- December 25, 2021
- Posted by: admin
- Category: Blog
The key factor that attracts the investors around the world by Turkey is location. Since Turkey is a bridge between the east and west. Therefore, majority of the traders around the world consider Turkey as the hub point of their business. As a result of the feature of Turkey numerous businesspeople wish to perform their export and import activities through Turkey. However, opening a trading company in Turkey is an unclear barrier for the investors for their plans.
In several articles at our web site we have cleared the process of company formation in Turkey. Though, the process is the same trading companies may have further requirement for their activities. Therefore, firstly in this post we will repeat the information about company registration in Turkey. Secondly we will address the required process for doing import and export through Turkey.
What Does Trading Company in Turkey Mean ?
The dictionary meaning of trading is buying and selling activities. However, what does this phrase mean in a foreign country? Generally, it refers to export and import activities. When we address the trading company in Turkey it is generally mean export from Turkey and import to Turkey. On the other hand some investors may also choose to local Turkish people. Nonetheless, in this article we will focus on the entrepreneurs planning to do export and import in Turkey.
Firstly, to do trading in other words export and import at first the relevant commodity shall be studied in detail. In import case whether it has potential in Turkey. Oppositely, in export case whether Turkey is successful in the relevant sector. Additionally, required licenses, relevant regulations and procedures and the quotations are import when making a decisions.
After making a decision about the commodity or service for trading the relevant suppliers or buyers are important. In the case of buyer generally the investor has some ideas. However, in most cases the business people require guiding when finding a supplier. Since, Turkey is a new market and new ecosystem for their brand new business plans. Therefore, finding a reputable supplier is quite important element of the process. However, in the age of digitalism it is easier to reach the correct information. The investors may use reputable internet portals or the relevant association of the suppliers. Also, our office will be happy to assist you with this regards.
Opening A Company in Turkey
As you know the goal of this post is mainly about opening a trading company in Turkey. However, to have a trading business in Turkey at first you need to have a legitimate and active company. Therefore, firstly we will remember company formation in Turkey process.
As you already know in various articles we discussed the company formation in Turkey process. However, as a sort of introduction please find below our important milestones for this process.
- Firstly, a foreigner can freely establish a company in Turkey without any barrier. Please find attached our relevant article on this.
https://www.fo-consultancy.com/can-i-open-a-company-in-turkey-without-turkish-partner/
- Secondly, either yourself or your company in your hometown can be a shareholder for the company to be established in Turkey.
https://www.fo-consultancy.com/can-my-company-be-a-shareholder-to-a-company-in-turkey/
- You do not need to come to Turkey for opening a trading company in Turkey.
https://www.fo-consultancy.com/should-i-come-to-turkey-for-company-registration/
The above are the very first questions of the investors interested in Turkey. The process is quite simple. The shareholder either real person or a legal entity shall provide a power of attorney.
When you wish the open a company in Turkey as a real person it will be sufficient to visit our office with your passport. However, to complete the process you need to do some paperwork in one of Turkish consulates. The power of attorney shall be provided to us with the notarization of Turkish consulate.
The Required Documents for Opening a Trading Company in Turkey for Legal Entities
1- Certificate of Activity: It is a document which shows that the shareholder company is still active in the country of origin. In each country such document may have different names. Therefore, it is better to confirm the efficiency of the document before processing it.
2- Additionally, a Board of Resolution from the company is required to establish a company in Turkey. In such board of resolution, the name of the company to be established shall be indicated. Furthermore, a legal representative of the company shall be in the board of resolution. In order to avoid any potential mistakes it is better to have this draft from a legal consultant.
3- A company at the origin shall provide a power of attorney for the company registration in Turkey process. Please keep in mind that such power of attorney shall be provided from the company not a real person.
After the company is registered a bank account will be needed for the company. For this purpose please read our article on complete guide for opening a bank account in Turkey for foreigners. If you have a company in Turkey bank account opening is quite simple. However, there are some procedures need to be completed. Besides, some nationalities due to internal policies of the bank may have some restrictions. Therefore, if your main goal is having a bank account in Turkey, please consult to us about your situation.
Import to Turkey
As we explained earlier the goal of investors for opening a trading company in Turkey is either import to Turkey or export from Turkey.
In this section we will talk about import to Turkey. Actually, the basic principles in all countries are very similar. Import is the purchase of a product produced outside the borders of the country and bringing it into the borders of another country in accordance with its legal responsibilities. In Turkey individuals or companies with a tax number can import. In other words, to be an importer, it is sufficient to have our tax number and fulfill legal responsibilities. Therefore, the importance of opening a trading company is arisen here. Since, after you have a company, you will have a tax number to import.
Difficultios of Import to Turkey
Although it seems very easy, importing is actually not that easy. There are many points to be noted. We can list them as follows;
- Is there any prohibition on the import of the product to Turkey? This is a very important issue, because some products have been banned from import, and some products have been given the authority to import to some institutions by the state. Therefore, before opening a trading company in Turkey we strongly advise you to investigate this point.
- We need to know the G.T.İ.P (Customs Tariff Statistics Position) number of the product we intend to import. This information will help us calculate the import cost. This is also extremely crucial point when determining the profitability of your potential business in Turkey.
- Domestic intelligence on the product we intend to import must be well done. At this point, we need to have researched information such as domestic prices, which documents are required for the sale of the product, and what standards are required for products. In particular, we need to determine the standards and documents well because we will request these standards and documents from our supplier.
- Products can go from every point of the world to every point, but the arrival times and costs of all of them are different, which is a factor that will affect our delivery times and costs.
- We need to know how many pieces fit in the loading vehicle (Truck, Container, Wagon, etc.) that we intend to import. This will help us in calculating the cost.
- Another important point is that you need to have a good Customs Broker after opening a trading company in Turkey. This is important at this point. A wrong statement by the Counsel can face us with very large penalties. The most important thing to remember is that our Customs Broker will be our greatest assistant in matters such as legal regulations and GTIP.
Export From Turkey
The important points for export from Turkey is similar to the points defined above for import. However, this time you shall consider these points for the country you deliver.
Additionally your company must be the member of one of the exporters association in Turkey.
An “export business plan” should be developed before starting to export from Turkey. Within the scope of export business plan; Products with export potential, advantageous aspects of the company in the target market compared to its domestic and foreign competitors, target customers, sales tactics, ways of entering foreign markets, distribution channels should be determined, a marketing strategy and an international pricing strategy should be established. These are the important elements before you consider opening a trading company in Turkey.
The exporter should know very well the legislative features of the product he is considering to export from Turkey. You can gather lots of information from the below institutions
In conclusion in this article we tried to answer the concerns of the investors who are planning to open a trading company in Turkey. However, though the research is important the relevant investor shall gather information from the field as well. Therefore, we strongly advise you to obtain professional service before realizing your plans in Turkey. Since, the cost is the most important element for your business. However, calculation of the cost in a foreign country can be challenging for your plans.
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