Sole Proprietorship Establishment

Private companies are established directly on the person and have a less complex structure compared to capital companies. However, it differs with capital companies in terms of taxation. The rate of corporate tax is fixed, this rate has been determined as 23% for the year 2022, but as the income obtained in private companies increases, it means that the tax will increase proportionally. In the part we have explained so far, we have taken into account the fact that the company generates income, that is, issuing invoices, but if the company does not issue any invoices, the stamp taxes (which is the tax that is the equivalent of filing a declaration) will still be around 2150 TL. Therefore, if we establish a sole proprietorship, if no invoice is issued by us, it means that we will pay a stamp duty of approximately 2150 TL.

Please contact us for the establishment of a sole proprietorship.

Now let’s take a look at what we need when we start a sole proprietorship:

1. Address

As with all other types of companies, an address is needed for your company. If the title deed of the house is in your name, you can directly show the home address as the company address, but if the title deed of the house belongs to one of your family, you will need to arrange a lease for yourself. If you are a tenant in the house, you can sublease, but as a financial adviser, I recommend that you inform your landlord of this situation. If you are having difficulty in obtaining an address and you need to open a company, then I would recommend you give an opening with a virtual office. We will also have the opportunity to use the invoice issued by the virtual office as an expense in your base account and VAT as a subject of discount.

2. ID Card

REPUBLIC OF TURKEY IDENTITY CARD, VALID PASSPORT FOR FOREIGNERS OR RESIDENCE PERMISSION CARD

3. Declaration of Signature

DECLARATION OF SIGNATURE FROM NOTARY AND GENERAL ACCOUNTING ATTORNEY FOR FOLLOWING YOUR ACCOUNTING TRANSACTIONS

4. Field of Activity Selection

CLEAR DETERMINATION OF THE FIELD OF ACTIVITY: We will need to determine an activity code according to the activity you will perform. This code will appear on your tax plate and will give an idea to third parties about your business. In addition, in order for the polling officer to keep a positive report after the opening, you must determine an activity code that is compatible with the work you actually do.

After all documents and information are completed, we can make your first notification via e-government and your tax plate will be delivered to you on the same day or the next day.

If you would like to consult a financial advisor regarding this or other issues, I would like to let you know that I am ready to answer your questions at my financial advisory office in Fatih, Istanbul: )