New company formation

[unipin]

Hi guys. Which area/country would you recommend? Turkey national, will do business mainly with CIS countries. Activity is trading, no crypto involved. Do you have any suggestions?

 

[Sols]

What kind of trading?

In most cases, I'd recommend starting with a local company. Focus on growing the business. If you form a foreign company and don't comply with all applicable tax laws and reporting obligations (both in Turkey and where the company is formed), you're setting yourself up for a lot of headaches in the future.

What advantages do you seek by forming a foreign company? Keep in mind that any foreign/offshore company that you own and control from Turkey is tax resident in Turkey and must pay Turkish tax.

 

[unipin]

What kind of trading?

In most cases, I'd recommend starting with a local company. Focus on growing the business. If you form a foreign company and don't comply with all applicable tax laws and reporting obligations (both in Turkey and where the company is formed), you're setting yourself up for a lot of headaches in the future.

What advantages do you seek by forming a foreign company? Keep in mind that any foreign/offshore company that you own and control from Turkey is tax resident in Turkey and must pay Turkish tax.

Trading mainly is general trading. Supplying various equipment, construction materials. I was thinking of either setting up a UAE mainland/free zone company or an Armenian free zone company. I know that in UAE to open a bank account is extremely difficult nowadays, but what about Armenia?

 

[uplana]

I know that in UAE to open a bank account is extremely difficult nowadays, but what about Armenia?

it goes hand in hand.. I would look into UAE - in both cases you will have to travel to get a bank account setup.

 

[Sols]

Trading mainly is general trading. Supplying various equipment, construction materials. I was thinking of either setting up a UAE mainland/free zone company or an Armenian free zone company. I know that in UAE to open a bank account is extremely difficult nowadays, but what about Armenia?

I'm not familiar with Armenian free zone companies but if you're looking in that region, I'd take Georgia or even Azerbaijan over Armenia in most cases. But I'd take UAE over them all because it's a much more well known jurisdiction with better banking options and a simple tax system.

But why a foreign company and not a Turkish company?

If your company is purely transactional and service oriented, it's still quite common to operate through companies incorporated in BVI (or other somewhat reputable offshore jurisdiction) for such types of businesses. Geographic proximity isn't always necessary.

 

[uplana]

But why a foreign company and not a Turkish company?

Turkey is difficult to conduct business in the time we live. At least if you do business outside of Turkey!