1. Travel Agency Ltd Company
Istanbul-TURKEY
1 Tax
a. For selling the products
There is no tax for foreigners if the invoice is addressed to abroad. But for the extra expenses
in Turkey they pay V.A.T and Private Consumption Tax which are included in the prices of
goods and services.
There is 8% percent tax for accommodation, 18% tax for transportation and 18% tax for
alcohol consumption for Turkish citizens on their expenses in Turkey. There is no tax for their
expenses in abroad .
b. Founding the company
There is no direct tax to be paid directly at the founding stage of the company but there are
some other fees or charges.
The company pays 20% income tax on its profit annually.
The necessary documents and fees will be explained in the 2. and 3. titles below.
2 Permits
a. Which permits are necessary
A person who wants to run a Travel Agency has to get the following permits and follow the
procedures . The procedures are all to be done together.
1. Make a petition to Culture and Tourism Ministry with a name certification of the
company.
When the application is approved, it is told to the person and TÜRSAB. (Turkey Travel
Agencies Association)
2. The person has to apply to TÜRSAB in 30 days after the approval with the following
documents in order to have a Travel Agency Business Licence.
a. The original and 1 copies of the documents that are recieved from the Culture and
Tourism Ministry,
b. Draw up a petition,
c. Work place licence,
d. Business Plan approved in Trade Registry Gazette,
e. Trade Registry Gazette that has the list of authorized signatures,

2. f. Documents for the employees,
- ID cards‘ copies
- Criminal records
- Social Security Institution Number
g. Declaration of guarantee (paid to the Culture and Tourism Ministry 3030.- €)
When you are approved you have to pay ( 12.615.- €) as club money to TÜRSAB.
3. Notary Procedures
a. All partners have to be ready at the notary,
b. 8 copies of the business plan,
c. Get 2 copies of authorized signatures list at the notary,
4. Trade Register Procedures
a. Make a petition,
b. 3 copies of the business plan,
c. Manager’s authorized signature list,
d. Partners‘ ID cards copies,
e. Partners‘ residence certificate,
5. Tax Administration Procedures
a. Starting in business form,
b. Trade Registry Gazette receipt,
c. Manager’s authorized signature list,
d. Partners‘ ID cards copies,
e. Partners‘ residence certificate,
f. Lease agreement for office.
6. Chamber of Commerce and Industry Procedures
a. Chamber of Commerce application form,
b. Trade Registry Gazette,
c. Manager’s authorized signature list,
d. Business Plan approved by notary,
e. Partners‘ ID cards copies,
f. Partners‘ residence certificate
7. Municipality Procedures
a. Work place licence,
b. Environment clean-up tax

3. c. Lease agreement for office,
d. Chamber of Commerce certificate,
e. Tax Registration certificate,
f. Trade Registry Gazette
b. What kind of qualification is necessary to get it
The company owner;
a. Has to be over 18 years old.
b. Mustn’t be arrested because of infamous crime or fraudulent bankruptcy,
c. Has to have the efficiency of being a businessman
d. Mustn’t be fined for the 30th law clause
The employees;
a. Has to have a high school, college or university degree on Tourism and Hospitality,
b. Foreign language efficiency certificate,
c. Tour Guide certificate given by Culture and Tourism Ministry.
c. Time for getting the permits
It is usually more than 35 days.
d. Costs for the permits
All the permits and procedures will cost approx. 1.500.- € and the club money to TÜRSAB
12615.- € and Declaration of guarantee (paid to the Culture and Tourism Ministry 3030.-
€)
e. Is it necessary to have a business plan?
Yes, it is essential and it has to be approved by a notary.
what needs to be included in the business plan
1. Names , Surnames, Nationalities and Addresses of the partners, (at least 2 partners)
2. Name of the company (approved by Culture and Tourism Ministry, (The subject’s been
told above Permits1)
3. Aim and Subjects, (work field of the company has to be clearly defined)
4. Location of the Headquarters and branches of the company,
5. Duration of the company,
6. Capital, (at least 2170.-€)
7. Announcement on the Trade Registry Gazette,
8. Management of the company, ( ....... is the manager of the company for ......years)
9. Representation of the company, (company is presented by the manager)
10.Accounting period, (starts on 1st Jan. and ends on 31st Dec.)
11.Profit distribution,
12.Reserve fund,
13.Legal provisions. (Turkish Trade Laws are accepted in other situations that are not
written in this plan)

4. 3 Finance
a. Interest for business loans
1,39%
minimum loan 1500.-€ maximum loan 21.600.-€
b. Subsidies
There is not any subsidy for Travel Agencies. Subsidies are mostly for hotels, holiday villages
and holiday resorts.
c. Capital necessary for founding the company
rent 2150.-€
accountant 100.- €
salary 1640.- €
notary 1000.- €
capital 2170.- €
türsab 12615.-€
culture and tourism ministry 3030.-€
municipality (environment clean-up tax, work place certificate) 500.- €
unforeseen expenses 5000.- €
total 28025.- €
(1 € = 2,31 TL assumed for the calculations on this page)

5. 4 Running Costs
a. Costs per employee ( 1 high trained person)
i. Income average 1082.- €
1082.- € net gain per month means gross salary is about 1640.- €
ii. Tax income tax paid by employee
301.-€
Stamp tax paid by employee
11.- €
iii. Insurance Social Security Institution Premium paid by
employee
229.- €
Unemployment Insurance Contribution paid by
employee
17.- €
Social Security Institution Premium paid by
employer
319.- €
Unemployment Insurance Contribution paid by
employer
32.- €
Summary : A well educated employee who gets about 1082.- € net gain per month will cost
employer
1640*12months = 19680.- € a year gross salary
319+32 = 351 * 12months = 4212.- € a year insurance
19680+4212 = 23892.- € per year.
b. Cost to rent an office( per m2)
The average cost to rent an office per m2
is 50.- €
c. Advertising Costs
Internet newspaper
Cost per click 0,20.- cent 1 line/cm is 35.- €
(1 € = 2,31 TL assumed for the calculations on this page)

6. 5 Rights for employees
Hire
*Employer and the employee make a contract.
*Employee has accepted the rules by the employer when he signs the contract.
*All employees must have a Social Security Insurance.
*All employees have the right to take medical service.
*Private medical insurance can be done by the employer if necessary.
*Employer has to set up good working conditions for employees.
*Employer gives bonus, if it is agreed on the contract.
Annual pay vacation.
*Employer decides the date of holidays.
*Employee cannot go on a holiday before completion of 1 year.
*After completion of 1 year employee can go on a holiday for 2 weeks.
*After completion of 5 year employee can go on a holiday for 3 weeks.
*After completion of 15 year employee can go on a holiday for 4 weeks.
If the employee takes sick leave for a couple of days it cannot be deducted from annual
pay vacation.
Fire
*If employee has worked for 6 months, he has to inform employer 2 weeks before.
*If employee has worked between 6 months and 1,5 year, he has to inform the
employee 4 weeks before.
* If employee has worked between 1,5 year and 3 years, he has to inform the
employee 6 weeks before.
*If employee has worked 3 or more than 3 years, he has to inform the
employee 8 weeks before.
*If employee quits the job before 1 year at work, he has no right to ask for severance
pay.
*If employee quits job himself, he has no right to ask for severance pay.
*If employee has been fired by the employer by valid reasons, he has no right to ask
for severance pay.

7. *If employer informs the employee 1month before and fires him, employee has the
right to get severance pay.
*If employer doesn’t inform and fire the employee without a valid reason, employee
has the right to ask for severance pay and termination pay.
*If the company has moved to another town or city, employee has the right to ask for
his severance pay and quit job.
*If employee has asked for quiting, he has two hours time everyday to look for a new
job.
*If employee gives birth to a baby, she can have 8 weeks annual pay vacation before
birth and 8 weeks annual pay vacation after birth. She can have 6 months vacation
without payment after her 8 weeks annual pay vacation.
*After giving birth, mother employee has 2 hours every day for milking the baby.
Severance pay and termination pay are calculated according to the total time passed at
work and the last salary of the employee.
Summary
We tried to explain what should be done for founding a Limited Company working as an A
Class Travel Agency in Turkey. It is better to work with a lawyer and an accountant to do the
procedures correctly and in time. Foreigners can be a partner of the company as well.
According to the new laws after July 2013 a person can own and run a Limited Company
himself. He will not need to have any partners.
We will be looking forward to seeing you as a young entrepreneur in Turkey.
Best regards.