immac

If you set up a company, how much work can you do before you breach the law that requires you to have a Work Permit.
Some say you can own it, supervise it, but not do any work. Others work openly in their business without having a Work Permit. What is the law and what is the practice?
Ian

jane2005

It's exactly as you say Immac, you can own the business and manage it, but you should not be doing any hands on work, although everyone I know does. I was even told by my accountant that I could work and it would be legal, it seems to be a very grey area.

Karyn UK

The law is that you can "manage" your company but not undertake any actual physical work.

So, theoretically, if you owned a bar you would decide how it would be run, recruit the staff, oversee the shift rota, check the books, etc etc but not serve a drink, clean a table, stock the shelves etc. For this you would employ people. You would need a manager to act as main liaison between yourself and your staff, that person undertakes all the grey area stuff like (in this example) ordering supplies - is this managing or working??

This is my understanding of it but obviously there is a clearer demarcation in some businesses than in others. For example, if you owned a web design business would designing websites fall under the remit of managing the company, if you own a hotel does receiving bookings fall under the remit of managing. There are a lot of grey areas!

Karyn

mushtaq

I find the grey areas serve a lot of useful purpose for the governments, they can pick and choose to apply the law when they feel then need to crack down, or just turn a blind eye because it serves another purpose.

catweazle

So can you set up a Ltd company and then apply for your own work permits throught
the company
to enable you to do work for that company

mushtaq

Yes, you can apply for your own work permit, but it's the same process, I don't think there are any shortcuts to getting a work permit.

If you have a company the benefit is that you could have a business without actually 'working' there, instead employ staff to carry out the work.

immac

Are there examples of how the authorities deal with people who are in this position? If I own a company, pay tax, employ staff, BUT, at some point cross some unclear line, what are the consequences, if any. Who decides the line and monitors when it has been crossed?

Ian

mushtaq

I think it depends if you have jealous competitors or a disgruntled ex-employee. But don't take my word for it, just guessing.

Andywebb

OK I am stuck between this thread and the thread for "Starting a business" if I set up a Turkish company to purchase property then use them as rental properties I assume then it would be a trading company? If I use agents to manage the rentals and all work associated in that business, would I as owner of the company be required to obtain a work permit? if employing agents to manage the properties. At present I have two properties and trying to decide which way to go. I would like to buy renovate and sell but because of the tax I would have to pay on selling before the 4 year period their is not a big profit margin after expenses. So it seems logical to rent them for while then sell.

So is their any advantages in setting up a company for this type of business? or just continue to buy and sell as an individual.