(September 21, 2020)--A dynamic and culturally diverse hub, Turkey is home to 13 World Heritage Sites and some of the most ancient and most significant sites in all of human history. Today, it stands at the crossroads between the Eastern
and Western civilizations and provides investors with countless opportunities for expansion. Whether you decide to set up a full-fledged company to do business in Turkey or to arrange for a small team to handle on-site operations, you may find your grasp on recruitment and payroll in Turkey to be insufficient. This is where an umbrella company comes in, offering tailored solutions to assist foreign investors in their expansion.
Legal Structure, Recruitment, Payroll in Turkey: What are the Challenges?
As recruitment in Turkey cannot happen without a legal structure in place, many opt to establish a company or subsidiary there, big or small, to be able to do business. To that end, a number of documents need to be drafted and notarised by the competent local authorities. To handle anything from payroll in Turkey to paying taxes and more, the company will require a bank account where the minimum share capital should also be deposited. Finally, a registration fee needs to be paid to the Turkish Commercial Registry, which will issue a tax registration number and set up the new company’s Social Security Institution declaration. As language often constitutes a barrier for foreign investors wishing to do business in Turkey, an umbrella company such as Azkan Group may be called up on to simplify all these processes.
Payroll in Turkey is usually another source of complications as new employees must be registered with the SSI, and a contract drawn up, taking all legal aspects into account. From working hours to period of employment, rest days and income tax specifications, this binding document sanctions every last detail pertaining to recruitment in Turkey. Once again, an umbrella company can assist newly established companies.
Is Opening a Company the Only Way to Do Business in Turkey?
While umbrella companies excel at helping foreign investors set up new joint stock companies, limited liability companies, branches, subsidiaries, liaison offices and other structures, this is far from the full extent of their services. What makes them such a convenient option for those looking to test out a new market is that they can substitute themselves for any company, acting in their name on Turkish soil.
By having these experts handle recruitment and payroll in Turkey, for instance, Turkish workers can be employed by foreign companies without them having to set up a legal entity. Instead, their official employer is the umbrella company, from whom they also receive their salary. This allows businesses to operate within the Turkish market in little to no time and to rest assured their affairs are in capable hands.
Thanks to this system, recruitment in Turkey is greatly facilitated as these specialists have access to an immense talent pool from which they can draw the perfect candidate for the position that needs to be filled. Handling the recruitment process in a country where the habits and customs are unknown to you is not advisable. Umbrella companies, on the other hand, are used to selecting workers based on the expectations of Western businesses. They find the best talents Turkey has to offer and match them to a project or company they know will appreciate their unique profile.
If you are looking to expand and to start doing business in Turkey, be sure not to venture into it alone and to take full advantage of services designed with the best interests of foreign investors in mind.