General Information on Opening a Bank Account in Türkiye for Companies with Foreign Shareholders

1- No Prior Authorization Required for Company Incorporation in Türkiye if Not a Private Sector

Foreign persons who will not carry out commercial activities in a specialized field may establish limited liability or joint stock companies with foreign partners in Turkey without prior authorization.

2- Company Shareholders are not Required to Reside in Türkiye

Foreign shareholders of limited liability and joint stock companies may reside in Turkey or abroad. It is not mandatory for them to reside in Turkey.

3- Establishment of a Company with Foreign Partners in Türkiye Takes 5-10 Days

After the documents required for company establishment procedures are prepared, the establishment procedures can be completed between 5 and 10 days.

4- Bank Account Can Be Opened When Company Establishment is Completed

After the company establishment process is completed, the authorized signatory manager of the company can go to the banks in Türkiye and proceed with the opening of a bank account in the name of the company and his/her person.

Number of Banks and Branches in Türkiye

There are 58 banks operating in the Turkish banking system. There are 35 deposit banks, 17 development and investment banks and 6 participation banks.

In March 2023, the number of branches in deposit banks and development and investment banks was 9,667. In the same period, the average number of branches per bank in deposit banks was 274. The number of employees per 100,000 people was 224. The number of branches per 100,000 people was 11.3.

Number of Employees in Banks

As of March 2023, the number of employees in deposit banks and development and investment banks was 191,209.

The ratio of female and male employees in the banking sector is 50.8 percent and 49.2 percent, respectively.

As of March 2023, 79 percent of employees are graduates of higher education institutions, while 9 percent have completed master’s and doctorate programs. This rate is 11 percent for secondary education.

5- Bank Account Opening is Authorized after Examination

After the documents and information required for the opening of a bank account are submitted to the bank, the bank transmits these information and documents to its headquarters or its affiliated unit and waits for approval for the account opening.

6- Bank Account Opening Takes Between 1-30 Days

The approval process may take between 1 day and 1 month depending on the nationality of the persons, the documents submitted and whether there are any deficiencies in the information provided.

7- Company Manager must be present in person at the Bank for Bank Account Opening

During the first application, the company manager must be present in person at the bank branch and sign the documents.

8- An active GSM line must be reported to the Bank

One of the important issues for banks is the existence of a mobile phone line obtained from GSM operators operating in Türkiye. This is an important issue since banks carry out the approval processes related to banking transactions through mobile phones. Even if a bank account is opened, internet and mobile banking authorizations may be closed if the mobile line cannot be obtained or if the line is inactive or turned off in the following periods.

9- Bank Transactions Should Be Based on Commercial and Real Transactions

It is important that transactions in the bank accounts of foreign-owned companies are based on a real business transaction. In some special cases, banks may request invoices or other legal documents from the company for incoming and outgoing funds.

10- Open a State/Public Bank Account for Tax Payments

In Türkiye, tax payments can be made through public banks or by credit card. However, since making tax payments by credit card is not always a solution due to limit restrictions, companies are also required to open an account with a public bank.

In Türkiye, there is no difference between opening an account with a public (state) bank and opening an account with a private bank.

Public banks operating in Türkiye are as follows;

1- T.C. ZİRAAT BANKASI A.Ş.

2- TÜRKİYE VAKIFLAR BANKASI T.A.O.

3- TÜRKİYE HALK BANKASI A.Ş.

Contracted banks in Türkiye where Tax Payments can be paid by bank account or credit card and the type of payment are indicated in the table below.

CONTRACTED BANKS WHERE YOU CAN PAY YOUR TAX

11- Proof of Account Movements may be requested by the Bank

Following account opening, banks may request additional documents and information regarding the field, sector, country, customers and suppliers in which the companies will operate and the nationalities of the real beneficiaries with whom they are associated.

12- Prohibited and Embargoed Businesses and Transactions May Cause Bank Account Closure

It is important to provide the information and documents requested by the banks in an accurate and transparent manner. In the event that misleading information and information is later revealed, banks may ask the company and its foreign partners to close the accounts in their own banks.

It is also important not to establish goods trade and service relations with countries, persons and their related persons with whom exports and imports are prohibited or restricted.

13- Ranking of Banks in Türkiye by Asset Size as of 31.03.2023

Ali KARAKUŞ

CPA, Independent Auditor

Karen Audit & Consulting

Istanbul, Aug. 11, 2023

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.