rue Siggy vu Ltzebuerg
L-1933 Luxembourg
GRAND-DUCHE DE LUXEMBOURG
Email: tika@tika.gov.tr
Tel: +90 312 508 10 00
http://www.tika.gov.tr/TR/
Email: ambtrlux@pt.lu
Tel: +90 352 44 32 81
Under-secretariat of The
Prime Ministry of Foreign
Trade
T.C. Babakanlk D Ticaret

Mstearl nn Bulvar
No:36 06510
Emek, Ankara, Turkey
Email: www@dtm.gov.tr
Tel: +90 312 204 75 00
http://www.dtm.gov.tr/dtmweb/
indexen.cfm
Istanbul Chamber of
Commerce
Istanbul Chamber of Commerce

Readiye Cad. 34112 Eminunu, Istanbul
Embassy of Turkey in
Belgium
Embassy of Turkey in Belgium

4, Rue Montoyer
Brussels, Belgium
Email: info@us-istanbul.com
http://www.ito.org.tr/wps/portal
Email: brussels@turk-konsolos.be
Tel: +32 2 502 3110
Tel: +32 2 502 5002
Embassy of Belgium in
Ankara, Turkey
Mahatma Gandhi
Caddesi, 55
Gaziosmanpaa
Ankara, Turkey
Email: Ankara@diplobel.fed.be
Tel: +90 312 405 6166
http://www.diplomatie.be/ankara/
Ministry of Industry and

Trade
Tel: + 90 312 219 65 00

Email: necmettinto@sanayi.gov.tr
http://www.sanayi.gov.tr/
Ministry of Finance
http://www.maliye.gov.tr/
72
The list of major banks covered under each subcategory*:

Total Banks (45)
Commercial Banks (32)
Banks Under the Deposit Insurance Fund (1)
Name
Web Address
Birlesik Fon Bankasi A.S.
www.fonbank.com.tr
Foreign Banks (17)

Foreign Banks Founded in Turkey (11)
Name
Arap Turk Bankasi A.S.
Web Address
www.arabturkbank.com
Citibank A.S.
www.citibank.com.tr
Denizbank A.S.
www.denizbank.com
Deutsche Bank A.S.

Eurobank Tekfen A.S.
Fortis Bank A.S.
HSBC Bank A.S.
ING Bank A.S.
www.db.com
www.eurobanktekfen.com
www.fortis.com.tr
www.hsbc.com.tr
www.ingbank.com.tr
Foreign Banks Having Branches in Turkey (6)

Name
ABN AMRO Bank N.V.
Bank Mellat
JPMorgan Chase Bank N.A.
Web Address
www.abnamro.com.com.tr
www.mellatbank.com
www.jpmorganchase.com
73
Privately-owned Commercial Banks (11)

Name
Web Address
Adabank A.S.
www.adabank.com.tr
Akbank T.A.S.
www.akbank.com.tr
Alternatif Bank A.S.

Anadolubank A.S.
Sekerbank T.A.S.
www.abank.com.tr
www.anadolubank.com.tr
www.sekerbank.com.tr
State-owned Commercial Banks (3)

Name
Turkiye Cumhuriyeti Ziraat Bankasi A.S.
Web Address
www.ziraatbank.com.tr
Turkiye Halk Bankasi A.S.
www.halkbank.com.tr
Turkiye Vakiflar Bankasi T.A.O.
www.vakifbank.com.tr
Non-depository Banks (13)

Foreign Non-depository Banks (4)
Name
Web Address
BankPozitif Kredi ve Kalkinma Bankasi A.S. www.bankpozitif.com.tr

Calyon Yatirim Bank Turk A.S.
www.calyon.com.tr
Merrill Lynch Yatirim Bank A.S.

Taib Yatirim Bank A.S.
www.ml.com.tr
www.yatirimbank.com.tr
Privately-owned Non-depository Banks (6)

Name
Web Address
Aktif Yatirim Bankasi A.S.
www.aktifbank.com.tr
Diler Yatirim Bankasi A.S.
www.dilerbank.com.tr
GSD Yatirim Bankasi A.S.
www.gsdbank.com.tr
74
State-owned Non-depository Banks (3)

Name
Web Address
Iller Bankasi
www.ilbank.gov.tr
Turk Eximbank
www.eximbank.gov.tr
Turkiye Kalkinma Bankasi A.S.
www.eximbank.gov.tr
*The above list is not exhaustive. For a detailed list of banks, kindly refer
to the website All About Turkey
75
10 Disclaimer
The Government of the Grand Duchy of Luxembourg declines
all responsibility regarding the use of information featured in
this document. The contents are provided for information purposes only. They contain information which is not necessarily
complete, exhaustive, precise or up to date. In the event of discrepancies between the texts of this publication and the original
documents, the original documents as officially published shall
apply. This publication may refer to external sites over which the
Government of the Grand Duchy of Luxembourg has no control
and for which it declines all responsibility.
76
77
78
may 2012
Luxembourg for Business

19-21 Boulevard Royal
L-2449 Luxembourg
Grand Duchy of Luxembourg
info@luxembourgforbusiness.lu
www.luxembourgforbusiness.lu
79

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Turkish Statistical Institute - Facts and Figures 2011 - December 2011

2 Modes of Setting up a Business in Turkey

An office of a foreign entity

Istanbul Chamber of Commerce Company Establishment and Registration

2.1 Incorporated Companies

2.1.1 Different Types of Companies6

Commandite Company: a Commandite Company is established

2.1.2 Steps to Establish a New Company9

Istanbul Chamber of Commerce Company Establishment and Registration

Figure 1 illustrates the major steps followed while establishing

Submission of the required documents and

Establishment of the Company

Registration at the tax office

Istanbul Chamber of Commerce Company Establishment and Registration

2.1.2.1 Documents Required to Set Up a Merchant Organisation

The notarised copy of or original Power of Attorney document

| The Chamber Registration Statement including photographs

| A petition bearing the signatures of the authorised persons

Istanbul Chamber of Commerce Company Establishment and Registration

2.2.1.1 Procedure for the Establishment of a Liaison Office

2.2.2.1 Procedure and Documents Required for the

Addressed: Sanayi ve Ticaret Bakanligi, I Ticaret Genel Mdrlg Eskisehir Yolu 7.

All the attached documents should be listed on the petition

2.3.1.1 Procedure to Set up a Joint Venture16

Istanbul Chamber of Commerce Article: Documents Required for Joint-Stock

2.4 Reforms in the FDI law17

| Both foreign capital companies located in Turkey and domestic

2.5 Average Time Required for Setting up a Business

Duration (number of days)

Cost (percent GNI per capita)

Minimum Capital Required

The World Bank Group - Doing Business Turkey 2012

Turkey follows a pro-business approach to attract FDI. The

Istanbul 2009 Turkey Turkish Business Environment August 2009

Figure 2 shows a comparison between the time and procedures

in Various Countries (June 2011)

Time Taken for Starting a Business

Procedures Essential for Starting a Business

3 Procedures for Immigration

Expat Forum.com Article: Turkey visa, permit and immigration

3.1.1 Overview of the Turkish Visa Policy

Table 3: Type of Visa and Length of Stay Permitted

Original signed passport

More than once

Original passport valid for 6

Source: Expat Forum.com Article: Turkey visa, permit and immigration

ABGS Legislation on Visa Policy and Practice February 2006

3.2 Procedure for Obtaining a Residence Permit 25

| If the government has denied a visa to a person, he/she also

| Five passport size photos

| A copy of the passport with the visa

3.3 Procedures for Work Permit26

| The last recorded annual turnover of the company or branch

| He/She should be responsible for managing the company or

If a person fails to comply with these conditions, he/she may

Information regarding the additional documents, required to

| The visa may be extended for a duration of three years on

Who will work independently

Turkish Statistical Institute - Facts and Figures 2009 - September 2009

4 Social Security System in Turkey

All about Turkey Article: Health Care in Turkey

4.1.2 Pension Fund for Civil Servants (Emekli Sandigi)