Business venture's for expats?

[peter the postie]

I'm interested to hear from expats who have sucessfully opened a business over in Turkey. Its something I'm working on at the moment, and I'd like to be aware of what is involved to make it all above board & legal.

So has anybody done it already & would care to share their experience with me?

 

[dalyansteve]

A very interesting question which I would also like the answer to, as I have a brilliant business opportunity that I have pitched to a couple of Turkish businessmen/friends and all they seem to be doing is dragging their heels.
I will be honest and say that I do not actualy want a Turkish partner but feel I need one because if the complexities of Turkish business.
The fact that you have not received a reply either speaks volumes or they are all too busy, it being the season.

 

[chelsea boy]

it's very difficult. the cost of the company alone bleeds your business dry..2000 ytl to set up....accountants, stopaj,vergi, ticaret odasi, bagkur...amounts to 600 per month before you do anything. It also takes 18 months to close a company down whilst still paying the above. And during this you are technically not allowed to work... no work permit! You have to pay not only wages to Turk workers but also their SSK which is about 250 per month. Only to find that you open a business that does well and someone sets up the same and undercuts you!
good luck to the pair of you!

 

[peter the postie]

Thanks for the replies guys. My god how on earth do businesses survive with such high overheads!

Its certainly not something I'd rush into without a lot of thought, and the points that Chelsea boy makes are quite scary alone!

 

[SuperBogs]

On top of that business sign tax is crazy...if it's a lit up sign the tax is twice as much as an unlit sign also. Electricity for a business is much more expensive then a residence per Kw. This one really gets my blood boiling....we have to pay business tax to the government, I can understand that...BUTTTTTTTTT....it's paid a year in advance. They use your last years profits and you pay the tax on that amount in advance for the next year....it's adjusted every year depending on if your business made more profit or not. I could go on.

Biker Bob

 

[Mack]

I agree with all the above sentiments, I have to have a Turkish company but dont do it unless you have no other option its a nightmare and like Bob says theres a list of things you dont find out till youre in the thick of it that would take pages to go over. Avoid if it all possible!

 

[dalyansteve]

Up until now,working with Turkish partners, I have just barely managed to live without all the above but I need to go in a new direction which involves import permits etc. so have to have a ltd company, I am not worried about competition as I will be dealing direct with the manufacturer and will have sole distribution for the whole of Turkey except Marmara region, I don't even want an office as I will be selling direct and the products will fit in my depot, any other staff will be paid per job and not employed directly.
Would you advise the use of a lawyer to set it all up or just do it through an accountant?

 

[SuperBogs]

Up until now,working with Turkish partners, I have just barely managed to live without all the above but I need to go in a new direction which involves import permits etc. so have to have a ltd company, I am not worried about competition as I will be dealing direct with the manufacturer and will have sole distribution for the whole of Turkey except Marmara region, I don't even want an office as I will be selling direct and the products will fit in my depot, any other staff will be paid per job and not employed directly.
Would you advise the use of a lawyer to set it all up or just do it through an accountant?

Not sure about what your trying to import but have you already had it cleared with the Turkish Customs? Do you have a imort export to assist you ( Turkish one that is)?

BB

 

[dalyansteve]

Yes already sorted thanks, I was going to have a Turkish partner but I am now thinking of doing it all myself, so the only piece of advice I need is about setting the company up, whether to use a lawyer or just an accountant? I also accept that I will have to go to Ankara and find an agent willing to get me through the import licence bit and having to pay for it. It is all a bit of a nightmare so any advice, good or bad, is gratefully received. I have already spent a lot of time and money researching the product and the market, I need to move forward quickly.

 

[Mack]

Hi Steve, personally I had a good accountant do all the work for me and he did a great job, no need for a lawyer, the procedures are simple enough just a beauracratic headache as usual . Just as an aside its a good idea to make a friend at the local Trade and Commerce office once the company is established too, they can pull lots of strings to speed things up for you in many areas if youre lucky.

 

[Chezbond]

You talk about an import license, the license depends on what you are importing of course, but, for example, if you were to import electronics then as long as they adhere to EU standards then from previous discussions with various people (Turks - Lawyers and Accoutants and Custom Brokers), you don't need a license if you have listed in your companies activities import activities.

If you don't want a Turkish partner, you will have to have at least one other foreign partner; and one or both of you, depending if you are both active, will have to apply to Ankara for work permits. There is an alternative though; set up a company in the EU and create a Satellite Office here...that's what a lot of companies do. It's easier on the restrictions and permits....

If you really want a Turkish company, then as some of the other commentators have mentioned, there are some extreme overheads and lot and lots of faffing around. Law is the law, but sometimes its application can take time and cost extra if you take my point.

Oh the delays, those damn delays...Oh I see that's what you wanted

 

[dalyansteve]

So Ok, where do I find info on setting up a satelite company here and what are the implications? I am already familiar with Uk and Eu company law. No I don't want all the pain and faffing about, I've had 11 years of it and anything legal in this country is a complete pain in the b*m.

 

[Mack]

Maybe a free zone company would be an easier (and more tax beneficial) option? Im not up on free zone legalities but I have a friend who has just opened up in Antalya free zone relatively quickly, If you need it I can ask the procedures?

 

[Chezbond]

Free zones are simply zones for the transit of goods. The goods haven't legally come into the country, but when they do they are party to the same import duties.

These duties vary depending on the country of origin. Everyone thinks that if stuff is made in China and transported to Europe and then into Turkey, that the import duties have to be paid. This is not the case as Turkey is part of the EU as far as import and export is concerned. So if the import duty has already been paid in the EU, then when it comes here, it doesn't need to be paid; legally, that is...

Steve, If I have it I'll drag up some old info on satellite companies...

 

[Chezbond]

Steve sent you a pm with a link...

 

[dalyansteve]

Thank you guys for the PM's. It is all a bit of a minefield is it not? My product can be legally imported with full EU certification for safety and origin and is not liable for duty only KDV. This I expected. I also think I understand Turkish company law!!!! But if anyone knows of a reasonable semi english speaking accountant in the Mugla region I would ,again, be very gratefull. I know this is asking a lot but I am prepared to travel and properly reimburse the accountant or lawyer. Robbing thingies that most of them are here!!!!

 

[Chezbond]

Hmm, now you're asking. Most accountants I have come across, outside Istanbul are not, imho, up to the job, they don't know half the basics when it comes to import/export, they run around making calls and providing different information on a daily basis. Still if you look hard enough!

I know some good lawyers in Istanbul and one reasonable one here (Fethiye), but he doesn't speak English so...Also when you set up a Turkish company you have to have the head office in the town that you register it, I'm pretty certain of that...but might be wrong. Anyway the town you register it is really where you want your accountants...

 

[Mack]

Also when you set up a Turkish company you have to have the head office in the town that you register it, I'm pretty certain of that...but might be wrong. Anyway the town you register it is really where you want your accountants...

You can trade from a registered office in a different province but the provincial laws from the region that the company is registered apply. I had my company registered in Fethiye and could trade fine from Antalya but I chose to move the company to Antalya for convenience (had I known the cost and hassle I wouldnt have bothered but thats a different story). Point is to check as there are some differences in procedures and paperwork between provinces. Good advice from Chezbond to use an accountant where the company is registered as they will know (ahem! SHOULD know) the local law variations .

 

[villaolivio]

I only know importing is a hell of a job.
We did it for our renovation project and i had to pay lots of taxes and extra costs and it took ages before it was imported and this were just simple things.

 

[soulmates2uk]

dont want to be a downer but one bit of advice dont tell anyone unless your sure of thier integrity as i know 2 seperate cases of people starting a buisiness and by time it came round someone was already doing it!