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Establishing a Software Company Within a Technopark in Turkey
In Turkey, software companies may be established as joint-stock or limited companies by following the standard procedures. No prior permit or approval is required from a ministry or competent authority. Nowadays, many software companies are established within technoparks. The technoparks in Turkey are no different. This article talks about establishing a software company within a technopark in Turkey in detail.
Related Article: Types of Companies in Turkey.
Even though Turkey is best recognized for its huge manufacturing sector, which ranks among the world’s greatest economies, there are other industries in which international investors may participate. Information technology, or IT for short, is one of them. Foreign investors looking to start businesses in the IT industry have a variety of options since this is a large market that can be utilized in a variety of ways, one of the most promising being the Turkish software sector.
Foreign investors are encouraged to establish businesses in Turkey in a variety of areas. Retail and information and technology, sometimes known as the IT business, are two of the most popular economic sectors today. Local and international businesses relocating to Turkey can take advantage of a variety of investment opportunities in this area. In order to start a firm in Turkey’s IT industry, you must follow the rules of the Electronic Communications and Internet Laws.
What is Technopark?
A technopark can be defined as research and business centers established by at least one university and private sector representative with the aim of developing innovative products with added value. The reason why many software companies prefer to be established at technoparks is its many advantages like the following; exemption of income and corporate tax from software and R&D-related income, exemption of income tax from employee wages, and SGK employer stock support.
Related Article: Corporate Taxation in Turkey.
Technopark Suitability
Offices, which are mostly located in technoparks within university campus blocks, are allocated and rented to companies who plan on working in the R&D sector. The practices of these R&D companies are inspected in various ways and tax exemption is applied based upon the “technopark suitability” of the company’s work.
In order to build a business in a technopark, the founders must have an R&D (Research and Development) and/or innovation-based project. A company is not required to be established before the application. However, if the project gets approved the founders are required to establish the company.
Establishing a Business in a Technopark in Turkey
The technopark application project should be made into a project file that is in accord with the relevant technopark’s project application guide. The project file should contain the extent of the activities of the project, the people who are working in the project and their positions, the magnitude of the value that the project adds, and the plans of cooperation with the universities and research centers should be expressed clearly. In addition to the project file, some official documents (trade registry number, authorized signatory list, etc.) are demanded.
After the project file is complete, the founders must pay the “technopark application fee” that is determined by the technopark administration. After the fee is paid the founders must apply to the technopark administration. In this phase, the administration’s commission evaluates the R&D eligibility of the company’s practices. In the event of approval by the administration, the founders are notified and after this phase, the software company can rent an Office at the technopark and establish itself as a company.
Our company formation agents in Turkey can help you with all this process and all your other legal affairs. Contact us for more information.
Related Article: Establishing a Company in Turkey.
Why Open a Software Company in Turkey?
Many locations, such as; Istanbul, Ankara, and Izmir, can support software firms in Turkey. These are the most significant industrial hubs on a local economic level, where firms employ an automated system to accomplish their tasks. Turkish software firms collaborate successfully with other industries that require specialized software to complete their tasks.
Turkey also boasts one of the most talented workforces in the Eurasian area, making it attractive to international IT companies looking to build branches or subsidiaries here and outsource some of their activities to local software companies. Last but not least, innovation has made its way into the Turkish economy, and new areas such as; financial technology, agricultural and medical research, and development demand high-performance software that may be developed by local firms.
How To Register a Software Company in Turkey?
Setting up a software business in Turkey is straightforward with the aid of a lawyer in Turkey, from the simplest form of a sole proprietorship to the limited liability corporation. The processes to register the firm are similar to those necessary to establish an IT company, for example, and must adhere to the Electronic Communications Act‘s criteria. In some situations, the Intellectual Property Law must be followed as well.
The Information and Communication Technologies Authority oversees the operations of software firms and also grants the appropriate licenses for particular activities. If you wish to start a software company in Turkey and need help, please contact our local law office. We can help you with the company registration procedure.
Licenses for IT / Software Companies in Turkey
Regardless of the services or products an IT firm provides or creates, its operations will necessitate the use of an Internet connection, which will necessitate authorization from the Information and Communication Technologies Authority. Turkish IT businesses must adhere to the Tariff Regulation Act, which establishes the rates they must charge. Authorization for the use of specific telecommunication frequencies is required for IT firms functioning as Internet Service Providers (ISP). IT firms may, however, advertise their services on the Internet by purchasing a domain name and registering it with an approved registrar.
Final Words and Conclusions on; “Establishing a Software Company in Turkey”
If you want to establish a software company in Turkey, first you must get yourself familiar with the rules and regulations of the country. Also, do your research and investigation carefully. Do not jump into the business, take advice from the successful entrepreneurs who have managed to thrive. When you have all your facts straight, go ahead and open your software company in Turkey. If you know what you are doing, it might be very profitable for you. If you don’t want to waste time with the establishment process, you can also prefer to purchase a software company in Turkey too.
Related Article: Purchasing a Company in Turkey.
