10/10/2023

Is the creation of a company in Turkey obligatory to recruit a Turkish employee?

turkish employee

No, it is not obligatory to create a company in Turkey to recruit a Turkish employee. There are alternative methods for employing Turkish workers without establishing a separate legal entity in the country. Here are a couple of options:

  1. Employer of Record (EOR) Services: You can utilize EOR services provided by a third-party company in order to hire Turkish employee. EOR companies act as the legal employer on your behalf, handling all payroll, taxes, and employment-related obligations. This allows you to hire and manage Turkish employees without the need to set up your own company in Turkey. Just to keep you informed, Azkan Group offers an Employer of Record (EOR) solution in Turkey: Azkan takes care of the entire recruitment process of your Turkish employee. Additionally, we recommend managing your employees’ payroll on your behalf. In practice, this means: Azkan will oversee the recruitment of your employees. We will establish employment contracts with them and handle salary and tax payments. If necessary, we can also arrange for car rentals on their behalf. This solution provides you with a hassle-free way to employ individuals in Turkey without the need to establish a separate entity.
  2. Subcontracting or Freelance Contracts: In some cases, you may be able to engage Turkish workers as subcontractors or on a freelance basis. This approach does not require you to establish a formal company in Turkey. However, it’s important to be aware of the legal and tax implications of such arrangements, as they can vary based on the nature of the work and the individual’s status.
  3. Joint Ventures or Partnerships: If your business is open to collaboration, you might consider forming a joint venture or partnership with a local Turkish company. This can provide a legal framework for engaging Turkish employees under the umbrella of an existing entity.

While it’s not obligatory to create a company in to hire Turkish employees, the specific approach you choose should align with your business goals, the nature of the work, and the legal and tax regulations in Turkey. It’s essential to consult with legal and business experts who are well-versed in Turkish labor laws and regulations to ensure compliance and make the right decision for your specific situation.

Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.