Türkiye: Operating a Business

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 Setup Procedures

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

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Kompass Turky - Business directory for Turkey

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

For Further Statistics

Ministry of Development

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%.

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

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

Dispute Settlement

Social Partners

Employer Associations

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

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.

Labour 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