Before establishing and running a business in a country, its business law and framework of regulation must be thoroughly understood. To do that in Turkey, which is an excellent market as it connects Europe and Asia, entrepreneurs must become familiar with the details of business law to ensure compliance, protect their rights, and enable long-term growth. For this reason, here is everything entrepreneurs need to know about business law in Turkey. If you need a qualified business lawyer in Turkey, you can contact Istanbul Lawyer Firm.
Legal Requirements for Starting a Business in Turkey
To start a business in Turkey, there are several legal requirements that entrepreneurs need to fulfill and business law to know. The specific requirements may vary depending on the type of industry and business. Generally, the legal requirements of business law in Turkey include:
- Establishing the Legal Framework: Firstly, you need to decide what type of business you need to start up. Common choices in Turkey are joint-stock companies, limited liability companies, and sole proprietorships. Keep in mind that each structure has different requirements.
- Decide on the Business Name: The name of the business should be compatible with the Turkish Commercial Code. Any name that is misleading cannot be accepted.
- Obtaining a Tax Identification Number: With this number, you can perform tax transactions.
- Compliance with the Employment Law of Turkey: The Employment Law in Turkey includes regulations on working hours, annual leaves, and wages. To hire employees, knowing employment law and its requirements is a must.
Taxation and Financial Regulations in Turkey
Those who want to start a business in Turkey should know the basics of taxation and financial regulations in Turkey, which are parts of business law. First of all, the system of taxation in Turkey is governed by the Tax Procedure Law. It regulates accrual principles, rights, responsibilities, and carrying out responsibilities. Besides, it involves all of the formal and procedural rules regulating tax laws. Taxation in Turkey can be divided into three main categories. These are:
- Income Taxes: There are two types of income taxes which are personal income tax and corporate income tax. Although they are both subject to different laws, both of them have similar regulations and requirements.
- Taxes on Expenditure: Value Added Tax (VAT) is applied to deliveries of services or products at rates ranging from 1% to 18%. Yet, it is usually 18%. On the other hand, Special Consumption Tax (SCT) is charged only once and is subject to petroleum-based products, tobacco products, types of vehicles, and luxury products.
- Taxes on Wealth: These taxes are divided into 3 different kinds. These are property tax, motor vehicle tax, and inheritance and gift tax.
For more information about business law in Turkey and to solve a taxation problem, you can contact our Turkish law firm, Istanbul Lawyer Firm. With our lawyers, who are qualified and fluent in English, we are ready to help you.
Employment Laws in Turkey
Turkish employment laws clarify both parties' rights and obligations and regulate the relationship between employers and employees. The two main laws that are applied by both foreign and local business owners who establish a company in Turkey and hire staff are Labor Law No. 4857 and the Trade Union Law.
The major goal of Labor Law No. 4857 is to govern employers' and workers' working conditions, as well as their work-related rights and obligations within an employment contract. In this regard, there are some aspects of employment law in Turkey that provide coherence and order. These are:
- Employment Contract: An employment contract is required for all employment relationships in Turkey, and all the necessary information like job description, working hours, and salary should be stated.
- Working Hours: In Turkey, the regular working hours are 45 hours per week.
- Annual Leave: In Turkey, based on the duration of service, employees have the right to paid annual leave.
Essential Resources for Entrepreneurs in Turkey
Turkey's entrepreneurial system is expanding and growing, and both aspiring and established businesspeople can access a number of crucial resources. Several funding options are available for entrepreneurs in Turkey in the scope of business law.
In Turkey, a number of organizations are dedicated to encouraging and supporting business ventures as well. For instance, the Turkish Entrepreneurship Foundation provides resources, training programs, and coaching for business owners. Besides, online platforms like LinkedIn and Facebook play a significant role for entrepreneurs in terms of jobs, startup events, and sharing knowledge and networks.
Governmental Resources for Entrepreneurs
To support business growth and entrepreneurship, the Turkish government offers a range of resources and assistance programs. For instance, the Ministry of Industry and Technology is in charge of Turkey's business and manufacturing affairs and supports entrepreneurship and industrial development in Turkey.
The Scientific and Technological Research Council of Turkey (TÜBİTAK) plays a significant role in promoting scientific research and technological development in Turkey. By offering funding programs, grants, and support for entrepreneurs and businesses, it aims to help technology-based startups and innovative projects. Also,if you want to start a new business and you do not have enough funds, you can take out loans from banks.
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