Registration of Companies in Türkiye

Turkey straddles Eurasia and is the end of the ancient Silk Road and the Asian Maritime Silk Road. It has a profound cultural accumulation, superior geographical location, beautiful natural scenery, is a classical and modern, east-west integration of the development of the magical country. For more than ten years, Turkey's politics, economy and society have developed steadily, and the investment environment has been improving day by day, which has been favored by foreign investors. In the World Bank's Doing Business ranking of 2,020 190 economies, Turkey rose to 33rd place from 43rd place in 2019. Turkey's agriculture, industry, service industry and other industries have perfect infrastructure, such as ports, airports, roads, railways, oil and gas pipelines, etc. According to the World Economic Forum & 2019 Global Competitiveness Report, Turkey is ranked 61st among the 141 most competitive countries in the world. Turkey has a total population of more than 83 million and a per capita of US $gdp9000. Its level of development is similar to that of China. Its people have strong consumption ability, advanced consumption concept and broad domestic market space. Turkey has established a customs union with the European Union, signed free trade agreements with 25 countries and regions, and has a high degree of market freedom. Turkey has become an important place for the dissemination of goods, services, people, capital and technology in the surrounding region. It can also become an important channel for Chinese enterprises to enter the huge potential market of neighboring 1.5 billion with a large population, a comprehensive GDP of 25 trillion US dollars, and an international trade volume of 8 trillion US dollars.

Table of Contents

Turkey's Business Environment Tax policies and preferences Turkey's Major Cities and Advantageous Industries Localization service capability Industry Solutions

Turkey's Business Environment

Macro Politics and Economics

turkey straddles Eurasia and is a member of the G-20. Its geographical location connects Europe, the Middle East and Central Asia. Its economy is known for manufacturing and automotive, textiles and clothing, logistics and trade, agri-food, IT and digital services.

With a population of about 85 million and a huge consumer market potential, Istanbul is one of the world's commercial and financial centers, with close ties to the EU Customs Union (for most industrial goods) and many free trade agreements.

Tax policies and preferences

Corporate Income Tax (CIT)

turkey's standard corporate income tax rate is 23%(2022-2023), but may fluctuate between 20% and 25% due to policy adjustments.

Value Added Tax (KDV)

the standard tax rate is 18%, and some goods or services (food, medicine, books, tourist accommodation, etc.) are 8% or 1% or 0%.

Free Zone Offer

in designated "free zones" (such as Istanbul/Aegean, etc.), export-oriented enterprises can be partially or fully exempted from income tax, value-added tax or customs duties as long as they meet the investment and employment requirements.

R & D and innovation incentives

additional tax credits are available for compliance research and development expenditures for science and technology development zone (Teknopark) projects, as well as social security and income tax relief (for a certain number of years).

Capital gains and dividends

capital gains at the corporate level are included in CIT; personal dividends or capital gains are usually taxed at a rate of 15%-20%% depending on the income category; double taxation agreements reduce cross-border double taxation.

Social security and employment subsidies

the employer's social security is about 20.5-22.5 per cent of the wage base (including pensions, health insurance, unemployment, etc.), and the employee's social security is about 14 per cent.

double taxation agreement

turkey has signed double taxation agreements with more than 80 countries (including China, Germany, Italy, etc.) to provide tax relief for cross-border investment and profit distribution.

EU Customs Union

turkey has signed a customs union agreement with the European Union, imposing zero tariffs on most manufactured goods; agricultural products and some sensitive goods are not fully covered, but its manufacturing industry has a major advantage in connecting with the EU market.

Turkey's Major Cities and Advantageous Industries

bursa of fabricius

status: Industrial and auto parts clusters in northwestern Turkey, as well as textile and home appliance industries, active logistics and trade

• Main industries: auto parts and machinery, textiles and clothing, home appliances manufacturing, logistics and warehousing

we cover: Zhuoxin Enterprise cooperates with Bursa Industrial Park to provide landing, foreign engineer visa and Eurasian supply chain for auto parts or textile enterprises.

Istanbul

status: Turkey's largest city and financial and commercial center across Eurasia with world-class ports and logistics centers

• Major Industries: Finance and Insurance, Logistics and Trade, IT and Digital Innovation, Textiles and Apparel, Tourism and Culture

Zhuoxin Enterprises cooperates with investment promotion agencies and technology incubators in Istanbul to provide solutions for financial and service enterprises, international trading companies, etc.

Ankara

status: The capital of Turkey, political and administrative center, bringing together government institutions and defense industry, with numerous institutions of higher learning, dedicated to research and development in IT and science and technology.

• Major industries: Government and administration, defense and aviation industry, IT and digital R & D, education and research

Zhuoxin Enterprise: Assist defense or IT enterprises to connect visas for foreign employees in Ankara Industrial Park and link government subsidies to research and development projects.

Izmir

status: Aegean port cities, manufacturing and foreign trade, tourism, agriculture and food processing industry developed

• Major industries: port logistics and trade, manufacturing and machinery, agro-processing, tourism and vacation

we cover: Assisting Zhuoxin enterprises in Izmir or agri-food enterprises to apply for duty-free zone concessions, foreign manager visas and connections to the Aegean and Central and Eastern European markets.

Localization service capability

relying on localized resources, we will create industry-specific registration and landing solutions for you.

Market access consulting for

analysis of Turkey's corporate law, foreign investment law, foreign equity restrictions, customs unions and free trade agreements.

registration and fiscal compliance in

for company registration (commercial registration, tax number), enterprise income tax (23%, up and down), value-added tax (18%) declaration, annual examination, research and development awards or tax-free zone concessions

Bank Account and Visa

business or work visa (foreign employee permission) from Turkish/international banks (e. g. Ziraat, İşbank, Garanti, etc.)

Industry and government resources

contact with investment türkiye (investment promotion agency), local chambers of commerce, industrial/science and technology parks, etc. to apply for subsidies or joint ventures

Follow-up business support

financial outsourcing, human social security (pension, medical insurance), contract and legal affairs, license renewal, customs and import and export procedures.

Industry Solutions

relying on global resources and professional teams, Zhuoxin provides tailor-made cross-border expansion solutions for industries such as technology, green economy, cross-border e-commerce, and manufacturing. From registration compliance to operational support, the entire process has helped the company steadily enter the international arena.

Agricultural Food

requirements: Establishment of food or agricultural processing plants, HACCP and hygiene permits, foreign administration visas; Turkey-EU agricultural tariffs, VAT and export declarations; local raw material supply and regional distribution.

How can we help: HACCP approval + foreign management visa, docking Turkish farm/fishery resources; Handling VAT and import and export procedures, striving for agricultural or sustainable development subsidies; Expand domestic and surrounding markets, supermarkets/e-commerce.

Finance and Shared Services

requirements: Establishment of a banking or insurance SSC center to provide visas for foreign financial professionals; AML/KYC and Turkish Financial Regulatory (BRSA,CMB) compliance; Dividend and Interest Cross-Border Tax Optimization (DTTs).

How we help: Designing financial/insurance SSC structures, applying for Turkish banking or capital market regulatory licenses; foreign actuary and compliance officer visas, AML/KYC system construction; reducing cross-border tax burden through bilateral tax associations.

Tourism and Culture

needs: Launching cultural and holiday tourism in Istanbul and the Mediterranean coast (Antalya, etc.), OTA, multilingual customer service and foreign managed visa are required; cooperation with local tourist boards and global marketing; VAT and accommodation/airfare tax compliance.

How we can help: Apply for a tourist business license and connect with platforms such as Bookin g/Trip.com; Visa for foreign managers, set up a multilingual customer service system; Contact the Turkish Tourism Board for international promotion and VAT/accommodation tax.

Automotive & Machinery

requirements: location of industrial park or free zone, foreign engineer visa, equipment import tariff relief; docking to the Eurasian automotive or machinery supply chain; or social security relief (depending on the nature of the project).

How we help: Settle in an industrial zone such as Bursa/Izmir and get local tax relief; Visa for foreign engineers, VAT and customs compliance; Apply for R & D or free zone concessions and integrate into the Eurasian vehicle/machinery network.

IT Outsourcing

requirements: company registration, foreign IT staff visa, GDPR and Turkish data protection compliance; multilingual customer service, euro/lira payment system; local IT talent recruitment and social security management.

How we help: Istanbul registered company + foreign programmer visa; data protection and remote service integration for EU and Middle East clients; recruitment and social security processing, potential it talent tax/social security relief.

Logistics and E-commerce

demand: set up warehousing and customer service in Izmir or Istanbul Port Free Trade Zone, foreign operation visa; VAT and customs declaration, Eurasian cross-border distribution; expand the Balkan and Middle East e-commerce market.

How we help: Handle free trade zone entry, business visa VAT compliance; Integrate Turkish and EU e-commerce/logistics partners; Multilingual customer service and payment system construction