Sabadell International Business
Exporting to Turkey
Opportunities for Spanish companies in Turkey
- This is a dynamic society with a large percentage of young people.
- Its economy is dominated by the private sector.
- Major industrial base of both business holdings and medium- sized/family companies.
- Key strategic position for developing other markets
- Growing middle class demanding new goods and services.
- Sound local financial system closely supervised by the financial authority and the Central Bank.
- High current account deficit.
- Low rates of private savings and dependence on foreign financing.
- Lack of natural resources.
- There is no uniform distribution of income, which entails major social imbalances.
- The Turkish government is undertaking an ambitious programme of infrastructures with major projects in different sectors.
- Right to transfer and repatriate sums in foreign currencies.
- Systems of aid and tax incentives for investment.
- High level of reserves at the Central Bank, tax deficit kept to low levels.
- Maintenance of high rates of growth.
- Great activity of Turkish companies abroad, Open to new markets.
Banco Sabadell in Turkey
Banco Sabadell was a pioneer in Turkey, since it was the first Spanish bank to become established in the country in February 2006, thus culminating the work done over more than two decades.
This long-term vision and extensive experience have gained the recognition and respect of Turkish banks and the corporate sector. Thanks to this work and its in-depth knowledge of the Turkish financial-economic system, it has become a reference for companies wishing to do business in the country, either by their physical presence and incorporating a local company or using contacts with their Turkish counterparts
- Support for activities in the country through a personalised service provided by a highly-experienced local team.
- Support in updated information on legislative, commercial and financial aspects.
- Holding trade fairs and tenders in different sectors.
- Assistance and follow-up of operations, projects and tenders.
- Assistance in contacts with local Turkish companies.
Business structure in Turkey
Incorporating a foreign company
The new Turkish Code of Commerce, in force since July 2012, allows incorporating both public and limited companies with a single shareholder.
Companies established in accordance with other countries’ law are authorised to establish representative offices. Their main limitationis that they cannot perform any activities generating income and all expenses must be covered by contributions from abroad. They are not subject to payment of corporate tax as they do not have any earnings. Representative offices are authorised for renewable three-year periods.
The BS representative office gives its support in the process of incorporating a company in the country and in establishing contacts with local financial entities.
Incorporating a Turkish company is a fast and simple process: one only needs to provide the documents required
A representative authorised to incorporate this has to be appointed, and be a resident in Turkey. The idea of the branch is to keep absolute control over the company’s business with no minority shareholders. Under the present Code of Commerce their interest lies in taking part in tenders.
Incorporating a Turkish company
Under Turkish law there is no difference between companies based on the source of their capital: all have the same rights and obligations.Their company forms are very similar to the ones used in the EU:
at least one partner (natural person or legal entity) and a minimum capital of 50.000 TL.
Limited Liability Company
minimum capital of 5000 TL.
Means of payment in Turkey
Exports to Turkey
It is advisable to guarantee collection to the greatest possible extent.
- Documentary Credit:
allowing the seller to ensure payment prior to shipping the goods. Discount option (forfaiting) by Banco Sabadell for the LC managed by this bank.
collection management of trade documents with purchaser by the bank in Turkey. Generally with sight payment or draft.
issued by Turkish institutions and counter- guaranteed by Banco Sabadell. Buyer credit:
- Credit for purchasers:
with the guarantee of a local bank/Turkish company managed by BS as lender to the Turkish company and sight collection from the Spanish company.
Imports from Turkey
- Documentary Credit:
bank promise to pay contingent upon submission of proof of export documents.
- Import remittance:
collection management of commercial documents with the buyer by the Spanish bank.
- Simple transfer:
common meansof payment and collection. Several leading Turkish entities hold their accounts in euros in Banco Sabadell. This simplifies transfers, as no intermediary bank is necessary, with the resulting reduction in cost and time.
International negotiation protocol in Turkey
- It is advisable to establish personal relationships and try to maintain them over the course of time.
- Representatives of Spanish companies making any commercial contacts must have decision-making capacity, as their Turkish counterparts have this.
- Despite having a friendly nature, Turkish people tend to be very formal in their dealings.
- Flexibility in proposals during business as well as in payment forms and terms. A high-level after-sales service. must be offered.
- Negotiations with public companies are more complicated and drawn out over time. Ensure continuity for relations.
- It is important to have a local agent, and, as far as possible, to integrate this person in the Spanish company as sole agent