Calis Beach and Fethiye Turkey Discussion Forum
Information and Services in Turkey Section => Residency in Turkey, Visas, Work Permit Questions => Topic started by: keng38 on December 06, 2011, 22:31:22 PM
-
I'm looking to set up a company that will be charging commission to a Turkish company for exporting and selling items in the UK.
Ideally I would like to set this up as a turkish company even though I will have no employees and invoice via email etc.
Is this possible nowadays or are the rules still a partnership only with a Turkish National?
-
Three things to bear in mind.
1. Don't
2. Do
3. It
Sorry.
-
quote:
Originally posted by keng38
I'm looking to set up a company that will be charging commission to a Turkish company for exporting and selling items in the UK.
Ideally I would like to set this up as a turkish company even though I will have no employees and invoice via email etc.
Is this possible nowadays or are the rules still a partnership only with a Turkish National?
Ken, that has never been a rule, and as Kieth has said do not do it. I have and rules come out of the woodwork that were not even in the woodwork in the first place. if you are importing then set your Co up in the UK, the Turkish Co that is exporting should have all the licences in place for export, if Kosha ;)
-
Everyone says don't do it - but why not? what's different to having a company in Turkey compared to the UK? Are there any advantages to having a Turkish company? Just interested.
-
A Turk must own 51% of your company and you must employ a certain ammount of Turks to Every foreigner and pay minimum wages and health insurance - and thats before you try to sell anything.
-
quote:
Originally posted by kizkucuk
Everyone says don't do it - but why not? what's different to having a company in Turkey compared to the UK? Are there any advantages to having a Turkish company? Just interested.
If there are, I can't think of any. There appears to be rules and regulations that none of us understand, or that change for foreigners, and that is just the start of it. If you decide you want to cease trading in future, you pay out for still owning the company unless/until someone else decides they want to take it off your hands and can be like an extra mortgage from your monthly budget. Taxes are almost impossible to follow, and if they hit you, they hit you hard and don't appear to have to explain where they got the figures from.If you don't get it paid, or can't afford to, the interest will cripple you in no time. A Turkish friend said of the Turkish taxman "If you get fined and can't pay it, you'll never be able to pay it", such is the rate of escalation of fines and interest.
I would say that given the choice between setting up a company in the UK and doing the same in Turkey should take a split second. Pay your taxes, pay your NI, and run a business where you understand your incomes and liabilities. Best thing I ever did.
-
DONT DO IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
-
Take the advice of those who have been there and done it Ken! Don't live up to your name ;-)
-
You are bound to lose everything, sooner or later it will all go wrong, we have been there abd believe me its a nightmare!
-
quote:
Originally posted by screamlead
A Turk must own 51% of your company and you must employ a certain ammount of Turks to Every foreigner and pay minimum wages and health insurance - and thats before you try to sell anything.
I think you will find that the law changed quite a few years ago. 100% foreign owned companies are allowed to operate in Turkey and do not need local partners. look at vodafone for example and HSBC, no foreign partners down to the single man operations like consultancy companies etc and there are plenty of them. Although the law of 5 Turks to every foreigner employed is true (notice I said employed)
Still the paperwork and red tape is a nightmare to take on and as others say, dont bother.
-
If you are based in the UK and will be involved in the sale of Turkish goods in the UK there is very little point in having a limited company in Turkey.The question for you is to establish where your would have liability(if any) for these goods. If you are the introducer only the contract for liability lies between the supplier and purchaser as you are just the agent.My advice to you is to go and see and accountant or lawyer.
If you want to get more advice on company formation in Turkey I would try the Turkish Chamber of Commerce in Britain.
I agree with most comments in that setting up and operating a company in Turkey is a nightmare.I never done it but any expat that I have spoken to who has says it is hell.
-
It takes minutes to set up in Turkey but many months to dissolve ..... Not like in UK .... We were told it takes a year to close a company and all that time you are still liable for accountant fees, barcor and tax - Even when you are not trading!!
Anyone that knows us knows it was the WORST thing we ever did in Turkey!! We didn't have Turkish Partners but would NEVER EVER EVER set up another company in Turkey. Please heed the warnings here. and as Keith says DON'T DO IT.
-
All I can say to these responses is WOW!!
Thank you all for your replies.
Looks like I'm staying uk based then lol