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Doing Business in Turkey

ImageA foreign company may do business in Turkey in one of the following ways: Operate as a contractor, establish a branch or a subsidiary.

Establishment Procedures
The registration and foundation procedures relating to Turkish subsidiaries and branches have been simplified considering the permissions to be required for the establishment. Under the present regulations except for the liaison offices, there is no more any requirement to get the Turkish Foreign Investment Department permissions or approvals for the foundations and registrations.

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2011 Wage Parameters

ImageMinimum wage amount is changed, and so did the upper and lower limits of average daily earning taken as basic to premium.

Family allowance, child allowance and disability benefit amounts are also redefined.

Minimum Wage amount is changed

Based on Labor Law no 4857 and with the decision of Commission of Fixing the Minimum Wages, the new parameters are set as follows:

For workers over the age of 16, the wages will be;

26.55 TL per day and 796.50 TL per month between 01.01.2011 and 30.06.2011; 27.90 TL per day and 837.00TL per month between 01.07.2011 and 31.12.2011

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Which Works Can Be Given To The Subcontractor?

ImageThe person who takes a work that requires specialization in auxiliary works or in some part of the main work because of technological reasons or as necessity of work related to the product or service production at the work place and assigns his workers employed for that work only to the work he has take  is called as subcontractor.

The work that requires specialization as necessity of the work and establishment is one of the obligatory elements of the product or service production that requires a separate specialization other than the own specialization of the establishment.

The employer has to make a product or service production by means of his own employees and management organization.  However, the main work can be given to the subcontractor only if the following conditions occur together;

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Criteria for Work Permit of the Foreigners Started To Be Implemented
ImageWith a view of finalizing transactions for work permit requests of the foreigners in an objective and rapid way, as per the Article 13 of the Regulations on the Implementation of the Act No. 4817 on Work Permit of the Permits, the assessment criteria were determined with the Consent of the Ministry. The assessment criteria started to be implemented as of 2/8/2010 are written below:

1- It is obligatory to employ minimum five citizens of the Republic of Turkey at the workplace for which the work permit is requested. In case the foreigner requesting such permit is the company partner, the condition of employing five persons is sought after for the last six months of the one-year work permit to be given by the Ministry.

2- For the workplace, the paid-in capital should be minimum TL100,000 or its gross sales minimum TL800,000.- or export amount of the last year minimum USD250,000.

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