Is it Mandatory for the Foreigner Who Establishes a Company to Obtain Work Permit?

Is it Mandatory for the Foreigner Who Establishes a Company to Obtain Work Permit?

Foreigners who are partners of limited companies established in accordance with the Turkish Commercial Code numbered 6102, member of the board of directors who are partners of joint-stock companies and commandite partners of limited partnership in which the capital is divided into shares, can work by obtaining a work permit.

Member of the board of directors who are not residing in Turkey, of joint stock companies established in accordance with the Law No. 6102, and a partner of other companies who do not have the title of manager, are considered within the scope of work permit exemption.

How to Obtain Work Permit for the Foreign Employees?

It is obligatory to employ at least five Turkish citizens in the workplace for which a work permit is requested. If a work permit is requested for more than one foreigner at the same workplace, five Turkish citizens will be employed separately for each foreigner after the first foreigner who is granted a work permit.

If the foreigner requesting a permit is a company partner, the employment requirement for five persons is sought for the last six months of the one-year work permit to be given by the Ministry. However, the paid-in capital of the workplace must be at least 100,000 TL or its gross sales must be at least 800,000 TL or the last year's export amount must be at least 250,000 USD.

Is it Mandatory to Employ Turkish Citizens?

Foreigners can establish and take over companies in Turkey as 100% shareholder or they can become partners in companies (for work permit) provided that they do not have less than 40% of the shares.

If the company is newly established, it is sufficient to have a paid-in capital of 100 thousand TL, it is not obligatory to employ 5 Turkish citizens within the first six months. After six months from the establishment of the company, 5 Turkish citizens have to be employed. For the foreign partner of the company that does not employ 5 Turkish citizens, the application for an extension is rejected by the ministry.

Is there Any Permits to be Obtained in Order to Establish a Company in Turkey?

In general, a permit is not required to establish a trading company in Turkey. However, permission from the Ministry of Customs and Trade is required for the establishment of companies operating in certain fields of activity. These companies are;

- Banks,

- Financial leasing companies,

- Factoring companies,

- Consumer finance and card services companies,

- Asset management companies,

- Insurance companies,

- Conglomerate established as joint stock companies,

- Companies operating foreign exchange offices,

- Companies dealing with public merchandising,

- Agricultural products licensed warehousing companies,

- Product specialized exchange companies,

- Independent audit companies,

- Surveillance companies,

- Technology development zone management companies,

- Companies subject to the Capital Market Law,

- Free zone founder and operator companies.

In addition, foreign capital companies and companies with domestic capital, which are included in this scope later, and liaison offices must notify the Ministry of Industry and Technology, General Directorate of Incentive Implementation and Foreign Capital.

Tags: work permit, permission, foreigner workers, capital, company, permit, employment