Türkiye Payroll Services

At Bradford Jacobs, we navigate the administration of the Turkish payroll system for you. We do the work, so you do not have to.

Turkish Payroll

It is essential for companies planning to run Payroll Services in Türkiye to have a clear plan and make the right moves from day one. The Republic of Türkiye straddles continents – a bridge between Europe and Asia – which makes it a prime target for expansion by foreign companies looking to widen their economic horizons.

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Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into the economy, especially when it comes to operating payroll. Bradford Jacobs’ specialists become your employees’ effective Employer of Record for all these issues while they remain under your daily operational control.

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Available Turkish Payroll Options

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Türkiye to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Türkiye. However, this does require hiring dedicated HR staff who understand Turkish employment and compliance laws.
  • Türkiyes’ payroll processing company – If you are considering outsourcing, then working with a Turkish payroll company will help in processing your payroll – but not when it comes to compliance.
  • Türkiyes’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Türkiye. We take the administrative stress off your shoulders so you can focus on what you do best.

Foreign companies establishing their presence in Türkiye are in a prime position for further expansion. Its geographical location with coastlines on both the Black Sea and the Mediterranean makes Türkiye a “stepping stone” between Europe and western Asia. The potential is obvious, but challenges are inevitable, and initially, they will revolve around payroll, whether companies import staff into the country or recruit inside Türkiye.

Employment laws, payroll and tax regulations are areas where you cannot afford mistakes – and the demands are even greater where foreign companies establish a subsidiary as their route into Türkiye. The typical choice is establishing a limited liability company (Ltd. Şti.) as a subsidiary to operate payroll for staff. The subsidiary will operate under the new Turkish Commercial Code (TCC). Taking this major step requires an in-depth understanding of the procedures for registering employees. These include the following:

  • Register employees with the Social Security Institution (Sosyal Güvenlik Kurumu, SSI or SGK) one day before the first day of employment at the latest.
  • Newly-established companies have one month after incorporation to register employees with the SSI/SGK.
  • Register employees with the Turkish Revenue Administration (Gelir İdaresi Başkanliği GİB).
  • Verify local employees’ national identity number, which doubles as their Tax Identification Number, TIN (Vergi Numarasi).
  • Foreigners in Türkiye for more than six months must obtain a TIN via the Central Registration System (Merkezi Sicil Kayit Sistemi, MERSIS).
  • Recruiting non-Turkish citizens requires completing extensive work permits, visas and residency requirements.

Foreign companies setting up subsidiaries in Türkiye must meet various requirements before operating payroll services in Türkiye. First is establishing a subsidiary, usually a limited liability company (Ltd. Şti.), which operates under the new Turkish Commercial Code (TCC). Türkiye formally changed its name (from Turkey) in June 2022 and is recognised as such by the United Nations.

Establishing any company overseas inevitably involves dealing with red tape. In Türkiye, for example, procedures to set up a limited liability company include:

  • Since implementing the TCC, all registration has been handled through the Central Registration System (Merkezi Sicil Kayit Sistemi, MERSIS).
  • Register with MERSIS and check the availability of a unique company name; obtain a tracking number for registration and compile the subsidiary’s Articles of Association to comply with MERSIS guidelines.
  • Attend Trade Registry Office or public notary to have Articles signed by shareholders and witnessed; founders’ declaration to be signed by founders.
  • The minimum share capital is TRY 10,000 (€548, US$556). However, 0.04% of the share capital must be deposited into a bank account as a fee for the Turkish Competition Authority (anti-monopoly fee).
  • A corporate bank account is needed before starting the registration process.
  • Please provide all required and notarized documents to the Trade Registry Office with the MERSIS tracking number, and with their approval, the company becomes a legal entity.
  • Registration of business address through MERSIS.
  • Register with the Turkish Revenue Administration (Gelir İdaresi Başkanliği GİB) to obtain the Tax Identification Number, TIN (Vergi Numarasi).
  • The formation of the company must be published in the Trade Register.
  • A public notary or the Turkish Consulate will verify the signatures of individuals authorized to represent the company.
  • The company must register with the Social Security Institution (Sosyal Güvenlik Kurumu, SSI or SGK), which can be done through MERSIS.

Once established, entities must register with the relevant district tax office and the provincial social insurance authority and obtain necessary workplace permits from the appropriate municipality. Companies intending to trade must register with the local Chamber of Commerce and those involved in production operations with the Chamber of Industry.

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