From recruiting skilled talent to forming new business relationships around the world, the benefits of expanding are vast. However, you can’t start to realize these benefits until you learn how to set up a Türkiye subsidiary.

That’s where G-P can help. As a global Employer of Record (EOR), we have subsidiaries around the world that you can leverage to expand quickly and compliantly. We’ll handle all Türkiye subsidiary laws, streamline payroll, and help you build your team, so you can focus on your day-to-day business.

How to set up a Türkiye subsidiary

Setting up a Türkiye subsidiary involves several important considerations before diving into the process. First, we recommend researching several areas in Türkiye for your physical office. Different regions or cities can have different Türkiye subsidiary laws that impact how easy or difficult it will be to incorporate.

Next, you need to look at the different entities you can use for the Türkiye subsidiary setup process. The country’s commercial code allows 5 main structures, including a joint stock company, limited liability company (LLC), collective company, commandite company, or cooperative company. Many companies register as an LLC — this structure protects your parent company and subsidiary from each other’s actions.

The steps to set up your Türkiye subsidiary as an LLC include:

  • Submitting articles of association for both the parent company and the new entity.
  • Creating copies of passports for all managers of the subsidiary.
  • Signing a declaration from the managers showing that they accept their new positions.
  • Purchasing commercial books through the subsidiary’s representative.
  • Opening a local bank account and depositing minimum share capital.
  • Notarizing all documents and submitting them to the Turkish Trade Register.
  • And more.

Türkiye subsidiary laws

Türkiye’s subsidiary laws will change based on the type of entity. For example, LLCs need at least TRY 50,000 in minimum share capital to incorporate. You’ll also need at least 1 founder or shareholder, who can be a natural person or legal entity, to register the company. Shareholders are limited in liability based on how much they contribute.

A limited liability company may have up to 50 shareholders, and shareholders generally do not face nationality restrictions. A single foreign shareholder can also generally form an LLC. LLCs must have 1 or more managers. Managers may be appointed in the articles of association or later by the shareholders’ general assembly. Board members generally do not have to be physically present for meetings. They may attend and vote remotely if the company’s articles of association allow electronic meetings and Turkish Commercial Code requirements are met. Since LLCs have many of the same freedoms as a resident company, you’ll need to comply with Turkish accounting rules. Annual financial statements must generally be prepared and used for tax filings, but ordinary LLCs are not usually required to publicly file them with the Trade Registry unless special audit or regulatory obligations apply.

Benefits of setting up a Türkiye subsidiary

Incorporating in Türkiye will give you the freedom and flexibility to operate as if you were a native company. When you incorporate as an LLC, you won’t have to worry about your parent company incurring any liability from the subsidiary, and the subsidiary can operate using its own independent structure.

While these benefits are great for your company, you won’t start to realize them until your company registration in Türkiye is finalized, which can take months. If you fail to follow all of Türkiye’s subsidiary laws, you could also face fines or delays.

Other important considerations

Choosing to expand on your own requires time, money, and the help of an expert. It can take between a couple of weeks to a couple of months to expand, which is before you can handle any other expansion tasks. You’ll also need to set aside time and money to travel back and forth to Türkiye to find a company location, recruit employees, and more. Finally, it’s best to seek out the advice of an expert to make sure you stay compliant with Türkiye’s subsidiary laws.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Request a proposal to learn more about how we can streamline the global growth process.