How to Establish a Sole Proprietorship in Turkey: Step-by-Step Guide
When you want to start your own business in Turkey, establishing a sole proprietorship (single-person company) can be an attractive option. Sole proprietorships have become a popular choice among entrepreneurs due to their low costs and straightforward operation. So, how do you establish a sole proprietorship in Turkey? Here’s our step-by-step guide:
Step 1: Define Your Business Idea and Plan
Every business venture begins with a solid business idea and plan. Here’s what to consider in the first step: • Business Idea: Determine the type of business you want to engage in. Focus on your skills, experiences, and areas of interest. • Business Plan: Create a detailed business plan outlining your business goals, marketing strategies, revenue-expense projections, and growth plans.
Step 2: Choose and Examine Your Business Name
Your business name is an important element that represents your business and reflects your brand identity. Consider the following in this step: • Uniqueness Check: Ensure that the chosen business name is unique. You cannot select a name that is already registered or in use according to the Turkish Commercial Code. • Business Name Declaration: You might need to submit an official business name declaration to the relevant Trade Registry Office, specifying your business name and activity area.
Step 3: Prepare the Necessary Documents
You’ll need to prepare certain documents for the business setup: • Copy of Identification Document: Copy of the owner’s national identity card. • Signature Declaration: A document containing the owner’s signature, required for cases that need notarization. • Business Name Declaration: A declaration including your business name and activity area. • Application for Tax Identification Number: You might need to apply to the Tax Office to obtain a tax identification number.
Step 4: Business Registration and Announcement
To register and announce your business, you need to apply to the Trade Registry Office: • Trade Registry Office Application: Apply to the relevant Trade Registry Office to register your business. • Announcement in Trade Registry Gazette: Your business registration might need to be announced in the Trade Registry Gazette.
Step 5: Tax Procedures and Registration (Continued)
• Tax Office Application: After obtaining your tax identification number, complete your business registration by applying to the Tax Office.
• Tax Declarations: You’ll need to regularly submit income and expense declarations according to tax periods.
Step 6: Accounting and Financial Management
Regularly managing accounting processes is essential for tracking your business’s financial health:
• Accounting Services: It’s crucial to keep regular accounting records and prepare financial statements by availing accounting services.
• Income and Expense Tracking: Keep track of your business’s income and expenses to manage your budget effectively.
• Financial Planning: Plan your business’s financial future by creating income-expense projections.
Conclusion Establishing a sole proprietorship in Turkey requires step-by-step progression and adherence to local legal regulations. As a business owner, continue to manage your business’s financial health, adhere to legal requirements, and strive to maximize growth potential.
In this article, you can find the basic steps for establishing a sole proprietorship in Turkey. However, keep in mind that local regulations can change over time. It’s important to consult with the relevant authorities to obtain up-to-date information before establishing your business.
What is the Cost of Establishing a Sole Proprietorship in Turkey? For aspiring entrepreneurs, establishing a sole proprietorship is a preferred method due to its low costs and simplicity. However, while setting up a sole proprietorship, you might incur costs such as notary fees, accountant’s power of attorney, and business opening fees. This article breaks down the cost of establishing a sole proprietorship in Turkey step by step.
Sole Proprietorship Signature Declaration (Notary): 272-395 TL If a designated person will represent your business, you might need to have their signature authority notarized. This procedure formalizes the powers of the individual authorized to sign on behalf of your business. The fee for the sole proprietorship signature declaration varies based on the notary’s fee schedule and local notary policies, typically ranging from 272 TL to 395 TL on average.
Accountant’s Power of Attorney (Notary): 490-520 TL If you plan to work with an accountant during the process of establishing your sole proprietorship, you might need to prepare an accountant’s power of attorney. This document grants the accountant the authority to manage your business’s financial transactions. The fee for arranging an accountant’s power of attorney can vary between 490 TL and 520 TL on average, depending on the notary’s fee schedule and regional factors.
Independent Certified Public Accountant (CPA) Business Opening Fee: 500-850 TL Approx. During the process of setting up a sole proprietorship, you might need to work with an independent certified public accountant (CPA). This professional manages your financial transactions and ensures compliance with legal requirements. The fee for opening a business account with an independent CPA can vary based on the service quality, experience, and region. Generally, you might encounter a cost ranging from 500 TL to 850 TL.
Tax Office Inspection Fee: Variable Once your transactions are completed by the accountant, a tax office inspector will visit your business location to verify your business’s activities. This inspector prepares an inspection report to confirm your business’s operation. The tax office inspection fee can vary based on the region and your business’s activity area.
Conclusion The cost of establishing a sole proprietorship in Turkey can vary depending on factors such as notary fees, accountant’s power of attorney fees, and business opening fees. These costs are expected to range between approximately 1,300 TL and 1,860 TL in total.
Note: All monetary values are given in Turkish Lira (TL) and are approximations based on available data at the time of writing. It’s recommended to verify the current costs with local authorities and professionals before proceeding.