Istanbul Financial Center

Setting up a company in the IFC ensures a presence in a dynamic financial ecosystem with cutting-edge infrastructure, regulatory incentives, and strategic proximity to Europe, Asia, and the Middle East.By following the steps below, you can easily establish your company in Istanbul Finance Center and start benefiting from the incentives and supports provided immediately.

1- Why Set Up a Company in Istanbul Financial Center?

The Istanbul Financial Center offers significant advantages to businesses, including:

• Strategic Location: Istanbul serves as a gateway to Europe, the Middle East, and Central Asia.
• Regulatory Support: The IFC consolidates Turkey’s financial regulatory bodies for streamlined compliance.
• Tax Incentives: Reduced taxes and exemptions are available for eligible companies.
• Access to Markets: Proximity to emerging and developed markets provides businesses with growth opportunities.
• World-Class Infrastructure: The IFC boasts modern office spaces, advanced tech systems, and integrated amenities.

2- Types of Companies Allowed in the IFC

The IFC accommodates a range of businesses, including:

• Financial Institutions: Banks, investment firms, insurance companies, and asset management firms.
• Technology Companies: Fintech startups and IT firms supporting financial services.
• Professional Services: Legal, consulting, and auditing firms specializing in finance-related industries.
• Multinational Corporations: Regional headquarters for global businesses seeking access to Eurasian markets.

3- Types of Legal Entities in Turkey

The commonly preferred types of legal entities and their features within the Istanbul Financial Center are as follows:

• Joint Stock Company (JSC)
  • Structure: Ideal for larger, corporate businesses, a JSC operates through shareholding. Shareholders’ liability (except for public debts) is limited to their capital investment.
  • Capital Requirement: Minimum of 250,000 TL, with 25% to be paid upfront into the company’s bank account before establishment. The remaining amount must be paid within 24 months.
  • Benefits: No upper limit on the number of shareholders.It has simplified share transfers. 100% foreign ownership permitted. Shares can be listed on the stock exchange. Most common type of equity company at IFC.
  • Responsibilities: Shareholders are not required to act as directors, it is optional, therefore the liabilities of non-director shareholders are limited to their capital amount (excluding public debts).

                Learn more about JSCs in Turkey

• Limited Liability Company (LLC)
  • Structure: Accommodates 1 to 50 shareholders.
  • Capital Requirement: Minimum of 50,000 TL, payable within 24 months.
  • Benefits: 100% foreign ownership permitted. Establishment can proceed with zero capital (to be deposited later).Most common type of equity company in Turkey.
  • Responsibilities: At least one shareholder must act as a manager. Other directors can be shareholders or external appointees.

                Learn more about LLCs in Turkey

• Sole Proprietorship Company
  • Structure: Owned and operated by a single individual responsible for all debts and liabilities.
  • Benefits: No cash capital required, quick registration and liquidation, low operating costs.
  • Drawbacks: Owner is personally responsible for all actions and debts, subject to progressive tax regime.
• Branch Office
  • Structure: Allows foreign companies to engage in commercial activities in Turkey without establishing a new entity.
  • Benefits: No minimum capital requirement, can commence business immediately, can issue invoices and transfer profits outside of Turkey.
  • Drawbacks: Limited to the parent company’s scope of activities.

             Click the link for more info about Branch Office in Turkey

• Liaison Office
  • Structure: Set up by foreign investors for research activities without commercial engagement.
  • Benefits: Exempt from corporate income tax and VAT, relatively easy registration and liquidation.
  • Drawbacks: Prohibited from commercial activities, cannot issue invoices or transfer profits, time-restricted operations (initially three years, extendable).

             Click the link for more info about Liaison Office in Turkey

4- Application for Participant Certificate

Entities (natural or legal persons, branches, representatives, partnerships, liaison offices, financial centers, and wealth funds) wishing to operate within the IFC must apply to the Finance Office via the IFC portal to obtain a participant certificate.

• Application Process: Conducted electronically via the IFC portal, with the process details published on the portal.
• Pre-requisites: Applicants must complete all necessary public permits (licenses, approvals, etc.) required for their activities. If a lease agreement is mandatory for obtaining operational permits, it must be signed before finalizing the process.
• Submission: Applications can be submitted directly or through an authorized representative. Required forms and documents must be uploaded to the IFC portal. The Finance Office may request additional or certified documents if needed.
• Corrections: Missing or incorrect submissions must be corrected within 30 days of notification, with possible extensions of up to 30 days. Time limits do not apply to entities established but lacking operational permits.