Turkey

Operating a business

Setting up a company

Legal business entities

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
The Limited Sirket is a limited liability company.	2 partners minimum. 50 maximum.	500 million TRY, fully paid up at its constitution	Liability is limited to the amount of capital contributed.
The Anonim Sirket is a public limited company.	5 partners minimum	5 billion TRY minimum, fully paid up at its constitution	Liability is limited to the amount of capital contributed.
General partnership	2 partners minimum	A capital base must be set up, but no minimum amount is required.	The liability which is on the partners is joint and indefinite.
Individual company	1 person	The notion of capital does not exist. The assets of the company are merged with those of the head of the company.	The businessman is indefinitely liable for the professional debts on the whole of his assets.
General partnership (SCS) or joint-stock company (SCA)	The SCS - SCA is made up of two distinct categories of partners: the active partners and the silent partners.	SCS: Contrary to joint-stock companies (SA, SAS, SCA), no minimum capital is required to constitute an SCS.The partners decide freely the amount of capital to be paid up at the constitution. SCA: The same rules as for an SA.	The silent partners are the shareholders of the company, and are only liable for debts according to the amount of capital they have contributed. The shares are registered. The silent partners' assembly follows the same rules as in a public limited company (SA). The active partners have the status of traders, and are appointed by the silent partners. They are indefinitely and jointly liable for debts on their own property.

Business setup procedures: The articles must be drawn up by notarial deed and approved by the Ministry of Industry and Commerce.The registration of the company must be carried out after the Ministry's approval at the Register of Commerce in the place where the company has its headquarters. For further details, click here.
The competent organization: The Chambers of Commerce and Industry in each region where the headquarters of the company have been set up::
Istanbul (ITO) ; Izmir (IZTO) ; Bursa (BTSO) ; Ankara (ATO)

Working conditions

Legal weekly duration: 45 hours. For further details concerning work regulations, click here.
Retirement age: 50 for women and 55 for men.
Working contracts: The work contract is first and foremost governed by individual negotiation.
The formality of the work contract and the conditions of dismissal are rigid. Dismissals have to be justified only if the number of employees in the firm is more than 30.

Cost of labor

Minimum wage: 305 EUR / month
Average wage: This data is nonexistent and irrelevant in Turkey. A salary is very variable according to the town, the function, the sector of activity, the company, age, experience, etc.
Social contributions: Social security contributions paid by employers: 19.5 %.
Social security contributions paid by employees: 14%

Social partners

Bargaining power: In general, the power of the unions is not at all strong.
Unions: DISK
Hak-Is
Turk-Is
KESK
BASK
Unionization rate: The unionization rate in Turkey is quite low. The unions are stronger in the public or semi-public sectors.
Labor regulation bodies: Ministry of Labor
Employers' confederation
Employers' confederation