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Registry

Registry and establishment are considerably simplified after that Direct Foreign Investments Law took effect and following the amendments in Trade Law and some other laws. Complicated and time-consuming procedures for both local and foreign investments are removed and the steps are decreased to the following:

Registry of the Company

Trade Registration

Documents below must be delivered to Trade Registry Office (Documents requested may vary according to if partners are natural or legal entities)
• Company main contract approved by notary
• If capital is paid by the partners during establisment, payment receipt from bank
• Bank receipt indicating payment made to Protection of Competition Fund at the amount of four per ten thousand of the promised capital.
• Signatory circular and passport copies of persons who have authority to represent and bind the company (certified copy of id card and certificate of residence)

Photos and passport copies of real person shareholders.

Registry to Tax Office

One day before the day of registry or registry date, it is necessary to apply to the tax office where the head office of the company is located. A tax registry number is obtained and legal books of the company are approved by notary.
Signatory circular and rental contract approved by notary must be delivered to the relevant tax office. Establishment procedures are completed after registration and company may start operating. Registration above are completed within nearly 2-3 work days.

Application to Foreign Capital General Directorate
After establishment is completed, application must be made to Foreign Capital General Directorate to notifty.

Branch Registry
Application to Ministry of Industry and Commerce
Decision of executive board or authorised bodies of company center, to which the branch is subject, concerning opening a branch will be delivered to Ministry of Industry and Commerce

Registry and Announcement in Trade Registry
Documents below must be delivered to Trade Registry Office (Documents requested may vary according to the main company’s structure or the country it is located)
• Decision of executive board or authorised body concerning opening a branch in Turkey
• Speciment signature and passport copy of the person who has the authority to represent and bind the branch (certified copy of id card and certificate of residence)
• Power of attorney given to authorized representative in Turkey, standing for signatory circular
• Document from chamber of commerce to which main company is subject.

Registry to Tax Office
Registration procedures of branches are the same as companies

Application to Foreign Capital General Directorate

After establishment is completed, application must be made to Foreign Capital General Directorate to notifty

Contact Office Registration
In short procedures are as follows:
• Application to Undersecretariat of Treasury Foreign Capital General Directorate
• Application to tax office

Application must be made to tax office within a month following obtaining permit from Foreign Capital General Directorate. Contact office itself is not taxable and employers are exempted from income tax; however tax office registry is necessary for tax liabilities emerging from renting payments made to natural entities and stamp taxes in salary payment.

Taking Over an Existing Company
A foreign investory may buy complete or partial shares of an existing company without permission or approval. There is no restriction or regulation concerning an existing company to be taken over by a foreign investor.
Foreign investors may also buy stock certificates from Istanbul Stock Exchange

General terms for a joint-stock company’s shares to be bought are as follows:

• If stock certificates are printed, indorsing and delivery of stock clipping by seller to buyer
• If stock certificates are not printed, written share transfer agreement
Recording the decision of Executive Board concerning registration of shares to partners share book,
• Recording the shares on the name of their new owner to partners share book

General terms for a limited company’s shares to be bought are as follows:
• Making a written contract approved by notary between the buyer and seller
• Notiftying the legal entity of company about share transfer in written
• Approval of minimum 75% of shareholders to represent minimum75% of capital
• Registry and announcement of share transfer in Trade Registry
• Recording it to partners share book
• Notifying Foreign Investment General Directorate

INSURANCE PREMIUM OF FOREIGNERS

Insurance coverage of foreign employer independent worker and company partners as per the law numbered 5510

Those who work independently at their own charges without depending on an employer and whose board is out of the context of Social Security Institutions are considered to have Bağ-Kur insurance by law and the power vested in by the lzaw.

They are considered to have insurance as per (b) subparagraph of 1^st paragraph of 4^th article of the law numbered 5510.

Who are considered 4/b

1. Those who work independently at their own charges without depending on an employer with a work contract is out of the context of Social Security Institutions founded by law and the power vested in by the law.

2. Those, who are income taxpayer in simple or real entry due to income from self-employment or commercial earning, among craftsmen and artisans, and others working independently, and those exempt from income tax among those registered in due form to the professional institutions founded by the law along with artisan and craftsman registry,

3. Partners of collective companies,

4. Active and limited partners of commandite companies,

5. Partners of limited companies

6. Active partners of commandite companies capital of which is divided into shares,

7. Partners of associations of ship owners,

8. Co-founders and partners who are members of executive board of incorporated companies

9. Foreign nationals who are not Turkish citizens due to their commercial activities in Turkey following 04.10.2000

10. Since if those elected for mayoralty when his/her activities continue stated in “Those Considered to Have Insurance” titled part of the 24^th article of the law keep their activities going after they were elected for mayoralty, they cannot be contacted by the State Retirement Fund of Republic of Turkey

Are considered to have 4/b insurance

In the implementation of short term and long term insurance provisions of this law in the 6^th article of the law numbered 5510, it is stated in the e subparagraph: “Persons who are sent to Turkey for business on the name of any institution by that institution founded in a foreign country and prove that they have social insurance in foreign country and those, who are residing abroad and subject to social security regulations of that country, among those who work on their own account……… are not considered to have insurance as per 4^thand 5^th articles.”

As per Social Insurances and General Health Insurance Law numbered 5510, those who work independently on their own account, and reside abroad and are subject to social security regulations of that country are not considered to have insurance.

1- Those who have worked independently in Turkey, however was previously paying premium to the social security institutions of his/her country of citizenship and keeps paying, got retired from these institutions will not have compulsory insurance within 4/b article of the law numbered 5510 if they submit the letter indicating that they receive salary or rota (translated by the local consulates or certified translation offices) indicating that they receive retirement salary or they paid and keep paying premium to the social security institutions of their country of citizenship with work permit.

2- Those who do not have a work subject to social security institution or are not retired from these institutions or do not have a social security institution in his/her country and have independent work in Turkey will have compulsory insurance within 4/b article of the law numbered 5510.

3- For those who have independent work in Turkey and do not provide evidence for their situation, registration will be made without making an extra research.

Turkey has signed contracts with 22 countries for social security

1- Albania 2- Austria 3- Azerbaijan 4- Belgium 5- Bosnia-Herzegovina 6- Canada 7- Czech Republic 8- Denmark 9- England 10- France 11- Georgia 12- Germany 13- Holland 14- Kebek 15- Linya 16- Luxembourg 17- Macedonia 18- Norway 19- Romania 20- Switzerland 21- Sweden 22- Turkish Republi of Northern Cyprus

It is not a new practice to obtain work permit and residence permit for maids, servants, caregivers, nursemaids and nurses.

It is a legal obligation for employers to apply for work permit to Ministry of Labour and Social Security for the foreigners to be employed for home services. The legal applications must be made personally and the foreign employees must have social security.

It also creates extra advantages for the employer:

• The foreigner has extra trust in the employer and therefore do not look for short term work or new jobs. So the family does not lose the personnel they got used to.

• The employer does not have to wait for the negative or positive adaptation process of the new employee. They do not have to wait for a long time to look for a new employee.

• The foreign personnel works more seriously since she/he is aware of the advantages to have when he/she gets independent work permit in the case of working continuously in Turkey with work permit.

• If the foreign personnel gets hurt or injured, or dies, the employer does not have material and moral risks since he/she is working within social security. Also the employee will be aware of the fact that he/she can get retired due to disability in such a case or get retired anyway when the retiring age has come, which causes increase in work motivation.

• If the illegal worker is caught, the employer has to pay a fine of 5000 USD in average.

• If the foreign personnel has residence permit, he/she can make use of his/her leave days freely

• The foreign personnel has work discipline and consistence if his/her life and future is guaranteed by Republic of Turkey.

• She/he does not have to go abroad when the touristic visa has ended, so they do not have to pay for transport, accommodation and fees, they also avoid from stress.

• Since determination of the past and criminal record of the foreign employee will be made by Security and MIT, so the family will be secured. Also their real identity cards will be recorded.

• Foreigner has the right to buy a Taxfreecar or drive his/her own car without paying tax in Turkey.

• Foreigner will work more seriously when she/he knows that if he/she acts against labour contract, he/she will lose his/her job and his/her work and residence permits will be cancelled within 15 days.

• The family of the foreigner can also get residence permit easily, so they do not feel homesick, which increases work motivation.

DOCUMENTS REQUIRED

The applicant must submit the documents listed below to the relevant Security Directorate for long term residence in Turkey:

• 4 passport photos
• Passport
• The page on which there is the applicant’s photo, the page on which there is the stamp which indicates the last entry and the page which indicate the validity period
• Document from the bank to indicate saving account to meet an expense of 300 USD every month or change receipt

Citizens of the A Group Countries: To those who request residence permit at the end of the visa period after coming to Turkey, 3 years’ residence permit is given at the first time and afterwards, residence permits each valid for maximum 5 years are given. To the citizens of A group countries who come for settling purposes can be given 5 years’ residence permit at the first stage.

A GROUP COUNTRIES: Members of EU and OECD, Australia, Belgium, Canada, Czech Republic, Denmark, England, Estonia, Finland, France, Germany, Greece, Holland, Hungary, Iceland, Ireland, Italy, Japan, Lithuania, Luxemburg, Malta, Mexico, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, South Cyprus Greek Cypriot, South Korea, Spain, Sweden, Switzerland, USA

Total staying period for foreigners with visa and visa exemption is 90 days within the last 180 days and those who want to stay longer can obtain residence permit for touristic purposes up to 6 months without discrimination of countries.

Therefore foreign tourists can stay in our country for up to 9 months without going abroad if they obtain 6 months’ residence permit after staying with visa and visa exemption for 3 months. Those who has stayed for 9 months in Turkey may exit from Turkey and enter again 1 day later to stay 90 more days. This practice put into effect in 2012 does not limit the tourists in terms of the period to stay during the whole year. It has supporting, facilitating and regulating qualities.

DOCUMENTS REQUIRED

• Residence Proclamation Form
• Copy of the identity card of the employer
• 4 passport photos
• The original of the passport
• Copy of the passport (Page with the photo, page which indicates the last entrance, page which indicates the validity period)
• Bank account letter of 500 USD or change receipt for every month
• Notary certified rental contract if the foreigner lives in a rented house
• Commitment letter of the Turkish citizen from notary if she/he is staying with a Turkish citizen