In today’s article, we will discuss the place of the sole proprietorship in companies in general and touch on the details of the establishment of a sole proprietorship. First of all, briefly, there is no expense other than notary costs and electronic signature for some sectors in the establishment of a sole proprietorship, and the establishment can be completed in 1 day if information is given during the day.
According to the Commercial Code in our country, it is possible to divide companies into capital companies (limited liability companies, joint stock companies and companies whose capital is divided into shares), sole proprietorships (sole proprietorships, collective companies, ordinary companies, ordinary limited partnerships) and cooperatives in terms of their legal structures.
The main factor that distinguishes capital companies from sole proprietorships is which of the capital and individual elements is at the forefront. For example, in a limited liability company, the subscribed and paid capital is of primary importance, while in a sole proprietorship, the partner himself/themselves is important.
Sole proprietorships, which are often referred to in our society, are one-person businesses. In these companies, the owners of the company have unlimited liability with their assets against their debts. The liability in a limited liability company is limited to the assets owned by the company, and the responsibility of the partners consists of paying the capital they committed while establishing the company.
Sole proprietorships are taxed on their gross earnings at the end of the period, as the earnings increase. This issue, which is generally known as income tax brackets in the society, means that as income increases, the tax rate also increases.
Requirements for setting up a sole proprietorship :
1-Address: If you own a house, if you can prove it with a title deed, it is possible to open a home office sole proprietorship with the status of owner. If you are a tenant, you must notify the landlord when you open a business where you are a tenant and issue a new lease contract specific to the opening of the company. Because the owners have to report the residence and the workplace in their annual income tax returns as having separate characteristics. If you open a company where you are a tenant, you will have to pay withholding tax of 25% of the net amount paid from the bank written in your lease contract. This withholding tax is reported every 3 months with a concise declaration (for a company without workers). If neither option is suitable for you, you can solve this address problem by renting a virtual office without withholding tax or owner problems. I recommend that you contact us and get information about how a good virtual office service should be.
2-Field of Activity: These codes, which consist of 6 digits as NACE codes related to the work you will do, are written on your tax plate and show your main activity. In order not to be indecisive about this, you can search by typing words related to your activity from the link below:
https://bilgibankasi.ito.org.tr/tr/bilgi-bankasi/nace-kodu-arama
3-Opening transactions can be done online via your e-government. However, in order not to make wrong choices in this regard, it will be beneficial for you to consult a financial advisor. After your opening is made and your tax plate is issued, you must obtain a signature declaration and issue an accountant’s power of attorney. Apart from notary costs and electronic signature in certain sectors (couriers), there is no special cost for the opening of a sole proprietorship.
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.
