Establishing a Company in Turkey | Everything You Need to Know
Launching a company in Turkey has become much sought after for several reasons. First, Turkey today is home to many major infrastructure projects implemented by international investors who want to access this attractive market. Moreover, Turkey’s legislative and natural environment makes it an ideal place for new businesses to appeal to foreign investors’ capital. As a result, Turkey has become a fertile environment for real estate investment and new businesses. This blog will help you understand all the types of companies, steps, and procedures of establishing a new company in Turkey.
What are the types of companies in Turkey?
Before talking about the procedures for establishing companies in Turkey, it is essential to mention their types and explain each of them, as detailed by the Ministry of Commerce in 5 sections:
- the personal company.
A personal company is one of the easiest and most preferred types of companies to establish. The reason is because of the accessible procedures when opening and even closing it, and the name and surname of the founder are usually written in the title “company name.”
- The joint or cooperative company
A commercial company is like any other company but is limited to specific commercial projects. The number of shareholders in it is at least seven, and its board of directors consists of 3 Turkish citizens as a minimum.
Usually, each partner’s share is at least one thousand and at most 5,000, provided that the value of each share is not less than 100 Turkish liras.
- The joint stock company
This type of company means that the shares are divided into shares, each share must have a minimum value of 50 thousand Turkish liras, and the number of shareholders should be at least five legal persons.
- The Unlimited Company
This type of company is classified within the huge sectors we will not discuss now and is not accessible in Turkey. Examples of these companies are banks, insurance companies, holding companies, and asset management companies.
- The Limited Company
This type is best suited for most SME investors who aspire to establish a business in Turkey. In addition, the limited company is well suited to many investors in terms of ease of time on one side and the incentives offered by the Turkish government on the other.
What are the documents required for establishing companies in Turkey?
The papers required for incorporation are usually easy to obtain within one day! The lack of complexity in papers and documents is one of the facilities provided by the Turkish government to attract foreign capital. What are these papers?
- A translated and certified copy of the passport from the notary
- A tax number from one of the branches of the Tax Directorate in Turkey.
- Obtaining security approval from the General Security headquarters.
- Four recent personal photos.
What are the procedures for establishing a company in Turkey?
- Prepare the company agreement and document the founders’ signature.
The first and most crucial step is the company’s internal system contract prepared by a licensed accountant. Turkish law mandates all companies to have a Certified Public Accountant to represent the company by the Ministry of Commerce.
- Determine the headquarters of the company.
One of the main conditions for establishing a company in Turkey is determining its headquarters so there is a place for the company to conduct its business and carry out its activities. A committee from the Ministry of Commerce comes to inspect the headquarters commensurate with the company’s activities. At the same time, the law allows a virtual company address to be registered with a lawyer or other business agents. Thus, launching companies quickly while the headquarters are completed is an ideal solution.
- The capital
It is necessary to deposit at least 25% of the company’s capital to start the incorporation procedures of the certified accountant. Here we note that everyone who wishes to obtain a work permit in Turkey through the establishment of the company must deposit a minimum of 100 thousand Turkish liras.
- Apply for incorporation and complete the documents.
After completing the papers and determining the company’s headquarters, the certified accountant submits the documents electronically through a platform launched by the Ministry of Labor. This platform is called the Central Registry System, through which companies are established, procedures are followed up, and everything is related to companies. Finally, the company’s official papers are issued by the company’s Certified accountant through the Ministry of Commerce, and the documents are as follows:
- İmza Sirküleri – Electronic signature
- Vergi Levhası – Signboard Tax
- Publication in Official Gazette
- Ticari Sicil – Commercial Registry
- Faaliyet Belgesi – Event Document
What are the advantages of establishing a company in Turkey?
- Getting support from the Turkish government if the company markets Turkish products and goods through tax exemption.
- Facilitating export operations from Turkey.
- Foreign companies in Turkey are launching today in a country whose economy is ranked 19th in the world.
- The possibility for the owner of the company to obtain Turkish citizenship by getting a work permit, provided that it is renewed for five consecutive years.
- The establishment of work also requires the issuance of health and social insurance that guarantees the founder and his family a healthy life and a secure future.
- The company’s official possesses the merchant’s document. This document guarantees him to attend international exhibitions in Turkey without any prior reservation with other privileges in some hotels and commercial centers.
This blog covered the crucial points of establishing a company in Turkey. Learn more about this process by contacting us for assistance. In addition, our team is always ready to answer all your legal questions related to investing in Turkey.
Greater Turkey is a top-notch consultancy firm with years of experience in real estate, investments, and legal advice. We guarantee you a safe and thriving investment.
Edited by: Greater-Turkey ©
Source: Turkish Ministry of Trade
