Opening a recruitment company in Turkey is a promising business idea, especially considering the country’s strong workforce. The process of setting up such a company is simple and does not involve complicated procedures. However, entrepreneurs must be well-informed about Turkish labor laws and regulations when opening a recruitment company. Our specialists in opening a company in Turkeywill detail the procedure and highlight some essential labor regulations for recruitment companies.
Process of opening a recruitment company in Turkey
Setting up a recruitment company in Turkey first involves selecting an appropriate legal structure. The most common business structure in Turkey is the limited liability company (Limited Sirket). In order to open a company in Turkey, you must follow these essential steps:
- Select a unique business name that complies with the regulations in the Turkish Commercial Code;
- Register a local address for official documentation and correspondence;
- Deposit the minimum shared capital into a local Turkish bank account. For the limited liability company, the minimum capital is 10,000 Turkish Liras. Additionally, the capital can be fully paid in cash within 24 months following the company’s registration;
- Prepare the company’s statutory documents, such as the Articles of Association. Other documents that must be submitted include: the ID documents for shareholders/directors, proof of the registered address, or proof of the deposited capital. The documents must be in Turkish;
- Submit the documents and a registration application to the Trade Registry;
- Lastly, opening a recruitment company in Turkey requires obtaining a tax identification number (TIN) from the local tax authorities.
If your application is accepted, you will receive a registration certificate and you can officially start doing business in Turkey.
Our specialists in company formation in Turkey will also assist in the post-incorporation steps, such as registering your company’s employees in the social security system. We can also help you establish a company in Romania, through our local affiliates. In Romania the incorporation process lasts 5 days compared to 3-8 days in Turkey.
Working hours and overtime regulations in Turkey
Setting up a recruitment company in Turkey also involves being familiar with the working hours and overtime regulations. This is because your recruitment company must comply with labor laws when placing employees.
The maximum legal working hours is 45 hours/week. Usually, these hours are distributed as 7.5 hours/day over 6 days/week. However, employers and employees can agree on a different distribution as long as it does not exceed 11 hours in a single day.
Overtime is defined as any work exceeding the 45-hour weekly limit or if the daily work exceeds 11 hours. There are limits on overtime work, with a maximum of 270 hours/year. Employers need employee consent for overtime, except in emergency situations. Employees will be compensated for overtime in the form of increased wages (1.5 times the regular hourly rate). Additionally, overtime can be compensated with 1.5 hours of time off for each hour of overtime.
Opening a recruitment company in Turkey includes being aware of these overtime regulations. Please note that certain groups, such as minors or pregnant women cannot work overtime.
Our team will explain more about the labor regulations when you set up a company in Turkey.
Statistics about the Turkish labor force
Those interested in setting up a recruitment company in Turkey can find the following statistics useful. This information is from 2023 and refers to the Turkish labor force:
- The unemployment rate decreased to 9.4% in 2023, with 3.26 million unemployed individuals;
- The employment rate rose to 48.3%, with 31.63 million employed persons;
- The youth unemployment rate (ages 15-24) was 17.4%;
- 7.6% of total employment was in the services sector.
In addition, we provide payroll services in Turkey. We can also recommend to you our partner accountants in Turkeyfor assistance in tax-related matters.
Pleasecontact our team if you need more details about opening a recruitment company in Turkey.