Trade License in Turkey: How to Start and Operate Legally
Turkey is an emerging market offering significant opportunities for local and foreign entrepreneurs. From its strategic geographic location to its growing economy, Turkey is a prime destination for establishing a business. However, like any other country, operating a business in Turkey requires legal formalities, including obtaining the necessary business licenses. This article provides a comprehensive guide on how to get a business license in Turkey, the requirements, costs, and the overall process to ensure you can start your business legally and efficiently.
Why a Business License is Important in Turkey
A business license is a legal document that grants the holder permission to operate a business within a certain jurisdiction. In Turkey, having the proper licenses is crucial for a business to function legally. Without the correct license, a company may face penalties, legal action, or even closure.
Types of Business Entities in Turkey
Types of Business Entities in Turkey
Before applying for a business license, it's essential to understand the different types of business structures you can establish in Turkey. The most common business types are:
- Sole Proprietorship: Owned and managed by a single individual.
- Limited Liability Company (LLC): The most common form for small- and medium-sized businesses.
- Joint Stock Company (JSC): Suitable for larger businesses with more shareholders.
- Branch Office: An extension of a foreign company operating in Turkey.
- Liaison Office: Established for market research or non-commercial purposes in Turkey.
Each type has its own set of requirements and regulations, so it's important to select the one that best suits your business objectives.
For more detail click the link of Business Entities in Turkey
Key Requirements for Obtaining a Business License
Obtaining a business license in Turkey is relatively straightforward but requires meeting certain legal, financial, and procedural requirements. These include:
1. Registering the Company
Before you can apply for a business license, you must first register your company with the Turkish Trade Registry. This includes selecting the company name, drafting articles of association, and submitting the necessary documents. Company registration is essential because it legally establishes the business entity.
2. Tax Registration
After registering your business, you'll need to register for tax purposes with the local tax office. This includes obtaining a tax identification number, which is mandatory for all businesses operating in Turkey.
3. Social Security Registration
After your business is tax registered, you will need to register with your local SGK office for your employees' social security. This includes obtaining an SGK ID number, which is mandatory for all businesses operating in Turkey.
4.Chamber of Commerce Registration
Depending on the nature of your business, you may also be required to register with the local Chamber of Commerce. This is particularly relevant for industries like trade, construction, and tourism.
5. Special Licenses and Permits
Some industries in Turkey require additional permits beyond the standard business license. For example:
- Food and Beverage: Restaurants, cafes and food production businesses must obtain a Standard Business Licence from local authorities for health and hygiene qualifications.
- Real Estate: The licenses that businesses
operating real estate brokers & Real Estate Appraisal must
obtain Certificate of Expertise in Real Estate
Appraisal and Real Estate Broker Licence
- Health Care: Businesses operating aesthetic, oral and dental health, and hair transplantation centers must obtain a Health Facilities License from the Ministry of Health in order to operate legally.
- Construction: In order to be engaged in construction, it is necessary to obtain a Building & Construction License from the Ministry of Environment and Urbanization of some of the local or metropolitan municipalities.
- Telecommunications: Businesses operating in Telecom, GSM and VoIP are required to obtain a GSM Operating License or Landline License from the Information Technologies and Communication Authority in order to operate legally.
- Import/Export: Businesses engaged in international trade may require additional customs licenses and permits.
- Tourism: Hotels, tour operators, and other tourism-related businesses must obtain Tourism Business Certificate or TURSAB Certificate from the Ministry of Culture and Tourism.
- Production: The Production Facility License that production companies must obtain in accordance with the Environmental Law includes at least one of the following: air emission, regime noise, wastewater increase and deep sea pollution.
Steps to Obtain a Business License in Turkey
Here's a step-by-step guide to obtaining a business license in Turkey:
- Company Registration:
- Choose the type of business entity.
- Draft and notarize the company's Articles of Association.
- Open a local bank account and deposit the required minimum capital.
- Submit all necessary documents to the Turkish Trade Registry.
- Tax Office Registration:
- Apply for a tax identification number.
- Register with the local tax office within 30 days of establishing your business.
- Chamber of Commerce Registration:
- Depending on your business activity, register with the local Chamber of Commerce.
- Obtain Special Licenses/Permits:
- Apply for industry-specific licenses if applicable, such as for food, tourism, or construction.
- Municipal Licensing:
- Most businesses also need to obtain a municipal business license, which ensures the business complies with local zoning and health regulations.
- Social Security Registration:
- Register with the Social Security Institution (SGK) if you plan to hire employees. This is mandatory and ensures your employees are covered under Turkey's social security system.
- Receive Business License:
- Once all necessary documents and permits are approved, you will receive your business license, which allows you to legally operate your business in Turkey.
Costs Associated with Obtaining an License
The costs associated with obtaining a business license in Turkey vary depending on the type of business and the sector in which you operate. Typical costs include:
- Standard Business Licence:$250
- Certificate of Expertise in Real Estate Appraisal:$1,000
- Real Estate Broker Licence:$750
- Health Facilities License: $500
- Building & Construction License:
$800
- GSM Operating License:$5,000
- Landline License:$4,500
- Tourism Business Certificate:$2,500
- TURSAB Certificate:$1,500
- Production Facility
License:$3,000
Timeline for Obtaining a Traade License
The entire process of obtaining a business license in Turkey usually takes between 1 and 3 months, depending on the complexity of the business structure and the industry. Some specialized permits can extend this timeline, particularly if additional regulatory approvals are needed.
Benefits of Getting a Business License in Turkey
- Legal Protection: Operating with a business license ensures that your company is legally recognized and protected under Turkish law.
- Access to Incentives: Licensed businesses in Turkey can benefit from government incentives, such as tax breaks, subsidies, and access to free trade zones.
- Credibility: A business license adds legitimacy to your operation, which can build trust with customers, partners, and investors.
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.