Opening a corporate bank account is one of the primary steps when setting up a business venture in Turkey. This step is essential for facilitating financial transactions, including the deposit of share capital (for Joint-Stock type companies), a prerequisite before formally registering the company.
In Turkey, both domestic and foreign enterprises must possess a business bank account to conduct market activities efficiently. Banks offer various account types tailored to individual needs, including those of foreign nationals holding a Turkish Residence Permit, and extend corporate banking services to accommodate business entities.
For foreign investors and entrepreneurs establishing companies in Turkey, corporate bank accounts are indispensable for several reasons:
- Deposit of Share Capital: Necessary during the company formation process.
- Payment Facilitation: Essential for making payments such as taxes and social security premiums.
- Financial Management: Enables efficient management of receivables and payables.
Steps to Open a Business Bank Account in Turkey
The first step to open a business bank account in Turkey is to obtain a tax identification number. To initiate the process of opening a corporate bank account, the following documents are typically required:
- The company's Articles of Association
- Certificate of company registration
- Certificate of tax registration
- Company seal
- Wet signatures of company representatives
- Residence Permit of representative(s) if they are based in Turkey
No Restrictions for Non-Resident Foreign Companies
It is important to note that there are no regulations restricting non-resident foreign companies from opening business bank accounts in Turkey.
This opens many opportunities for global foreign companies willing to do business in Turkey. Turkish banks can open accounts for these companies if the necessary documents are provided.
Please be aware that the company representative must be present at the bank branch at the time of account opening.
Benefits of Government Banks for Businesses in Turkey
Each company must maintain a business account with a government bank in Turkey, as taxes can only be paid through government banks. Government banks offer numerous advantages that are beneficial for businesses:
International Money Transfers
Government banks facilitate international money transfers, making it easier for businesses to conduct cross-border transactions. In some cases, these banks might be the exclusive method for transferring money to specific countries, such as Russia.
Special Conversion Rates
Businesses can qualify for special conversion rates on transactions exceeding 100,000 USD. This benefit can result in significant savings during currency exchange, making large transactions more cost-effective.
Direct Currency Conversion
Government banks offer direct currency conversion, allowing businesses to convert, for example, Rubles into Euros or USD without first converting them to Turkish Lira. This flexibility streamlines the currency exchange process and provides a significant advantage for businesses dealing with multiple currencies.
Open a Corporate Bank Account in Turkey
Turkish banks offer a diverse array of services, often tailored to meet the specific needs of their clients, whether individuals or business owners. Many of these services, including money transfers, ATM withdrawals, currency payments, and online banking, are typically provided free of charge,
Conducting transactions with a Turkish bank accounts is straightforward, whether online or in-person. However, it's essential to be mindful of the fees associated with various banking services to effectively manage costs and optimize financial operations.
Keep it in your mind
It is important to keep in mind that in Turkey cosporate bank accounts can also be set up through power of attorney.To accomplish this, you only need to grant power of attorney to a Turkish CPA.
FAQs About Corporate Bank Account in Turkey
How to open a company bank account in Turkey?
Opening a company bank account in Turkey involves several steps below, which can vary slightly depending on the bank you choose.
1- Choose a Bank
2- Prepare Required Documents
3- Visit the Bank
4- Complete the Application Form
5- Submit Documents
What's Steps to Open a Company Bank Account in Turkey?
Choose a Bank:
Research and select a bank that offers the services you need. Popular banks for business accounts in Turkey include Garanti BBVA, İş Bankası, Akbank, and Ziraat Bankası.
Prepare Required Documents:
The required documents can vary from bank to bank, but typically include:
- Company registration certificate: Proof that your company is registered with the Turkish Trade Registry.
- Tax identification number: Issued by the
Turkish tax authorities.
Articles of association of Company: Document outlining the company's structure and rules.
Board resolution: Document authorizing the opening of the account and specifying who has signing authority. - Identification documents of authorized
signatories: Passports and residency permits for foreign
nationals.
Signature circular: A document notarized in Turkey showing the signatures of those authorized to operate the account.
Proof of address: Utility bill or lease agreement for the company's registered address.
Visit the Bank:
You (or your authorized representative) will need to visit a branch of the chosen bank. Some banks may allow you to start the process online, but a physical visit is often required to complete the paperwork.
Complete the Application Form:
Fill out the bank's application form for opening a business account. The bank staff can assist you if you have any questions.
Submit Documents:
Submit all the required documents along with the application form. The bank will review the documents and may ask for additional information if necessary.
Initial Deposit:
Some banks may require an initial deposit to activate the account. This amount can vary depending on the bank and the type of account you are opening.
Account Activation:
Once all the documents are verified and the initial deposit is made, the bank will open the account. This process can take a few days to a week, depending on the bank's procedures.
Online Banking Setup:
After the account is activated, set up online banking services to manage your account remotely. The bank will provide you with login details and instructions.
Additional Services:
If needed, you can also apply for additional services like business credit cards, loans, or merchant services.
What's Advantage of Opening a Business Bank Account in Turkey
Ease of Financial Management
Opening a business bank account in Turkey allows for efficient financial management. With the ability to separate personal and business finances, companies can streamline their accounting processes, monitor cash flow effectively, and maintain accurate financial records.
Access to a Wide Range of Financial Services
Turkish banks offer a variety of financial products tailored to businesses, including business loans, credit lines, merchant services, and specialized accounts. These services help businesses manage their financial operations more efficiently and support growth and expansion.
Facilitating International Trade
A business bank account in Turkey makes international trade easier by providing facilities for foreign currency transactions, international wire transfers, and trade financing options. This is crucial for businesses engaged in import and export activities, ensuring smooth and efficient international transactions.
Tax & Social Security Premium Payments
in Turkey, businesses are required to pay all taxes and including social security premium & contributions.
The Turkish government has streamlined the tax and SS payment process, allowing taxpayers & employers to make their payments conveniently through banks.
While SGK payments are accepted by all banks, tax payments are only accepted by state banks (Ziraat Bank, HalkBank & VakifBank).
Enhanced Credibility and Professionalism
Having a dedicated business bank account enhances a company's credibility and professionalism. It helps build trust with clients, suppliers, and partners by demonstrating that the business is well-organized and financially responsible.
Availability of Investment and Savings Options
Turkish banks provide businesses with various investment and savings options, such as high-interest savings accounts, fixed deposits, and investment funds. These options enable businesses to grow their reserves and invest surplus funds efficiently.
Efficient Payroll Management
With a business bank account, companies can manage payroll efficiently by setting up automated salary payments, tax deductions, and employee benefits disbursement. This ensures timely and accurate compensation for employees, enhancing overall workforce satisfaction.
Support from Banking Advisors
Many Turkish banks offer dedicated business banking advisors who provide valuable financial advice and support. These advisors can help businesses navigate financial challenges, optimize their banking operations, and develop effective financial strategies.
Access to Digital Banking Solutions
Turkish banks are known for their advanced digital banking solutions, which include internet banking, mobile banking apps, and digital payment solutions. These tools make it easy for businesses to manage their finances on the go, monitor transactions, and perform banking operations efficiently.
Opening a business bank account in Turkey provides numerous benefits that support financial management, facilitate international trade, enhance credibility, and offer valuable investment opportunities.
Can Foreign Entities Open a Business Bank Account in Turkey?
Yes, foreign entities can open a business bank account in Turkey, and there are no regulations restricting non-resident foreign companies from doing so. This offers significant opportunities for global companies looking to establish or expand their business operations in Turkey.
Required Documentation
To open a business bank account, foreign entities must provide specific documentation. The typical requirements include:
- Certificate of Incorporation: Proof of company registration in the home country.
- Articles of Association: Governing documents outlining the company's structure and operations.
- Tax Identification Number: Obtained from Turkish tax authorities.
- Identification Documents: Passports or other valid ID for company representatives.
- Proof of Address: Utility bills or lease agreements showing the business address.
- Board Resolution: A document authorizing the opening of the bank account and appointing signatories.
Presence of Company Representative
- The company representative must be present at the bank branch during the account opening process.
- This requirement ensures the bank can verify the identity and authority of the representative, adhering to anti-money laundering (AML) and know your customer (KYC) regulations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.