Establish a Sole Trader in Turkey
Establish a Sole Trader in TurkeyUpdated on Thursday 26th January 2023
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The sole trader in Turkey, also known as the sole proprietorship, is a simple type of business establishment that does not require a minimum share capital and has fewer requirements for reporting than corporations.
Foreign investors in Turkey are treated the same way as national ones and are subject to the same requirements. Foreign entrepreneurs can be shareholders in locally incorporated companies. The only restrictions that apply are in a number of regulated sectors like energy, aviation, marine, or telecommunication. Our lawyers in Turkey can give you further information about the special laws and regulations for investments in Turkey.
Turkish sole proprietorships
The sole proprietorship in Turkey is suited for entrepreneurs who want to perform business and trade activities in their own name. This business form has a series of advantages in terms of less capital and reporting requirements, however, it is more suited for small businesses or consulting activities.
The sole proprietor is fully liable for the debts and obligations of his company and there is no distinction between the company’s assets and the personal assets.
According to the Turkish Commercial Code, the commandite company and the collective company are both business forms that may be used as sole proprietorships.
Interested in immigration to Turkey? This process can be simple and fast, as soon as you get the necessary visa, if necessary. In addition, our lawyers can manage the documents you need, to ensure a fast, simple and uncomplicated process. Also, our specialists can offer you support for obtaining a residence permit in this country. Therefore, we invite you to contact us and discover the legal services offered in this regard.
Requirements for sole proprietorships in Turkey
Individuals who decide to form a sole proprietorship in Turkey must register for trade or merchant activities with the Trade Register. This must be done prior to the commencement of the business activities.
Investors in Turkey have other business options, apart from the sole proprietorship. Partnerships, commandite partnerships, joint stock companies or limited liability companies are options suited for businesses of various types and size. Foreign corporations can choose to open a branch in Turkey from where they can conduct business activities in the country.
Other types of companies gave different requirements for set-up registration and minimum share capital, compared to the sole proprietorship. Please contact our law firm in Turkey for detailed information about laws related to company formation in the country.