Operating a Business

flag Türkiye Türkiye: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

Legal Forms of Companies

The Limited Sirket: Limited Liability Company
Number of partners: Between 1 and 50 partners.
Capital (max/min): TRY 10,000
Shareholders and liability: Liability is limited to the amount of capital contributed.
The Anonim Sirket: Public Limited Company
Number of partners: Minimum of one partner.
Capital (max/min): TRY 50,000
Shareholders and liability: Liability is limited to the amount of capital contributed.
Sahis Sirket: Individual Company
Number of partners: One partner.
Capital (max/min): The assets of the company are merged with those of the head of the company.
Shareholders and liability: The businessperson is indefinitely liable for the professional debts on the whole of his assets.
General Partnership (SCS) or Joint-Stock Company (SCA)
Number of partners: The SCS - SCA is made up of two distinct categories of partners: active partners and silent partners.
Capital (max/min): SCS: Contrary to joint-stock companies (SA, SAS, SCA), no minimum capital is required to constitute an SCS. The partners decide freely the amount of capital to be paid up at the constitution.

SCA: The same rules as for a public limited company.
Shareholders and liability: Silent partners are the shareholders of the company and are only liable for debts according to the amount of capital they have contributed. The shares are registered. The silent partners' assembly follows the same rules as in a public limited company (SA).

Active partners have the status of traders and are appointed by the silent partners. They are indefinitely and jointly liable for debts on their own property.

 

Business Directories

Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses
Kompass Turky - Business directory for Turkey

To go further, check out our service Business Directories.


 

Professional Associations

General Professional Associations
TUMSIAD - Whole Industrialists’ and Businessmen’s Association
TUGIAD - Young Businessmen Association of Turkey
TUSIAD - Turkish Industry and Business Association

To go further, check out our service Professional Associations.


 

Business Setup Procedures

Setting Up a Company Türkiye Eastern Europe & Central Asia
Procedures (number) 7.00 5.26
Time (days) 7.00 11.78

Source: Doing Business - Latest available data.

 
The Competent Organisation
The Chambers of Commerce and Industry in each region where the headquarters of the company have been set up: Istanbul (ITO); Izmir (IZTO); Bursa (BTSO); Ankara (ATO).
For Further Information
Doing Business: Turkey, to learn about procedures to start a business in Turkey
Turkish Trade Registry Gazette
 

Recovery Procedures

Principle
In the framework of the safeguard scheme, two legal decisions are generally made:
- being put into receivership
- compulsory liquidation
Minimum Debt-to-Capital Ratio Triggering Liquidation
No minimum
Bankruptcy Laws
Law 2004 - 2128 of 19/06/1932

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The Active Population in Figures

201820192020
Labour Force 32,833,54933,318,94132,317,036

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 57.55%58.08%58.09%
Men activity rate 78.14%78.39%77.95%
Women activity rate 37.45%38.15%38.54%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2015
Agriculture, forestry and fishing 20.4%
Manufacturing 18.7%
Wholesale and retail trade; repair of motor vehicles and motorcycles 13.9%
Construction 7.2%
Public administration and defence; compulsory social security 5.5%
Accommodation and food service activities 5.4%
Education 5.3%
Administrative and support service activities 4.9%
Transportation and storage 4.2%
Human health and social work activities 4.0%
Professional, scientific and technical activities 2.8%
Financial and insurance activities 1.1%
Information and communication 1.0%
Real estate activities 0.8%
Water supply; sewerage, waste management and remediation activities 0.6%
Arts, entertainment and recreation 0.6%
Mining and quarrying 0.4%
Electricity, gas, steam and air conditioning supply 0.4%
 
For Further Statistics
Ministry of Development

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Working Conditions

Opening Hours
 
  • Legal Weekly Duration
45 hours
  • Maximum Duration
Maximum 11 hours/day
  • Night Hours
From 8 pm to 6 am. It is forbidden to work more than 7.5 hours in this period.
Working Rest Day
The usual weekly rest day is Sunday. At week-ends public companies are closed. Some private companies are too, but it is not rare to see private sector staff working on Saturday morning.
Paid Annual Vacation
- Between 1 and 5 years working in the same company, 2 weeks vacation.
- Between 5 and 15 years working in the same company, 20 days paid vacation
- More than 15 years, 26 days paid vacation
Retirement Age
The retirement age is 58 for women and 60 for men.
Child Labour and Minimum Age For Employment
16
Informal Labour Market
There are no official figures but it is estimated at 30-40%.

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The Cost of Labour

Pay

Minimum Wage
In July 2022, the national minimum wage in Turkey was fixed at TRY 5,500 per month (around USD 330).
Average Wage
In 2020, the monthly average gross earnings were 4,514 TRY per month (Statistical Institute, latest data available).
Other Forms of Pay
  • Pay For Overtime
According to the law, overtime is paid 50% more than the normal rate. Overtime may not exceed 270 hours/year. However, in practice, this is left up to the head of the company.
  • Pay For Rest Days Worked
Days paid normally
  • Pay For Night Hours
No supplement
  • Pay For Overtime at Night
No supplement
 

Social Security Costs

The Areas Covered
Old age, disability and survivors; sickness and maternity; work Injury; unemployment
Contributions
Contributions Paid By the Employer:

Total social contributions paid by employees are 22.5%

  • Short-term social security contributions 2%
  • Disability, old age, death 11%
  • General health insurance 7.5%
  • Unemployment  2%

Contributions Paid By the Employee:

All employees, including foreign nationals, are subject to compulsory social security. Total social contributions paid by employees are 15%

  • Disability, old age, death 9%
  • General health insurance 5%
  • Unemployment 1%
Competent Organization
Social Security Institution (SGK) - administers the programme and collects contributions
Ministry of Labour and Social Security (CGSB) - provides general supervision

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Management of Human Resources

 

Recruitment

Method of Recruitment
Applications are made more and more by Internet. The method of recruitment in Turkey is by face to face interview.
Recruitment Agencies
Independent, well-known recruitment agencies: Nicholson International, Heidrick & Struggles and Amrop, among others.
Agencies specialized in temporary work: Adecco, etc
Recruitment Websites
Insan Kaynaklari
Kariyer
Secretcv
 

The Contract

Type of Contract
Work contracts are governed by individual negotiation. The formality of the work contract and the conditions of dismissal are rigid (dismissals must be justified only if the firm has more than 30 employees).

Breach of Contracts

  • Retirement
Retirement at 60 for men and 58 for women.
  • Dismissals
The employer initiates dismissals:
- redundancy is either individual or mass redundancy
- dismissal for professional misconduct
  • Other Possible Methods
Resignation; this is initiated by the employee.
Labour Laws
Ministry of Justice information website
Ministry of Justice
Doing Business: Turkey, to obtain a summary of labour regulations that apply to local enterprises
 

Dispute Settlement

 

Conciliation Process

Cases of Dispute
Physical violence, harassment, working conditions, pay....
  • Legal Framework
Conciliation : conciliation between the parties is achieved. If there is no conciliation, the procedure is sent before the judgment bureau.
Judgment : the case is judged by members of the Industrial Tribunal.
  • Procedure
Defined in the Labor Code
 

Judicial Structures

  • Legal Framework
Click here
  • Competent Legal Body
The Industrial Tribunal
 

Social Partners

Social Dialogue and Involvement of Social Partners
Unions in Turkey are generally not that powerful, though they are stronger in the public or semi-public sectors.
Unionisation Rate
The unionisation rate in Turkey is currently relatively low. According to OECD data, trade union density was 6.3% in 2013, a steep decline from 28% in 2000.
Unions
DISK: Confederation of Progressive Trade Unions of Turkey
Hak-Is
Turk-Is: Confederation of Turkish Trade Unions
KESK: Confederation of Public Employees Trade Unions
BASK
HAKSEN
Regulation Bodies
Ministry of Labour and Social Security
Turkish Industry and Business Association
Turkish Confederation of Employer Associations
 
 

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Latest Update: November 2022