An umbrella company in Turkey is a professional employer organization (PEO) or employer of record (EOR) service that provides a range of HR and administrative services to businesses and contractors. It allows companies to outsource functions such as payroll, tax compliance, and employment-related responsibilities.
Businesses often use umbrella companies in Turkey to streamline their operations, ensure compliance with local labor and tax laws, reduce administrative burdens, and access expert knowledge of Turkish employment regulations.
Umbrella companies in Turkey can offer a variety of services, including payroll management, tax withholding and reporting, employment contracts, visa and work permit support, employee benefits administration, and compliance with Turkish labor laws.
When a business or contractor uses an umbrella company, the company becomes the legal employer of the workers. The umbrella companies handle employment-related tasks, including payroll, benefits, and compliance, while the client business retains control over the workers’ day-to-day activities and projects.
Yes, umbrella companies can be beneficial for independent contractors who want to ensure tax compliance and access certain employment benefits. Using an umbrella company can simplify the administrative aspects of contracting.
Yes, you generally retain control over the work, tasks, and projects of your employees or contractors when using an umbrella company. The umbrella companies primarily handle administrative and compliance aspects.
The costs of using an umbrella company in Turkey can vary depending on the services provided and the number of employees or contractors. Typically, umbrella companies charge fees based on a percentage of the payroll or a fixed monthly fee. It’s essential to understand the fee structure and any additional costs before entering into an agreement.
Contract durations with umbrella companies can vary, and some providers may offer flexibility in the length of the agreement. It’s advisable to discuss contract terms with the umbrella company and ensure they align with your specific needs.
Yes, umbrella companies can facilitate international expansion by providing a compliant employment structure in Turkey without the need to establish a local entity. This can be particularly useful for businesses looking to test the Turkish market or engage remote workers in the country.
Whether to use umbrella companies or set up your own legal entity in Turkey depends on your business goals, resources, and the level of administrative complexity you’re willing to handle. Setting up a legal entity involves more control but also greater administrative responsibilities, whereas an umbrella company can offer a quicker and more streamlined option.
You can consult with our legal and financial experts familiar with Turkish regulations and your specific business circumstances to make informed decisions regarding umbrella companies in Turkey.
