Hello, today I will give general information about what you need to know before establishing a sole proprietorship. You can also set up your sole proprietorship yourself, but there are issues you need to know before doing so.
Here, first of all, you need to have a valid lease contract (if you are not a title deed holder), and you must have determined your nace code for the area in which you will operate. The NACE code is 6 digits and informs the tax office about the area in which you will operate.
https://bilgibankasi.ito.org.tr/tr/bilgi-bankasi/nace-kodu-arama
From this link, you can make a short search about your activity. For example, when you type agriculture and search, you will see nace codes related to agriculture, and you will be able to identify the nace code consisting of 6 digits that is most suitable for you.
Assuming that you have determined your lease information and activity code. Let’s look for an answer to the question of whether you will be the real procedure or the simple procedure, which is another stage
There are general and special conditions of being subject to the Simple Procedure. The conditions are as follows:
– Actively being in one’s own business or working (temporary absence from one’s job due to the use of auxiliary workers and apprentices, illness, old age, military service, travel or being away from one’s job that requires obligation such as being a prisoner will not violate this condition)
– If the ownership of the workplace belongs to you, the precedent rental price, if you have acquired the workplace by renting, the total annual rental fee;
In the regions within the boundaries of the metropolitan municipality, it should not exceed 35,000 Turkish Liras for 2023.
In other regions, that is, in regions outside the boundaries of the metropolitan municipality, it should not exceed 22,000 Turkish Liras for 2023.
Here, if your workplace will belong to you, let’s quickly explain how to calculate the precedent rent. The precedent rent must correspond to 5% of the property tax value for the rented property. For example, for a real estate with a property tax value of 1,000,000 (one million) Turkish Liras, the precedent rental price will be 50,000 (fifty thousand) Turkish Liras.
-Another condition is not to be subject to income tax in the real way due to your professional, commercial or agricultural activities. In other words, there should not be any other area where you are subject to tax in the real way.
– If you are going to sell the goods you have purchased as they are or by processing, your annual purchase should not exceed 440,000 Turkish Liras and your sales should not exceed 700,000 Turkish Liras. If you are going to deal with non-trading business, these figures should not exceed 220,000 Turkish Liras.
Please note that the figures and limits written here are for 2023, these figures are updated every year. Yes, I can imagine that dealing with this tiring and troublesome subject does not give you pleasure. If you wish, you can also consult the subject free of charge by contacting me directly from my contact information.
As Ahmet Faruk Altınş Financial Consultancy Office , we can help you with important issues that you are curious about, want to learn, and that will guide your business. For more details and to take advantage of our free preliminary consultancy service, you can contact us using the information on our contact page.
