Establishing a Money Transfer Company

Are you looking to establish a money transfer company in Turkey? If you are interested in setting up a company dedicated to this matter, you can refer to the details mentioned in this article.

Money transfers from outside Turkey and vice versa have become one of the most sought-after sectors for many investors. This is due to the residence of nearly 2 million foreigners of various nationalities in Turkey, in addition to the annual entry of 45 million tourists. Given the significant Arab community in Turkey and their desire to transfer money from their countries to Turkey, and due to the complexities of banking transactions, this sector has become a leading field for Arab communities.

How to Open a Bank Account for Money Transfer Companies?

Initially, it’s crucial to note that when establishing a money transfer company, the transfers should exclusively be made through the company’s bank account. Due to some companies engaging in illegal activities in the past, many banks now refuse to open accounts for such businesses. To overcome this challenge, you should clarify the operations and activities you will undertake through your bank account, especially for a money transfer company. It’s essential to build trust with bank officials and have a reputable reference (company or businessman) that the bank can consult regarding your matters. This will facilitate the bank account opening process. Our company can provide full technical support in opening a bank account for your company, simplifying procedures through our affiliated banks.

Taxes on Money Transferred to Turkey from Abroad:

One of the incentives offered by the Turkish government to money transfer companies is the exemption from taxes on money transferred from outside Turkey. This benefits your company in two ways:

1. No fees or taxes are incurred when transferring money through your company’s bank account, reducing your company’s expenses.
2. The ability to offer better rates and prices for money transfer operations to your customers.

Is Money Transfer a Permitted Activity in Turkey?

Money transfer in Turkey is not a permitted activity unless it goes through the Turkish Financial Regulation and Supervision Agency. Some companies licensed by this agency include:

• Western Union
• Money Gram
• BPN
• UPT
• Pay U

These companies, for instance, conduct money transfer and electronic collection operations legally and are licensed by the Turkish Financial Regulation and Supervision Agency. You can also engage in money transfer activities by:

1. Establishing a money transfer company and obtaining an agency from one of the aforementioned companies (e.g., Western Union, Money Gram, BPN, etc.).
2. Establishing a money transfer company and obtaining a direct license from the Turkish Financial Regulation and Supervision Agency.

It’s worth noting that the first method is easier due to faster legal procedures and lower costs.

Opening a Branch for a Money Transfer Company:

The easiest way to conduct official money transfer operations in Turkey varies depending on the main transfer company. We can provide advice if you wish to open a branch for one of these companies.

How to Open a Western Union Branch:

To become a Western Union distributor, you need to establish a commercial company. The establishment of the commercial company varies based on capital and the number of partners. You can find out the prices for establishing the commercial company from here.

You should find a suitable address for your branch location, ensuring that there isn’t another Western Union branch nearby. It’s preferable to have the office in an area where money transfers are frequently requested, especially where foreigners and residents are concentrated. After these transactions, you can complete your application by adding documents such as the trade registry, passport copy, and your company’s tax plate.

There are no membership fees, but a deposit is required in the Western Union account based on the transfer operations you wish to conduct. For example, if you deposit $10,000 as security, you can conduct transfer operations up to $10,000. If the transfer operations exceed this amount, you must deposit the additional amount.

After your membership application in Western Union is accepted, you can start money transfer operations by connecting your office to the company’s central system. You will be given a username and a special login code for your company.

The example of opening a Western Union branch applies to all the aforementioned transfer companies. The most crucial procedures are finding a suitable address and obtaining approval for membership in the desired company.

Commission Mechanism on Money Transfer Operations:

The limit for a single transfer operation is $7,500. The commission is shared among three parties:

• The Western Union branch conducting the transfer (sender).
• The Western Union branch delivering the money (receiver).
• The central branch of Western Union.

For example, if you conduct a transfer operation of $1,000, a commission of $55 is collected for the transfer value. This amount is shared among the three parties: the branch conducting the transfer, the branch delivering the money, and the central branch. Western Union branches conduct about 200-250 money transfer operations on busy business days. In such cases, a profit of $1,000 can be collected.

To start working in this manner, a detailed business plan is required. It’s essential to find a good location in densely populated areas, especially with foreigners. Our company can provide consultancy services, whether in establishing a company and obtaining a license from the Turkish Financial Regulation and Supervision Agency or contracting with one of the companies like Western Union. Money transfer company establishment transactions require precision and high expertise. If you make any wrong application, it may harm you. You can contact us .