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WHAT YOU NEED TO KNOW ABOUT STARTING A MUSIC PRODUCTION AND DISTRIBUTION COMPANY

Financial Security or Low Cost? The Best Option for Your Music Production Company

If you are considering establishing a music production company, the type of company you will choose is an important decision. Each type of company has its advantages and disadvantages. You should choose the one that best suits your business model and financial situation among options such as sole proprietorship, limited company and joint stock company.

A sole proprietorship is preferred for small-scale music production companies due to its low setup costs and simple procedures. Low setup costs and the ability to complete transactions quickly are among the advantages of a sole proprietorship. However, it should not be forgotten that in a sole proprietorship, the company owner is personally responsible for all debts. Financial risks that may arise in this area can directly affect your personal assets.

The most preferred type of company for establishing a music production company in Turkey is the limited company. The setup costs and procedures are a bit more complicated than a sole proprietorship, but it is more advantageous in terms of financial security. In addition to providing a prestigious image, limited companies also provide an advantage with a fixed corporate tax rate (25%). Therefore, if you anticipate that your net profit will be over 70,000 TL, it would be more logical to establish a limited company. As the profit share increases in sole proprietorships, the income tax rate you must pay may increase up to 40%.

In cases requiring large-scale projects and a broad investor base, it may be more appropriate to establish a joint-stock company. Joint-stock companies can increase capital by issuing shares, which provides the necessary financial strength for large projects. However, establishment costs are higher than other types of companies.

Figures You Will Pay When Establishing a Music Production and Distribution Company

A payment of approximately 1,000 - 2,000 TL may be required for the establishment of a sole proprietorship, including notary expenses, trade registry record, tax plate and other small expenses. With the help of Ifastürk, you can establish your company without paying the accounting fee when establishing your sole proprietorship. In addition to the above, you can expect a cost of approximately 3,000 - 5,000 TL, including the capital blockage and other expenses in the establishment of a limited company.

If you are considering establishing a joint stock company, you may encounter an estimated start-up cost of around 11,000 TL for 2024. When establishing joint stock companies, at least a quarter of the capital must be blocked by the bank. After the registration procedures are completed, this capital can be withdrawn from the bank on the same day; therefore, it is not included in the start-up cost.

Documents Required for Establishing a Music Production Company

Although the documents required to establish a music production company vary depending on the type of company selected, they basically contain the same documents. These documents can be listed as follows:

• Copy of the founder’s ID or passport
• Current residence document of the founder
• Notarized signature declaration
• Form to be filled out to obtain a tax certificate
• If your workplace is rented, notarized lease contract; if it is your own property, a copy of the title deed
• For limited and joint stock companies, a registration declaration to the chamber of commerce and a capital blocking letter

Permits Required to Start a Music Production Company

The permits and licenses required to start a music production company can vary depending on the scope and scope of your business. Below are some of the permits and licenses that music production companies may need in general:

• After establishing your company, you must apply to the trade registry office to register your company. The registration process is mandatory for your company to officially start operating.
• After your company's registration process is completed, it is mandatory to apply to the tax office and get a tax plate. The tax plate shows that your business is legally a taxpayer.
• In order to protect the copyrights of the musical works you produce, you must apply to the General Directorate of Copyrights and obtain the necessary licenses. These licenses are important to prevent unauthorized use of your works.
• You must start your business by obtaining a business and work license from the municipality of the place where your company will operate.

How to Start a Music Production Company?

The process of starting a music production company requires meticulous planning and extensive preparation. Your first step should be to create a detailed and strategic business plan. This plan is a roadmap that will shape the future of your company and should include the following critical elements: vision and mission, goals, target audience analysis, marketing strategies, financial projections, operational processes, human resources planning, and risk factors.

Your business plan not only guides you through the process of establishing your company, but also creates a valuable document for potential investors and business partners. It should include trends in the music industry, market dynamics, and competitive analysis, so you can position your company to take advantage of opportunities in the sector.

After planning, it is important to determine the legal structure of your company. This decision will affect financial responsibilities, tax liabilities, and management structure. Consider the advantages and disadvantages of different types, such as a limited liability company, a corporation, or a sole proprietorship.

Once you have determined your legal structure, proceed to the application process for the necessary permits and documents. Contact relevant authorities for copyrights, licenses, tax records and other legal requirements. Also, plan the technological infrastructure, studio equipment and necessary software.

  Establish Your Music Production Company Quickly and Easily with Ifasturk

Don't be concerned about the complexity of the process of establishing a music production company and the multitude of legal requirements. Ifasturk facilitates and accelerates all these processes for you. Our expert team guides you through all the steps from company establishment to tax and accounting procedures.

By working with Ifasturk, you can overcome the bureaucratic obstacles you may encounter while establishing your music production company and focus your time and energy on your core business. Moreover, with our sector-specific consultancy services, you will always be informed about the most up-to-date legal regulations and opportunities in the music industry.

Contact Ifasturk now to establish your dream music production company. Get one step closer to making your mark in the music world with our professional support. Ifasturk is with you as you transform your passion for music into your business!

Mesut SENEL | Ifasturk CEO

Certified Public Accountant