Invoices issued from abroad are converted into Turkish Lira at the Central Bank of the Republic of Turkey’s foreign exchange buying rate as of the date the actual import took place (the closing date of the customs declaration) and recorded in the legal books. Exchange rate differences arising from fluctuations in foreign exchange rates on payment dates or at the end of periods must be reported as foreign exchange gains or losses in accordance with tax regulations.

If you are exporting goods under a customs declaration, taxpayers registered in the e-Invoice system are required to issue an “e-Export Invoice”—which is directly integrated with the Ministry of Customs and Trade’s system—instead of a standard invoice. Invoices issued in the incorrect format may cause customs procedures to be suspended and lead to increased logistics costs.

Yes, you are absolutely required to do so. The fact that the buyer company belongs to you does not change this requirement. Under the Turkish Currency Protection Regulations, it is a legal requirement that the proceeds from exports be repatriated to Turkey within 180 days of the actual date of export at the latest. In addition, a certain portion of the repatriated foreign currency must be sold to the Central Bank and converted into Turkish Lira under the Export General Directive. If this process remains unresolved, tax offices will initiate legal proceedings.

No, exports of goods are exempt from tax under the VAT Law, and your invoice will be issued with “Zero (0) VAT.” However, the real benefit begins here: You are entitled to a refund from the Ministry of Finance for the VAT you paid (incurred) in Turkey to produce or procure these exported goods.

No, you cannot. Just as with imports, the "Transfer Pricing" rules apply to transactions between related entities (your own companies) in exports as well. The sale price of the goods must be consistent with the price charged to other independent buyers in the market (arm’s-length price). Exporting goods at a price lower than the comparable price is interpreted as transferring your Turkish company’s profits abroad tax-free (disguised profit distribution) and results in serious tax penalties.

No, it is not a direct cost. The VAT on imports that you pay at customs can be claimed as a deduction on your company’s monthly VAT return in Turkey. In fact, depending on the nature of your business (for example, if you process these goods and re-export them), you have the right to request a refund of any carryover VAT that cannot be offset through deductions—either in cash or by setoff—provided you submit technical reports in accordance with the relevant regulations.

If young entrepreneurs aged 18–29 become taxpayers under the Bağ-Kur system for the first time, a certain portion of their annual income is exempt from income tax for three years. The Bağ-Kur premium exemption has been abolished for applicants who apply after December 31, 2025. All young people who have not previously been registered as taxpayers and who are actively working in their own business are eligible. Provided that you retain control over the management and operation of your business and meet the other conditions specified in this provision, working as a salaried employee at another workplace or employing an assistant does not prevent you from benefiting from the income exemption for young entrepreneurs. (Ruling No. 62030549-120[MÜK.20-2016/1097]-75068 dated March 16, 2007)

Effective January 1, 2026, newly established companies are required to use the e-Ledger and Electronic Commercial Ledger System (ETDS). In addition, paper invoices have been completely phased out. The transition to e-Invoice and e-Archive systems may become a legal requirement depending on your annual revenue and the sector in which you operate (e.g., e-commerce, real estate, motor vehicles). However, even if you are not legally required to do so, we can immediately facilitate your transition to e-Transformation on a voluntary basis during the establishment phase to help you eliminate paper invoice costs, enhance your reputation, and streamline your processes.

Timeframes vary depending on the type of company. Thanks to our digital infrastructure and e-signature processes, sole proprietorships are typically established and ready to issue invoices within 1 to 2 days, depending on the workload of the registration officer. For Limited (LTD) and Joint Stock (A.Ş.) companies, the MERSIS, Chamber of Commerce, and notary approval processes are typically completed within an average of 4 to 5 business days.

Even if you never issue an invoice, companies still have legal filing obligations. A VAT Return (stamp tax is due even if no invoices are issued) and a Withholding Tax/Summary Return must be filed monthly. In addition, the company owner’s Bağ-Kur (SGK) contributions must be paid. Provisional Tax returns are filed every three months, and at the end of the year, either a Corporate Income Tax return or an Annual Income Tax return is filed, depending on the type of company.

If the space you are renting is not used for direct retail sales, invoicing, or receiving customers, it is much more advantageous to select statuses such as "Warehouse," "Liaison Office," or "Showroom" (Exhibition Hall) instead of “Branch.” The Chamber of Commerce registration fees and procedures for warehouses or liaison offices are significantly less burdensome than those for branches. By analyzing the actual intended use of the premises, we determine the registration type that will result in the lowest legal costs for you.

No, you do not need to be physically present in Turkey. Thanks to our digital infrastructure and the power-of-attorney process, we can manage company formation procedures, tax office registrations, Chamber of Commerce registrations, and banking processes remotely from start to finish.

No, this is one of the most common mistakes and carries the heaviest penalty. According to SGK regulations (Construction, Fishing, Agricultural Work, employees working on vehicles operating in foreign countries, and those submitting an Initial Workplace Declaration for the first time are exceptions), the employee’s social security enrollment declaration must be approved in the system no later than one day before the date the employee is scheduled to begin work. For notifications submitted on the day the employee starts work or later, an administrative fine equal to the minimum wage is imposed for each employee.

Yes, you certainly can. Owning a sole proprietorship does not constitute a legal obstacle to holding shares in other corporations or serving as a signatory in those companies in your capacity as a director or board member. The legal and financial entities of the two companies operate completely independently of one another.

Yes, even if you have limited taxpayer status, real estate capital income (rental income) earned within Turkey’s borders is subject to tax. However, the thresholds for filing a tax return vary depending on whether the property is a residence or a business premises, whether withholding tax has been applied, and the annual exemption amounts. To avoid potential penalties, it is essential to regularly monitor this process online.

Yes, you absolutely must. Even if you are not undertaking the construction for commercial purposes (build-to-sell), you are legally considered an “employer” because workers (carpenters, formwork workers, painters) will be physically working on that construction site. Before starting construction, you must submit a workplace declaration to the Social Security Institution (SGK) to open a file and register those workers as insured in accordance with the minimum labor ratios. Otherwise, you will not be able to obtain an occupancy permit.

If you are importing goods using your own personal or company vehicle rather than through an international logistics company, transportation costs will also be taken into account when calculating the customs value of the goods. In addition to the value of the goods, the customs authority will include the comparable transportation cost for your vehicle on that route in the taxable base (CIF value). Therefore, to avoid unexpected costs at the customs checkpoint, you must plan the process in advance with our customs consultants and financial advisors before your trip.

Under the Labor Code, an employee must have worked at that workplace for at least one full year (including the probationary period) to be eligible for annual paid leave. Employees who have not completed one year of service are not legally entitled to annual leave. The duration of leave varies depending on the employee’s seniority at the workplace: • For those with 1 to 5 years of service (including 5 years): 14 days • For those with more than 5 years but less than 15 years of service: 20 days • For those with 15 years (inclusive) or more: 26 days (Important Exception: The annual leave granted to employees aged 18 and under, as well as those aged 50 and over, cannot be less than 20 days.)

The government has established a mathematical rule to prevent the employment of unregistered (uninsured) workers on construction sites. In summary, the Social Security Institution (SGK) states: “To construct a building of this size and quality, by law you must have employed (and paid premiums for) at least this many insured workers.” If the total labor cost you report to the SGK during the construction period falls below this “minimum” threshold set by the government, the SGK will collect the premiums for the difference from you as a penalty.

Incentives are not applied automatically; they are entered into the system upon request and with the approval of the employer or financial advisor. Furthermore, the eligibility criteria for incentives vary by employee. Government incentives (e.g., incentives for women, young people, people with disabilities, or additional hiring) vary based on the employee’s age, gender, unemployment status over the past 6 months, and your company’s current number of employees. Before hiring an employee, we use our legal software to analyze their Turkish ID number and identify the most profitable incentive for your company.

Medical expenses incurred by employees due to a work-related accident and their wages for the days they are on sick leave (disability benefits) are covered by the Social Security Institution (SGK). However, the SGK asks the following question in such cases: “Did this accident occur due to the employer’s failure to take occupational safety measures or due to negligence?” If the accident is found, based on inspector reports, to have resulted from the employer’s fault or negligence, the SGK will recover all hospital expenses and sick pay it paid to the employee—plus interest—from the employer (you) through a “recovery action.”

No, since branches do not have separate legal personality, no separate corporate or income tax return is filed for them. The income earned and expenses incurred by the branch are consolidated directly into your parent company’s accounts and reported to the government on a single tax return. The Tax Office simply records your branch’s address in your registry and ensures it appears as “Branch Address” under your parent company’s tax registration.

All businesses that operate in a physical location and sell retail goods or services to end consumers (individuals who are not businesses) are required to use Next-Generation POS systems. The sectors most commonly required to use them are as follows: • Supermarkets, corner stores, kiosks, and retail stores • Restaurants, cafes, bakeries, and takeout establishments • Hair salons, beauty salons, and barbershops • Car washes, dry cleaners, and auto repair and maintenance services • Parking lots and pharmacies that sell retail goods

In sole proprietorships, the money in the company’s cash account is legally the same as your personal funds; you can withdraw and use the profits on which you’ve paid taxes at any time without incurring any additional tax. However, in limited liability companies and corporations, the money in the company’s cash account belongs to the company’s legal entity. If you wish to transfer this money to your personal account as a “dividend,” the company must pass a resolution at its general meeting, and a withholding tax must be deducted from this payment and remitted to the government. Depending on the amount of the dividend withdrawn, you may also be required to file an Annual Income Tax Return.

According to customs regulations, the customs exemptions granted to travelers (such as the 430-euro limit) apply only to items “intended for personal use or as gifts.” If the items you bring in your luggage or vehicle are in commercial quantities or of a commercial nature (for example, bringing a large number of the same product with the intent to sell them), you are absolutely not eligible for the traveler exemption. These goods must be declared as commercial goods at the customs checkpoint and are subject to normal import (customs clearance) procedures, including payment of customs duties, excise tax (if applicable), and import VAT. Attempting to bring them through without declaration will result in the goods being seized under smuggling laws and lead to severe criminal penalties.

This poses a serious risk, especially for property owners with a large number of rental properties. Even if your tenant withholds tax from the rent, the process remains incomplete if they do not report this to the tax office via a summary tax return. As part of our digital financial advisory services, we regularly monitor your tenants’ withholding tax returns through financial systems, verify that your taxes have been paid, and coordinate legal notifications on your behalf to protect your tax obligations in the event of any potential deficiencies.

The profits earned at year-end by the various limited liability companies or joint-stock companies in which you hold a stake are subject to corporate income tax. When these companies distribute profit shares (dividends) to your personal account, the company withholds 10% as a withholding tax and pays this amount to the government. However, your personal tax liability may not end there. If the total gross amount of the net dividends you receive from various companies exceeds the Annual Income Tax filing threshold set for that year (for example, 230,000 TL for 2024), you must personally file an Annual Income Tax Return in March of the following year. The withholding taxes paid by the companies on your behalf are credited against the calculated tax.

Timing is everything here. According to the Labor Code and Social Security Institution (SGK) regulations, the employer is required to report any workplace accident to the SGK within 3 business days of the accident at the latest. (If the accident results in serious injury or death, it must be reported to law enforcement immediately.) Failure to file a “Workplace Accident Report” within the 3-day legal deadline results in an administrative fine for the employer calculated as a multiple of the minimum wage.

According to tax office records and your tax registration certificate, every company must have one "Primary NACE Code" (primary area of activity). This code is generally determined based on the business sector in which the company expects to generate the most revenue or in which it will initially operate. However, we can easily list your other business activities on your tax registration certificate as “Supplementary NACE Codes” (secondary activities). A tax registration certificate can include up to six supplementary activity codes.

This calculation is specific to each construction project and is based on three key factors: 1. Total Construction Cost: The total square meter area of the building is multiplied by the “unit construction cost per square meter” set by the Ministry of Environment and Urbanization for that year. 2. Minimum Labor Rate: This is the rate determined by the Social Security Institution (SGK) based on the building class (e.g., 12% for masonry buildings, 9% for reinforced concrete frame buildings). 3. 25% Institutional Discount: If you have submitted your reports regularly throughout the construction period, the SGK applies a 25% discount to this specified labor rate (e.g., the 9% rate is reduced to 6.75%).

Yes, you can. Neither Turkish citizens living abroad nor foreign investors are required to come to Turkey. Using a “Power of Attorney for Company Incorporation” issued by a Turkish consulate in your country or through apostilled documents, we manage all your registration, tax office, and banking procedures digitally from start to finish on your behalf.

• Breastfeeding Break (for Mothers): Female employees are entitled to a 1.5-hour breastfeeding break each day until their child reaches the age of 1. The female employee herself determines exactly when during the day this 1.5-hour break will be taken and how it will be divided. Breastfeeding leave hours are considered worked hours, and no deductions may be made from the employee’s salary. • Paternity Leave (For Fathers): Male employees whose spouses have given birth are legally entitled to 10 days of paid paternity leave upon the child’s birth, and this period cannot be deducted from annual leave.

Yes, you can. There is no legal obstacle to establishing a company in your own name or becoming a partner in another company while working under an employer under the 4/A (SGK) system. Furthermore, as long as your 4/A insurance coverage continues uninterrupted, you will not be required to pay additional Bağ-Kur (4/B) premiums simply because you are a company partner. This situation provides a significant cost advantage for entrepreneurs who wish to start their own business while working as a salaried employee. (However, you cannot list yourself as a 4/A-covered employee in the company you establish.)

A retail receipt or invoice obtained from abroad is not sufficient on its own for goods to be added to your company’s legal inventory in Turkey and subsequently sold after being invoiced. The Customs Declaration (or customs collection receipt) issued in your name or your company’s name following the commercial declaration of the goods at customs serves as legal proof of import. Without these customs documents, you cannot record the goods in your company’s accounting records, recognize them as costs, or sell them. If goods are found to have entered inventory through illegal means, severe penalties for tax evasion will be imposed.

Yes, it does, but there are very strict legal requirements. The labor hours reported to the Social Security Institution (SGK) by subcontractors to whom you’ve outsourced work on your construction project—such as electrical, plumbing, excavation, and painting—count toward your “total labor” target. However, for this to happen, the subcontractor must open its own “Subcontractor File” (subcontractor file) under your main SGK file and report its own workers through that file. Simply receiving a materials invoice does not reduce your labor ratio; what matters is that the subcontractor officially lists workers at that construction site.

This is a program through which the government covers a portion (or all) of the Social Security contributions that employers are required to pay, with the aim of reducing unemployment and supporting employment. When the appropriate incentive laws are applied (e.g., Laws No. 6111, 7103, or the 5% discount under Law No. 5510), you can achieve massive reductions—ranging from 20% to 100%—in the monthly SGK contribution costs you pay to the government for each employee. This translates to significant cash remaining in your company’s coffers.

This depends entirely on your business objectives. If you plan to issue invoices directly in Turkey and engage in commercial activities, you must establish a branch or a limited liability company (LLC) or a joint-stock company (JSC). However, if your goal is solely to conduct market research and not engage in commercial activities, establishing a Liaison Office would be a more strategic move due to its tax advantages. A detailed financial analysis is required to determine the model that best suits your needs.

Yes, it is a legal requirement to provide an official business address (notification address) when establishing a company in Turkey. Pursuant to the Turkish Commercial Code (TTK) and the Tax Procedure Code (VUK), the company must have a legal headquarters (kanuni merkez). The “inspection” (audit) conducted by the tax office to approve the company’s establishment, as well as all official notifications in subsequent processes, are sent to this address. Without an official address, registration with the Chamber of Commerce or the tax office cannot be completed. However, this address does not necessarily have to be a physical storefront or a large office in the traditional sense. Depending on their business model, entrepreneurs can choose from the following legal address alternatives: • Virtual Office: This is the most ideal and legally valid method, particularly for those who do not require a physical space, operate digital businesses, or manage companies from abroad. Virtual office providers offer you a legal mailing address, and tax office inspections are legally accepted at these addresses. • Co-working Space: This is an option that provides both a legal address and meeting/workspace facilities for those who need flexible access to a physical workspace. • Home Office: If the nature of the work allows (e.g., software development, consulting, e-commerce), your residence can be listed as a legal business address. However, if you are a tenant, your lease agreement must not contain a clause prohibiting the use of the residence as a workplace. • Traditional Physical Business Premises: These are standard commercial spaces leased for businesses that require direct retail, manufacturing, or storage operations. In summary, the government will always require you to provide an official address, but the way you provide this address is quite flexible thanks to today’s digital solutions.

As a general rule, employment incentives do not cover the net salary received by employees, but rather offset or reduce the employer’s Social Security contributions and tax deductions paid to the government. (As an exception, salary support is also provided in the On-the-Job Training Programs administered by İŞKUR.) Thanks to these incentives, the gross cost of employees decreases, thereby reducing the company’s total employment expenses.

This decision depends entirely on your growth goals. If you want to create a new brand or completely isolate legal and financial risks, it makes sense to establish a new company. However, if you want to start operations in Antalya or a completely different region while maintaining your existing corporate identity—for example, if your headquarters is in Ankara—opening a “branch” is the most practical and cost-effective option. Branches are legally affiliated with your parent company; this means your existing capital, past financial statements, and bank credit lines remain fully valid at your new location.

Legally, you can operate both under a single corporate umbrella; this keeps your setup and monthly fixed costs low (single accounting system, single tax return). However, if you want to ensure that the commercial risks associated with the restaurant do not affect your software business, or if you have branding strategies, plan to apply for KOSGEB sector-specific incentives, or anticipate the possibility of selling (transferring) one of the business lines in the future, establishing two separate companies is a much more forward-thinking move.

This depends entirely on the amount of annual profit (income) your company will generate. Sole proprietorships are subject to the Income Tax Law and are taxed using progressive tax brackets; that is, as your profit increases, your tax rate rises from 15% to 40%. Limited liability companies and corporations (capital companies), on the other hand, are subject to the Corporate Income Tax Law, and the corporate income tax rate remains fixed regardless of how high your profit is. If your business volume and profit expectations are high, capital companies become much more advantageous in terms of tax optimization.

If you do not want your branch to maintain its own accounting system independently of headquarters, there is no requirement to keep separate books. Your company has a single set of legal books (Journal, General Ledger, Inventory), and all of the branch’s transactions are recorded in the headquarters’ books. Thanks to our modern e-Ledger systems and cloud-based digital financial reporting infrastructure, no matter where in Turkey you open a branch, we manage all your accounting operations from a single central location.

Under the Turkish Commercial Code (TTK), there is no legal limit on the number of sectors in which a company may operate. The “ultra vires” rule—which, under the previous law, required companies to conduct only the business activities specified in their articles of association—has been repealed. Consequently, with a company you establish, you can simultaneously operate in completely independent business sectors—such as construction, e-commerce, and IT consulting—provided that such activities are legal and legitimate.

This depends entirely on the employee’s length of service and the “termination code” (reason for termination). First, the employee must have completed at least one full year of service at that workplace. Second, if you, as the employer, terminate the employee without just cause or for reasons such as downsizing, you are required to pay severance pay. However, if the employee resigns voluntarily or if you terminate the contract for just cause due to conduct that violates ethical and good-faith principles (such as theft or absenteeism), no severance pay is owed. These processes must be legally documented with written records.

This decision depends entirely on your spending and property situation. If the interest, insurance, and maintenance and repair costs you pay for your home in Turkey are high, choosing the “Actual Expenses” method—with supporting documentation—will significantly reduce your tax burden. However, if you do not have any expenses to document, it is more advantageous to choose the “Flat-Rate Deduction” method and take advantage of the fixed-rate deduction provided by law.

Imports into Turkey are subject to customs duties and VAT on imports based on the origin of the goods and the Customs Tariff Statistical Position (GTIP) code. However, the key issue to consider here is “transfer pricing.” The prices applied in transactions between your own companies (related parties) must be in line with arm’s-length prices (market value). Otherwise, you may face penalties on the grounds that the tax base has been eroded.

No. We can draw up a "Part-Time Employment Contract" for your employees who work on specific days of the week or only a few hours a day. With this written contract, you report to the Social Security Institution (SGK) only the total number of hours the employee actually worked (converted to days) and pay premiums only for those days. This way, you avoid incurring the full monthly SGK costs unnecessarily.

Under the Labor Law, female employees are entitled to a total of 24 weeks of statutory maternity leave—8 weeks before childbirth and 16 weeks after. (In the case of multiple pregnancies, an additional 2 weeks are added before childbirth.) If the employee’s health permits and she receives a “fit to work” certificate from her doctor, she may continue working at her workplace until 3 weeks before the due date. In this case, the 5 weeks of leave she did not use before giving birth are not forfeited; they are automatically added to the 16 weeks of post-birth leave (for a total of 21 weeks to be used after giving birth).

Yes, it counts. A workplace accident isn’t limited to accidents that occur inside a factory or office. An accident your employee suffers during a client meeting to which you sent them on your behalf, a traffic accident they experience while commuting to work in a company vehicle you provided, or an accident a female employee suffers during her breastfeeding break are all legally classified as “work-related accidents.” The Supreme Court interprets this matter very broadly in favor of the employee.

Absolutely not. The "golden rule" for employers to be eligible for SGK incentives is that you must not have any overdue statutory premium or tax debts to the government. In months when you have outstanding debts, the system automatically suspends the incentives, and you will be required to pay all contributions at the full rate (the highest ceiling).

The biggest misconception among entrepreneurs is assuming that incentives are applied automatically. The SGK system does not automatically classify any employee as eligible for incentives. Every month, when payroll is calculated and the MUHSGK (Monthly Premium Declaration) is submitted to the government, it is necessary to manually select and report which employees are eligible for incentives under which law numbers. Using our advanced software, we perform a monthly incentive scan for all your employees based on their Turkish ID numbers and apply the law code that will provide the highest discount to your payroll.

This is one of the most common scenarios in business. If you purchase a product at a low VAT rate and sell it at a high VAT rate, the difference (VAT Paid) appears as a tax liability to the government at the end of the month. In the opposite scenario—that is, if you purchase inputs (raw materials/services) at a high VAT rate (20%) and sell them at a low VAT rate (1% or 10%)—you accumulate a VAT credit with the government. This situation is referred to as “carryover VAT.” In accordance with legal regulations, we handle the necessary technical reporting on your behalf so that you can recover this accumulated VAT from the government either as a cash refund or by offsetting it against other tax liabilities (VAT Refund).

If you conduct business exclusively through e-commerce (via websites or marketplaces) and do not offer in-person pickup or sales at a physical store, you are not required to purchase a Next-Generation POS device. You process your e-commerce payments using “Virtual POS” infrastructure and issue e-Archive or e-Invoices digitally to your customers.

This is one of the mistakes for which employers pay the most in compensation. Sending your employees to another branch—whether in the same city or a different one—is considered a “Substantial Change in Working Conditions” (Article 22) under the Labor Code. If the new branch to which you are transferring the employee significantly increases their commute time, raises their travel expenses, or makes their social life more difficult, you must obtain the employee’s written consent. If the employee does not accept this change, you cannot force them to transfer; if you do, the employee may resign with “just cause” and receive severance pay.

According to Article 75 of the Labor Law, every employer is required to maintain personnel files for the workers they employ. Simply obtaining a photocopy of an ID has no legal significance. In the absence of a pre-employment medical report, a signed employment contract, inventory receipts, and leave forms, you will be unable to prove your case in the event of a potential employee complaint or a Social Security Institution (SGK) audit. The personnel file is your only legal defense in court.

No, during this period, your obligation as an employer to pay wages is legally suspended. While a female employee is on maternity leave, her wages (commonly referred to as “sick pay”) are paid directly by the Social Security Institution (SGK) under the name “Disability Allowance.” However, for the SGK to make this payment, the employee must have had at least 90 days of SGK contributions paid within the last year prior to the birth.

Yes, you can. If your line of business does not require a physical store or workshop (for example, if you’re in e-commerce, software, consulting, or digital marketing), you can designate your home as a “Home Office” and use it as your legal business address. Alternatively, you can also set up your company using low-cost “Virtual Office” contracts, which have become quite popular and are legally recognized in recent years.

According to current legal regulations, businesses throughout Turkey with 5 or more employees are required to pay all forms of compensation to their staff (salaries, bonuses, incentives, severance pay) exclusively through a bank. Although cash payments are permitted for workplaces with fewer than five employees, for the sake of ease of proof and legal certainty, we recommend that all salary payments be made via bank transfer under all circumstances, with accurate descriptions (such as “May 2026 Salary”).

No, you are not required to. If all of your sales are made to other tax-registered companies (wholesale) rather than to end consumers (individuals), and you document these sales directly via invoices (e-Invoice / e-Archive), you are not required to use a New Generation Cash Register POS, as you do not engage in retail sales. You may use a standard bank POS or a virtual POS for your collections.

There is no legally mandated minimum capital requirement for sole proprietorships. The minimum incorporation capital for limited liability companies is set at 50,000 TL, and for joint-stock companies, it is 250,000 TL. It is important to note that there is no requirement to pay the capital upfront when establishing a limited liability company; the committed capital may be paid within 24 months from the date of incorporation.

If you plan to operate in different fields, the “Purpose and Scope” clause of the company’s articles of association should be drafted very broadly and comprehensively to avoid incurring additional registration costs and wasting time in the future. As for your company name, there is no need to list all activities individually; simply specifying your primary activities in the name (for example, “ABC Information Technology, Construction, and Foreign Trade Limited Company”) will be sufficient and convey a sense of prestige. We tailor this legal framework specifically to your business vision during the incorporation phase.

A Joint-Stock Company (A.Ş.) is definitely the most advantageous structure. In joint-stock companies, if “stock certificates” are issued, any capital gains you realize from selling these shares after holding them for two full years are fully exempt from income tax, regardless of the amount. In limited liability companies or sole proprietorships, however, this exemption does not apply to the transfer of shares or the sale of the business; significant tax liabilities may arise on the gains realized. Angel investors and funds also always prefer joint-stock companies due to their legal safeguards.

In Turkey, three different VAT rates generally apply to products and services sold: 1%, 10%, and 20%. • 1% VAT: Applies to basic food items (flour, water, meat, milk, etc.) and certain agricultural products. • 10% VAT: Applies to textile products, clothing, footwear, food and beverage (restaurant) services, and certain health and medical products. • 20% VAT: Cosmetics, technology, home appliances, furniture, automotive parts, consulting services, and all general commercial products fall under this category. We analyze the exact VAT rate for your product based on the HS (Harmonized System) code and current Ministry of Finance circulars, and integrate it into your accounting system without errors.

No, it definitely does not reset. Employees’ greatest fear is that “their entitlements will be forfeited due to being transferred in and out,” but the Supreme Court of Appeals addresses this situation based on the principle of “Organic Link Between Group Companies.” When transferring your employees between your own branches or companies, even if you process their exit and re-entry in the Social Security Institution (SGK) system using the “transfer” code, all of the employee’s seniority and notice period compensation rights are transferred in full to the new company or branch, effective from the first day they started work. To protect the legal rights of both parties during these transfer processes, we specifically prepare the necessary “Seniority Transfer and Consent Agreements.”

Yes, you are required to do so. According to legal regulations, it is a legal obligation for all employees who are Turkish citizens and under the age of 45 to be enrolled in the Individual Pension System (BES) through their employers. If your employees say, “I don’t want to participate in BES,” this does not eliminate your legal obligation. As an employer, you are first required to automatically enroll all eligible employees in the system and make the initial deduction; employees may then opt out of the system on their own initiative.

If your company’s primary business activity (as listed on your tax registration certificate) is not staffing or subcontracting, you cannot assign your own insured employees to another company by issuing an invoice. In such transactions, subcontractor-principal contractor agreements must adhere to very strict legal regulations, and Social Security Institution (SGK) notifications must be filed through a sub-file (agent number) opened under the relevant company’s umbrella. Otherwise, in the event of a workplace accident, all legal and criminal liability will fall on you.

This is the most critical aspect of choosing a business structure. In sole proprietorships, there are no limits; you are personally and unlimitedly liable for your business’s debts with all your personal assets. However, in corporations and limited liability companies, the partners’ liability for commercial debts is “limited” to the amount of capital they have committed to the company. (Regarding public debts such as taxes and Social Security contributions, partners in limited liability companies are liable in proportion to their capital shares, whereas in corporations, only members of the board of directors are liable; ordinary partners have no liability for public debts.)

This is the most critical financial aspect of operating in multiple sectors. Under tax legislation, the requirements for transitioning to e-Invoicing and e-Ledgers are sometimes determined based on total revenue and sometimes directly based on the “sector in which the business operates.” For example, even if your total revenue is still below the legal threshold, if one of your additional activities involves online sales (e-commerce) or real estate/motor vehicle sales, the requirement to switch to e-invoicing may suddenly apply to you.

Yes, you can convert it. The Turkish Commercial Code (TTK) and the Corporate Tax Law permit changes in company type (Change of Legal Form). Thanks to the tax-free transfer (transfer “as is”) mechanism, you can transfer all the assets and liabilities of your sole proprietorship (inventory, fixed assets, bank accounts) to a newly established Limited Liability Company or Joint-Stock Company without incurring any tax liability, enabling seamless growth as you transition to a corporate structure. We manage this conversion process end-to-end with our technical reporting services.

If SGK inspections reveal that your business employs unregistered (uninsured) workers or that someone who does not actually work at that workplace is listed as a “fictitious insured employee,” you will be completely barred from the incentive program for one year. Furthermore, all incentive rebates provided to you by the government up to that point will be recovered from you, along with late payment interest. To help you avoid such legal disasters, we manage all your hiring processes in full compliance with the regulations. The construction sector is the area where SGK regulations are enforced most strictly and where contractors face the most “surprise” penalties. In particular, the “SGK Minimum Labor” threshold that must be met to obtain an occupancy permit (building use permit) from the municipality upon project completion can result in tens of thousands of liras in extra premium payments if not properly planned.

Yes, it is very likely that you (the employer) will again be found at fault. The employer’s responsibility is not merely to provide the employee with a hard hat or mask, but to monitor their use and ensure compliance. If an employee refuses to wear protective equipment, you should not allow them to work that day, and you must document the situation and initiate disciplinary proceedings (including termination, if necessary). The defense that “I provided the equipment, but they didn’t wear it” will not absolve the employer of liability in court.

No. According to our social security legislation, regardless of how many companies a person is a partner in, there is only one Bağ-Kur (4/B) obligation. The social security system is individual-based; therefore, by paying just a single Bağ-Kur premium, you fulfill the legal insurance requirement for all your companies. Additional partnerships do not increase the amount of the premium you are required to pay.

By law, annual leave must generally be taken as a single, uninterrupted period. However, annual leave may be split provided that both the employee and the employer mutually agree. There is a single, definitive legal rule regarding this division: At least one portion of the leave must be taken as a continuous period of at least 10 days. The remaining days (for example, the remaining 4 days) may be taken in increments of 1 or 2 days, as agreed upon by the parties.

This depends on your business model and the type of product you sell. For the sale of used cell phones or used motor vehicles (car dealerships), VAT may be paid solely on the profit earned under the “Special Tax Base” system, provided certain legal requirements (Authorization Certificate, etc.) are met. However, if you buy and sell standard used goods (such as used computers or furniture), the VAT rate applicable to your sale is generally the same as the rate applied to the product when it was new.

Desk-based office jobs generally fall into the "Low-Risk" category. For workplaces in the "Low-Risk" category with fewer than 50 employees, the requirement to have an OSH specialist and an occupational physician through an OSGB (Joint Health and Safety Unit) has currently been postponed. However, the requirements to conduct a Risk Assessment, prepare an Emergency Action Plan, and provide Basic OSH Training to staff remain in effect even if you have only one office employee. Failure to have these essential documents in place could result in you bearing full liability in the event of an accident.

Since you have limited tax liability status, the tax rules differ for residential and commercial properties. If your residential rental income exceeds the statutory exemption amount for the relevant year, you must file an Annual Income Tax Return (GMSİ). If your business property rental income exceeds the filing threshold, you are required to file a return. If it does not exceed the threshold, the withholding tax paid by the tenant is considered your final tax, and you do not need to file any other return.

No, the incentive program does not apply to all employees; it is subject to very specific mathematical and legal conditions. The most important rule is the “Additional Employment” rule. This means that the person you hire must be hired as an “addition” to your company’s average number of employees in the previous months (usually the last 6 months). Additionally, the candidate must be registered as unemployed with İŞKUR and must not have been employed with social security coverage in recent months. Incentive periods and amounts are significantly higher for the employment of women and young people (ages 18–29).

The right to annual leave does not expire or reset by law. If an employee does not take their leave that year, those days continue to accrue in the employee’s leave balance. It is mandatory to record the use of annual leave via the “Annual Leave Form” or “Leave Log” with the employee’s handwritten signature. In the event of termination, the employee must be paid for all accrued and unused leave days, calculated based on their final gross salary.

Even if you are legally the owner of both companies, in the eyes of the Social Security Institution (SGK) and the Labor Law, these two companies are “two completely independent employers.” If an employee is insured under Company A but is actually working at Company B, you will face a penalty for “employing uninsured (undeclared) workers” at Company B in the event of an SGK audit. The legal way to resolve this situation is to enter into a “Temporary Employment Agreement” with the employee and obtain their written consent. Alternatively, you must formally process the employee’s SGK deregistration from Company A and their SGK registration with Company B (while transferring their seniority rights).

There are no legal restrictions regarding corporations (limited liability companies and joint-stock companies). An individual may be the founder of as many limited liability companies or joint-stock companies as they wish, may later become a shareholder by purchasing shares, or may serve as a member of the board of directors. However, the situation is different for sole proprietorships; an individual may establish only one sole proprietorship (as a natural person taxpayer) using their Turkish ID number. (It is possible to open multiple branches under the same tax number with different activity codes.)

No, you cannot. According to the Labor Code and Supreme Court rulings, annual leave is a “constitutional right to rest,” and an employee cannot waive this right even if they wish to. While the employee continues to work, the right to annual leave cannot be converted into cash (the money paid does not serve as proof that the employee used their leave in any future lawsuit they may file). Annual leave pay may be paid only upon the employee’s departure from the job (termination of the contract), based on the calculation of any unused leave remaining as of that date.

If you apply a VAT rate lower than the legally required rate to your product or service, the Ministry of Finance will consider this a “tax loss.” If this is detected, the government will demand payment of the underpaid VAT difference from you, along with late payment interest; on top of that, it will impose a “Tax Evasion Penalty” equal to the amount of the underpaid tax, as well as a penalty for procedural irregularities. Our digital accounting systems lock your product records with the correct VAT rates during setup, thereby completely eliminating human errors in operational processes.

Export transactions are fully exempt from VAT under our tax laws. In other words, when you sell your product to a customer abroad, you issue your invoice with 0% VAT. The great thing is that you can claim a refund from the government for all VAT you paid domestically to produce, package, or source this product under the “Export Exemption.” For our companies engaged in cross-border e-commerce (e-export), we design end-to-end digital refund processes.

Yes, it makes a significant difference. In the business world, limited liability companies and, in particular, corporations are considered much more prestigious, institutional, and enduring structures compared to sole proprietorships. Banks find the financial statements of corporations much more reliable during credit approval processes, while government agencies do the same in tenders. The company’s legal designation (including the “LTD.” or “A.Ş.” designations) directly enhances your brand value and credibility in the market.

No, this is a very critical distinction in terms of labor law and potential penalties. Even if the accounts are consolidated with the tax office, under SGK regulations, it is a legal requirement to obtain a new “Workplace Declaration” from the Social Security Center in that region and open a new, independent SGK Registration Number (file) for each new branch you open (since it has a different address). The hiring of branch staff and the submission of monthly contribution reports (MUHSGK) are coordinated digitally by us through the branch’s own SGK file.

Yes, you are required to use this system for retail customers who enter your store and wish to pay by card. However, with advancing technology, the Ministry of Finance has launched the "Secure Mobile Payment and Electronic Document Management System (VUK 507)" application. If you use software compatible with this infrastructure, you can process card payments via your smartphones or tablets and issue e-Archive/e-Invoices directly, thereby avoiding the cost and requirement of purchasing a physical point-of-sale terminal. We’ll work with you during the setup phase to plan the most suitable and cost-effective digital payment infrastructure for your business.

No, according to the law, the residential rental income exemption is applied only once per person, not per property. No matter how many residential properties you own in Turkey, your total rental income from all of them is aggregated, the exemption amount is deducted once, and taxation is applied to the remaining taxable income.