Hello, in today’s post, we will discuss how to establish a sole proprietorship in a simple manner. After logging into the e-government system, when you search for ” Gerçek Kişiler İçin Vergi Dairelerince “Mükellefiyet Tesis Edilmesi (İşe Başlama Bildirim Talebi),” you will be directed to the relevant page.
When you enter this page, you will need to know some key points:
In which main activity area will you operate?
For this, you can search for the NACE code list on Google and visit the Revenue Administration Presidency website to find the most suitable activity definition for you.
Lease contract information for the location where you want to open your sole proprietorship.
Here, the crucial point to note is that you must inform the tax office of starting work within 10 days at the latest. This means that the date of your lease contract should not be more than 10 days before the date of your notification. Another important issue is that if you rent your office from an individual, it implies that you will have withholding tax payments. However, if you rent it from a company, you will not have withholding tax payments, and you will be invoiced with VAT.
Simple method or actual method?
In Turkey, tax laws classify certain activities under the simplified method and others under the actual method. Although these conditions change every year, generally, they are as follows: you must personally perform the work, your rent amount should be below certain limits set each year, and your buying and selling figures should remain below certain limits set each year. It would be beneficial to seek expert advice on this matter because the figures and conditions change annually. For example, for a business engaged in commercial activities in 2024, your annual purchase should not exceed 690,000 TL, and your sales should not exceed 1,100,000 TL. The rent amount should not exceed 55,000 TL in metropolitan cities and 34,000 TL in other cities.
After entering all the information, you can complete the registration process and wait for the tax office to come for inspection to your address. You can also read the article https://ahmetfarukaltindas.com/en/how-to-set-up-a-sole-proprietorship/ for visual details on the subject.
