Consulting sector can be defined as a commercial and professional activity category formed by real persons or legal entities consisting of experts specialized in certain fields to transfer their knowledge, experience and skills in required fields and provide actionable strategies to real or legal persons who obtain consultancy from them. In general, it is expected by customers that the real and/or legal persons who will provide consultancy are professionally specialised and equipped in a certain field for many years, that they are provided with an impartial consultancy service, and that the interests of the institutions and individuals who will receive the consultancy are prioritised.
Individuals reach out to consulting firms to send experts specialised in certain industries who are also known as consultants, to observe and analyse a companies’ operations we can say. Consulting companies often start with a SWOT analysis for their customers and provide a guide and a feedback for the company to achieve its corporate goals.
Real persons or legal entities can apply to consulting companies to obtain qualified consultancy services on many different sectors such as management consultancy, human resources consultancy, real estate consultancy, trademark and patent consultancy, project management consultancy, information technology consultancy and educational counselling.
Especially when we take a look at the field of management consultancy, which is in great demand in the sector, it can be clearly seen that companies prefer such type of consultancy firms for many reasons such as growing in the market, developing the company with a comprehensive transformation and making the company more competitive in the market, preparation for entering into a trade area where the company has not operated before or for example with the aim to reduce corporate costs and to increase capital.
Therefore, if you are willing to establish and register a consulting firm in Turkey, it is important to determine which business line/(s) you will operate in. The field of activity of the company you will establish will be determined in line with the Statistical Classification of Economic Activities in the European Community (NACE) Codes. It is possible for the companies to apply to the relevant chamber of commerce in Turkey to change the NACE codes of their company at any time after the establishment.
In order to register a consulting firm in Turkey, getting support from an expert team of lawyers with years of experience in fields such as Corporation law, company establishment and commercial law will both legally guide you and shield your interests.
If you want to register a consulting firm in Turkey, you can contact with our law firm in Turkey specialized on company formation in Turkey and obtain detailed information. Our lawyers prepare you for post-establishment transactions even before the company is established, provide you detailed information regarding the company establishment procedures and legally assist you in any matter you need after your business is set up in accordance with the sector you are commercially active in.
The Consulting Market in Turkey
The International Monetary Fund and the World Bank has described Turkey as a country having an emerging market economy. By economists, Turkey is classified as a newly industrialised country (NIC). Emerging markets are important to foreign investors enabling the investors to build a brand in a territory with little or no competition and to gain prestige for expanding to an emerging market and growing the capital.
Turkey indeed is a very attractive country for foreign investors offering greater returns to investors due to its rapid growth and governmental incentives. We can say that more than twelve thousand companies with foreign capital are established in our country every year. In order to obtain detailed information regarding why foreign investors choose to invest in Turkey, you review our Article, “International Foreign Investment Law”.
As these foreign investors from Germany, Holland, United States and many other countries investing in Turkey are willing to learn more about the relevant sector in Turkish market, to do a competitor analysis and to be recognized and grow in the relevant market, the need for consultancy firms is growing visibly day by day.
On the other hand, Turkey as an emerging market has a dense young population constituting a promising dynamic work force and a capability to produce considerable goods and services which is also one of the reasons luring foreign investors to invest in Turkey. It is important to mention that young people chose to enter into the market as entrepreneurs thus building their own companies in the market without years of experience in their careers and/or knowledge on sectoral basis also increase the need for consulting firms.
Foreign investors can act alone for setting up a Business as a sole trader in Turkey. And there are no requirements expected to be fulfilled or qualifications to be met or any certain type of certification to be obtained by the investor as per law regarding the subject which makes the investment more attractive for the foreign investors. For any foreign investor setting starting up a consulting firm in Turkey, it is easy to establish a company.
As per The Business Research Company data, global management consulting services market is expected to grow from $ 891.88 billion to $ 973.67 billion on 2022 at a compound annual growth rate of 9.2%.1 In todays’ Turkey, many institutions and organisations especially Small and Medium Sized Enterprises based in Turkey, benefit from consultancy being in the first place management consulting services intensively in many internationally approved fields.
Ministry of Development of Turkish Republic states with Eleventh (2019 – 2023) Development Plan, Management Consulting Services Working Group Report, the size of the management consulting market in the World reached to 251 Billion USD as of the end of 2016, and the EMEA region including Turkey, constitutes 41% of the World’s consultancy market.
It has also been stated in the report that the total income earned by the management consultants in Turkey is 2.5 Billion TL (as of December 2017 exchange rates, this income corresponds to 650 Million United States Dollars). According to the same working group report, it was emphasised that the current trend in the market is a clear segmentation of management consulting companies.2
Types of Consulting Companies in Turkey
Without being limited with those listed herein, if you are willing to set up a consulting company in Turkey, you can choose to act in the areas stated below.
- You can set up an IT company acting in the field of information technology for the needs of real or legal entities based in Turkey willing to technologically – digitally accord and grow.
- You can set up accounting and auditing companies providing monthly accounting and consultation services regarding corporate taxation in Turkey.
- You can set up a real estate consulting company in Turkey providing pre-development consultancy, market analysis, financial analysis and modelling, transaction due diligence and many other consultation services.
- You can set up a human resources consulting company in Turkey providing consultancy regarding personnel training planning, personnel hiring and disemployment, management of employees, etc.
- Bearing in mind there are thousands of foreigner real persons coming to Istanbul to take a cost effective education, you can set up an educational counselling company in Turkey assisting foreigner real persons with their careers, their applications to academies and also assist them with their residence permits.
- You can set up a company utilising management consulting services to provide consultation on organisational issues, human resources, finance, marketing and Business strategy providing services in a wide range of sectors such as McKinsey & Company, PwC, EY, KPMG and Deloitte.
- You can set up a consulting company in order to outsource consulting services under PEO, EOR, BPO and ASO in a hybrid way and as a package.
How To Register As Consulting Business in Turkey 2023
It is important for a real person or legal entity who will register as consulting Business in Turkey to determine the type of company he will establish following up determining the sector in which he will commercially operate. Consulting companies are usually established as limited liability companies or joint stock companies. Depending on the type of company you are willing to establish, the documents, legal process and timeline required for company establishment vary.
Joint stock companies are more difficult to establish, based on the required documents and procedures. Again, the documents required for company establishment in Turkey will change depending on whether the partner of the company you will establish is a foreigner real person or a legal entity. You can find detailed information about the documents you need to prepare as per company type you will establish in Turkey and the establishment procedures to be followed from the section titled “Corporation and Commercial Law” we have published through our web page.
If you are going to establish a sole proprietorship or a limited liability company with one real person partner, the company establishment procedure is quite easy and fast. If you are going to establish a limited liability company with one partner in Turkey, it will be sufficient for you to present your ID proving your foreign ID number, your residency permit document, if any, passport photo taken within the last 6 months, notarized passport translation and a power of attorney proving that you have authorised our lawyers and send them in our head office based in Istanbul.
Afterwards, our lawyers prepare the Articles of Association, trade title and NACE codes in accordance with your instructions and business and market the relevant application through MERSIS and get an appointment for physical establishment. In this way, your consultancy company can be established in a maximum of five days. The important thing here is that some post-establishment transactions such as obtaining trade registry certificate and corporate books, sometimes having the books prepared at the notary, issuance and notarization of the signature circular of the company, issuance and notarization of a power of attorney in order to authorize an accountant, shall not be skipped, these are separate transactions that shall be followed with experts.
Our law firm in Turkey is all about empowering you with knowledge; however we will suggest you to proceed with a professional team regarding company establishment since pre and post company establishment procedures require experience and legal knowledge. Our law firm in Turkey, with its English speaking lawyers can understand the needs of your business and legally assist you with its cost effective pocket services.
Requirements for Setting up a Turkish Consulting Business
Foreigners can own a company in full and transfer their profit out of Turkey without any problems. Foreign capital can be brought to a corporate bank account opened in Turkey without any problems but shall be exchanged to Turkish Liras as per Turkish Commercial Code and Trade Registry Regulation. There are no formal and administrative standards and requirements for providing consulting services in Turkey. Turkish law does not require investors to provide their personal information to be investigated or exhibited in public records either.
On the other hand, like all the other merchants acting within the borders of Turkey, since you will be subject to Turkish Law, you will be obliged to follow the general company establishment procedures and company formation requirements stated under Turkish Law. Our law firm is able to form and set up your company remotely and open your bank account with a Power of Attorney if you are not present in Turkey in a short period of time.
The Process of Registering a Company in Turkey
English speaking Turkish lawyers of our law firm are always prepared to assist you to set up a business in Turkey, obtain a tax registration number in Turkey, establish a company in Turkey and open a corporate bank account in Turkey. Our lawyers are specialised and experienced on limited liability company establishment in Turkey, branch office formation in Turkey, liaison office formation in Turkey, opening a free zone company in Turkey, joint stock company establishment in Turkey and providing company management and governing services in Turkey.
We have assisted hundreds of clients from Russia to United Kingdom, from Germany to the United States of America, from Lebanon to Italy regarding company establishment in Turkey. We also provide company address services for our clients until they manage to buy a property in Turkey or find a place to rent until they physically come into operation.
As we have mentioned earlier, you can obtain detailed information especially regarding the procedures of company establishment in Turkey as per the company type you are willing to establish through the Article we have published with the name “Commercial and Corporation Law”. However we have indicated herein a general route to make you understand the content of procedures of company establishment in Turkey.
- Assisting Clients regarding issuance of Power of Attorney for our lawyers regarding company establishment in Turkey.
- Reserving company trade titles through MERSİS.
- Translation and notarization of the partner’s passport.
- Obtaining tax id numbers for each partner from the relevant tax office.
- Arranging a virtual office and an accountant for the company, signing a lease contract for the company address.
- Initiating company establishment procedures through MERSİS, filing company details, preparing the articles of association before the Istanbul Chamber of Commerce online, reserving a date for physical company establishment before the relevant Istanbul Chamber of Commerce.
- Conducting and completing physical establishment and signing the articles of association on behalf of the partner.
- Obtaining certificate of trade registry and corporate books from the Chamber of Commerce.
- Obtaining signature circular for the company before a Notary Public.
- Assisting the company established in Turkey to issue a Power of Attorney for an accountant.
- Opening a company bank account and assisting clients to transfer the capital.
- Providing legal consultancy to the client on different topics that client requires such as tax liabilities, acquiring a real estate property in Turkey, Turkish citizenship, company governance, recruitment and employment and brand protection and registration.
Advantages of registering a company in Turkey
There are many advantages of registering a company in Turkey several being the ones stated below:
- It is possible to establish a limited liability company in Turkey with 10.000 TL capital and pay the capital within 24 months.
- Establishing a company in another country might cost you a fortune but establishing, operating and governing a company in Turkey will be cost-effective in many ways. Minimum wage to be paid to your employees for example will be very low.
- A company can be established only with one partner and that only partner can be appointed as the manager at the same time.
- Young consumer population following the trends is very high. With a great brand and marketing strategy you can be recognized in the market in a short period of time.
- Foreign investors can obtain Turkish citizenship by making an investment in Turkey. Citizenship can be acquired by buying a property, making an investment, creating employment or bank deposit with certain requirements specified in law. For example, as per Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law, a foreigner determined by the Ministry of Labour and Social Security to employ at least 50 real person can acquire Turkish Citizenship by exceptional means. In order to obtain more information regarding obtaining Turkish Citizenship by exceptional means, you can review our web page and find our Article “Commercial and Corporation Law” and “Immigration Law”.
- You may prefer to invest in Turkey due to a liberal and foreign investment-oriented investment environment and incentives Turkish Government provides. Foreigners can apply to the Ministry of Industry and Technology in order to obtain an Investment Inventive Certificate (IIC) which grants land allocation, VAT and custom duty exemption, tax deduction, social security premium support and many other incentives.
1 The Business Research Company, Global Management Consulting Services Market Report 2022 – Market Forecast, Trends And Strategies, 3 Feb, 2022.
2 T. C. Kalkınma Bakanlığı On Birinci Kalkınma Planı (2019 – 2023), Yönetim Danışmanlığı Hizmetleri Çalışma Grubu Raporu, Ankara 2018