Limited Liability Companies (and anonymous companies) There are two main types of legal entities: Limited Sirket (limited company) and Anonim Sirketi (anonymous company). They have the same establishment procedures such as registration with the trade registry and publication in the Trade Registry Gazette. The directors of the company and any changes in the articles of association are also published. Anonymous companies are the widely preferred types of legal entity. For banks, financial leasing companies and some other specific fields of activity, this type is required. Anonymous companies are also used to place capital with the public through the stock exchange or otherwise.

Imports of goods and services are subject to tax at the customs clearing. Goods are considered movable and immovable, property and supplies are almost all business transactions. The KDV is applied on the invoice. The KDV born on purchases is credited against the KDV on sales. The balance is payable to the tax office in the following month. Certain supplies are exempt from tax, in particular the export of goods and services and the purchase and repair of air, sea and rail means of transport. International transport of goods may be exempted on a reciprocal basis.

Turkish resident individuals are taxed on their worldwide income. The definition of Turkish residents or assumed residents has been laid in the Income Tax Law. According to this definition; either having the residence in Turkey or, staying in Turkey more than six months in a calendar year (in 1/1.-31/12. period) is sufficient to be regarded as Turkish resident. Other individuals and so-called non-resident individuals will be subject to income tax only on earnings, income and gains earned or received in Turkey.

It is not customary to shake hands again upon departure. It is not common to say things like “Hi” or “Good Morning” to people you don’t know, while passing them in hallways or streets. They may get the wrong impression since they are not used to it. Turks may greet a close friend of either sex with a two-handed handshake and/or a kiss on both cheeks. Elders are highly respected in Turkey. If you are seated, rise to greet them when they enter a room.

You probably will not get the chance to act as host since your Turkish colleagues may insist upon doing [and paying for] all of the entertaining. When your colleagues invite you to a restaurant, you will not be allowed to pay for even part of the meal. DON’T INSIST! Only when you issue the initial invitation to a meal will you be allowed to pick up the tab—and even then you may have to resist your colleague’s efforts to take the check. If they insist, try not to give in, as it is common for guests to insist loudly and strongly many times before finally giving in.