- November 10, 2022
This an article in our series on opening bank accounts in reliable jurisdictions. Find out in our interview with Leyla Shoman from Global PARTNER how to open a bank account in Turkiye.
1. What is the standard procedure for opening a bank account in Turkiye?
Whether individual or company is opening an account a tax number has to be obtained in order to open a bank account first. As a private person you also may have to provide passport translations and foreign residence certificates. For a company the Director or Chairman of the Board of Directors can open the bank account. Passport translations, tax number, foreign residence certificate, tax plate, circular registration, and newspaper activity certificate. Then the bank account is opened in accordance with the banking law, but it cannot be guaranteed, as the bank management decides in the end if the bank account is opened or not.
2. What documents are required? Who can open an account?
- Passport translation
- Tax number
- Foreign residence certificate
For companies (Director or Chairman of the Board of Directors has to open it):
- Passport translation
- Tax Number
- Foreign Residence Certificate
- Tax plate signature (declaring income of the tax payer and which tax category/bracket he/she belongs to)
- Circular registration (document containing signature samples and information on the signatory and his/her authority)
- Newspaper activity certificate (public database updated daily by the Union of Chambers and Commodity Exchange of Turkey, containing official updates on company names, personnel, shareholders, etc.)
- Operating certificate (government-issued document that confirms that the company is carrying out their business legally)
The latter 4 items will be obtained in Türkiye usually within 4 working days.
3. Is the Director of the Russian company personally needed or can it be via power of attorney?
It is not possible to open a bank account by proxy or bank account by power of attorney. When opening the account for the first time, the company Director has to come, after that accounts can be managed by power of attorney if desired.
4. Does the company have to open a local entity (LLC) and/or have a local General Director in order to open an account?
There is no need to establish LLC company, but in terms of opening bank accounts, activating the company and for the bank to have trust in the client, our suggestion is to establish the company first via a Turkish Person, put it into operation and then hand over the company to the actual owner. During the opening phase, being a Turkish citizen in a company makes things easier in today’s conditions, but the most important thing is that bank does not provide the necessary convenience to every Turkish citizen (but Global Partner is a very trusted and established partner who will be able to support with this).
5. What are the steps and requirements to open/register a company?
First of all, you need to decide if you will register the company via a Turkish national for the stage of registration (with handover later) or as a foreign (e.g. Russian, etc.) national. Then passport translation procedures and tax number is taken for the owner (which will be done locally), 5 photographs are taken. Afterwards, a power of attorney is taken for the establishment, all processes are carried out by us temporarily, then the company is delivered/hand-over to the customer with everything is ready.
6. How long does it take to open an account?
For Turkish citizen 1 day. Foreigners 1 month or may not open at all.
7. Is it possible to transfer money from/to Russia or is there a risk that these transfers will be blocked because of the sanctions?
Unfortunately USD transfer is not possible. But we support our solution partner bankers on Ruble and EURO.
8. Are there currently any sanctions in force against Russia, Russian companies or individuals limiting them to open bank accounts?
There is no sanction on the part of the state, but the banks are very cautious and may not open accounts for Russian citizens. Here we suggest the registration of an LLC via a Turkish national to bypass that risk.
9. Have you already assisted Russian companies in opening bank accounts?
Yes, we have customers from Russia /Ukraine / Kazakhstan/ Turkmenistan/ India /Afghanistan/Iraq/Saudi Arabia etc.
10. Is it possible to issue a virtual corporate card for making online payments (for example to pay for Adobe Photoshop and other online services)?
After bank accounts are opened, the bank issues a debit card, this card contains a VISA or MASTER infrastructure and has validity if money is deposited and used. If the bank trusts the company and the owner, the credit card is given.
11. Do you need a local mobile SIM card for approving bank operations (signing bank payments)?
After the establishment of the company, a mobile line will be purchased from a Vodafon or Türkcell type operator and a sim card will be taken for banking transactions for mobile and web internet transactions.
12. What banks would you recommend for opening accounts for Russian companies and individuals?
Note: based on which ones provide more favorable conditions for Russian/international businesses, less paper work, but with a high reliability level etc.?
Ziraat Bankası, Ziraat Katılım Bankası, FİBA BANK, Aktif BANK, Emlak Katılım BANK, Halk Bank
13. Is it possible to open an account as individual person (not a company) and can you assist with this as well?
Yes, the account can be opened in Turkey first of all we have to get a residence permit then the bank account can be opened.
14. How can Russian individuals/companies manage their accounts in Türkiye from abroad? Are there options for online banking provided with all banks?
Mobile and internet can be managed to notify the bank in advance, SMS password should be provided , but high amount of transfers are not made from mobile or web , signed instruction is required or a person should be given a special power of attorney here.
15. Could you describe in a sample case how the process works, including timelines etc. for interested clients to get a more clear picture what they will have to expect?
Company establishment takes maximum 1 week . Residence permit transactions between 1-6 months and then bank account opening transactions 1-5 days without a residence permit here it is not possible for a Russian citizen to open a bank account due to the sanctions, when everything returns to normal, all transactions are completed between a maximum of 1-10 days .
Together with our reliable and professional partner in Turkiye (Global PARTNER) we’ll find the best way to support your company, to ensure smooth operations and reduce the sanction risk! Contact us for questions or a quote.