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ERYILMAZ CPA - Company Formation Department / 2022-01-18

2022 Limited Company Establishment Cost in Turkey

 

        One of the most frequently asked questions by company owners who want to establish a limited liability company in 2022 is the establishment expenses of the limited company and the total costs to be paid during the registration and registration process of the company. In addition, after the registration of a limited company, monthly and periodic expenses may be of great importance for the continuity and activities of the company.
 

        In order to form an average idea about the registration & announcement expenses and monthly costs of the limited company, we made a sample cost study with minimum data. Expense items mentioned in the example include the minimum costs required to establish a limited company in 2022 and are for informational purposes only. 

 

 

FOUNDATION EXPENSES OF A LIMITED COMPANY IN TURKEY 2022

 

 

      The main expenses encountered when establishing a limited company are; Notary fees, sworn translator fees, chamber of commerce registration and announcement fees, limited company establishment service fee and tax office registration costs. Let's explain these costs with an example table;

 

LLC 2022 Sample Cost Study;

 

 Blue  Engineering Limited Company Establishment Information

Limited Company Founder; 1 Person - Non Turkish Citizen
Manager of the company; 1 Person - Co-founder
Company Capital ; 10,000 TL. The minimum capital required for LLC. You do not need this amount when establishing a company.
Employee  ; no
Sector of the company; Engineering and consultancy services
Monthly Rent of the Workplace; 1.500 TL

 

1- NOTARY FEES; 102$

Passport translation Turkish ; 36$
Signature circular of the company director; 33$
CPA Accounting Pawor Of Attorney; 33$

 

Note; If the founding partner will not come to the chamber of commerce for signature, an additional 44$  notary fee will be incurred for the company incorporation power of attorney.

 


2- CHAMBER OF COMMERCE EXPENSES 

 

Chamber of Commerce Registration, Registration, Announcement, Accounting Books, Certificate of Activity; 95$
 

Note; For a limited company that will operate in different commercial areas, the chamber of commerce fees may increase slightly depending on the number of words in the company's articles of association.

 

 

3 - Certified Public Accountant And Sworn Translator Service Fee; 180$

 

4- Tax Office Costs; 14$ (Stamp taxes of the lease agreement and accounting agreement)

 

2022 TOTAL COST 391$ OF ESTABLISHMENT OF A LIMITED COMPANY IN TURKEY

 

     Note 1 ; The costs in the example are the minimum costs required to set up a limited liability company in 2022 in Turkey. In addition, your limited liability company may have expenses such as municipality license fees, ministry permission and license costs related to its field of activity, in terms of its field of activity and characteristics.

 

     Note 2 ; If your limited company will carry out caving & retail sales, add 1.100 TL cash register and pos device expenses. (Some banks may offer cash register POS device free of charge, depending on the agreement)

 

      Note 3 ; Sample cost Table and expense items are for one non of Turkish citizen partner. 

 

      Note 4; When establishing a limited company, the obligation to open a bank account and block a part of the capital has been abolished. That is, when setting up a limited company, you do not need to open a bank account and have the capital blocked. After establishing the company, you can get a bank account and deposit the capital into the account within a 2-year period.

 

        Note 5 ; The Sample Cost table is for informational purposes and was prepared for the establishment of a limited company in Istanbul in 2022. In other regions, costs may differ slightly. Request a cost quote according to the city you are in and the characteristics of your business.

 

 

      YOU CAN ALWAYS CONTACT US TO GET A DETAILED AND UPDATED COST TABLE SPECIFIC TO YOUR BUSINESS.

 

 

WHAT ARE THE MONTHLY EXPENSES OF A LIMITED COMPANY IN 2022 IN TURKEY ?

 

      After the registration of the limited company, the monthly taxes and other payments of the company will be at least as follows in 2022. These expenses are the minimum monthly costs to be paid by a limited company with LOW OR INACTIVE. The costs will vary somewhat depending on the size of the company's activities, the number of branches, the number of personnel and the type of activities.

 

     Stamp Duty of VAT Declaration; 87.30 TL. It is paid monthly. In case the company has sales, value added tax is calculated according to the VAT calculated in the sales invoices and the VAT amounts to be deducted from the expense invoices.

 

      Monthly insurance payment and personnel income taxes; In the case of employing personnel, the insurance premium and the taxes of the workers working with wages above the minimum wage are incurred every month. You can consider employee insurance payments and taxes to be between 41% and 44% of the average monthly net salary.

        Insurance payment of the Limited Company Manager (4B Bağkur); From the establishment of the company, the 4B (Bağkur) insurance of the company manager starts automatically. The only exception is if the director of the company is insured at another company at the same time, there is no obligation to be a member of Bağkur and pay insurance premiums. Minimum bond premium in 2022; It is 1.476,18 TL. This amount is the discounted premium determined for those who regularly pay the insurance premium every month.


      Withholding Payment and Stamp Duty of Concise Statement; 103.50 TL is stamp duty. If there is a worker, it is every month, if there is no worker, it is every 3 months. In addition ; 25% of the monthly net rent of the workplace is calculated according to the fee paid to the lawyer, if any, the smm fee and the income taxes of the workers. (If the workplace is owned by the company or is a virtual office, or if the owner is giving invoices for monthly rent, there is no withholding tax for the workplace rent. )

 

       Stamp duty of Provisional Tax Declaration; 102 TL. It is paid every three months. However, if the company makes a profit, a corporate tax payment occurs on the 3-month net profit. Corporate tax rate is %22 of net profit in 2022. 

 

      Notarization fees and expense contribution of accounting books; It is around 2.000 TL. It is paid annually, with the exception of the year the company was first established. In the first year of establishment, accounting books were added to the establishment cost. For the following years, it occurs every year.

 

    Annual membership fees of organizations such as chambers of commerce and industry where the company is registered. 2022 annual membership fee of ITO for newly established capital companies is 505 TL.

 

    Municipal Taxes; It is paid annually by all businesses licensed by the municipality. Companies that are not subject to municipal licensing do not pay. It is calculated according to the size, location and characteristics of the workplace.

 

     Certified Public Accountant sccounting & bookkeeping service fee. It can be paid monthly with an annual contract or annually by agreement. The activity volume of the limited company is determined according to criteria such as its sector, characteristics, needs, number of personnel, number of branches, imports and exports, and the amount of monthly sales invoices.

 

 

 How much does it cost to set up a limited company in 2022 in Turkey ?

 

     Summarly ; Establishing a limited company in 2022 will cost approximately 400$ - USD. These costs are calculated based on minimum requirements. The number of partners of the company may vary slightly depending on the partnership status of foreign citizens, the activities of the company, the business volume of ltd, the number of personnel, import and export transactions and similar criteria.

 

     Dear Entrepreneur; In the establishment stages of the limited company, the issue that is as important as the establishment costs and fees, or even more important; It is the determination of the correct address to receive service in my accounting and establishment transactions. A knowledgeable and dynamic team will always guide you in the right direction, warn you not to fall into cost traps, and protect your business against all kinds of financial risks. Therefore, we believe that determining the right address to receive service is the most important issue.

 

 

 

         You can always contact us to get a specific and up-to-date cost table for your business. We set up your company on a turnkey basis and offer appropriate and pragmatic solutions for all your needs.

 

 

Best regards and greetings 

 

 


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