What Are the Procedures for Establishing Companies in Turkey?
Establishing companies in Turkey has become much sought after for several reasons, including that Turkey today is a place for many major infrastructure projects. Secondly, Turkey’s legislative and even natural environment is attractive to the capital of international and foreign investors. Thirdly, Turkey has become a fertile environment for real estate investment and the launch of new businesses.
You can find the most important information about the establishment of companies in Turkey, where we start from identifying the types of companies, and then move to identifying the required papers, and then go through the procedures for establishing the company until we reach the features that follow its establishment.
What are the types of companies in Turkey?
Before talking about the procedures for establishing companies in Turkey, it is necessary to mention their types and explain them in a simple way, as detailed by the Ministry of Commerce in 5 sections:
First – the personal company
The personal company is one of the easiest and most preferred types of companies to establish, and the reason is due to the easy procedures when opening and even closing it, and the name and surname of the founder is usually written in the title “company name”.
Second – The joint or cooperative company
A commercial company like any other company, but it is limited to certain commercial projects and the number of shareholders in it is at least seven, and its board of directors consists of 3 people who are Turkish citizens as a minimum.
Usually, the share of each partner is at least one thousand shares and at most 5,000 shares, provided that the value of each share is not less than 100 Turkish liras.
Third – The joint stock company
This type of company means that the shares are divided into shares, and each share must have a minimum value of 50 thousand Turkish liras, and the number of shareholders should not be less than 5 legal persons.
Fourth – The Unlimited Company
This type of company is classified within the huge sectors that we will not discuss now, and licensing it is not easy in Turkey. Examples of these companies are banks, insurance companies, holding companies, asset management companies.
Fifth – The Limited Company
This type is best suited for most SME investors who aspire to establish business in Turkey. The limited company is well suited to many investors in terms of ease of terms 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 easy to obtain within in one day usually! 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 a security approval from the General Security headquarters.
- 4 recent personal photos.
What are the procedures for establishing a company in Turkey?
First – Preparing the company agreement and documenting the founders’ signature
The beginning and the most important of them is the company’s internal system contract, which is prepared by the chartered accountant, and here we note that Turkish law obligates all companies to have a certified public accountant to represent the company before the Ministry of Commerce.
Second – Determining the headquarters of the company
It is also one of the main conditions for establishing companies in Turkey, so there must be a place for the company to conduct its business and carry out its activities, and for your information, there is a committee from the Ministry of Commerce that comes to inspect the headquarters and commensurate with the company’s activities.
While the law allows for a virtual company address that can be registered with a lawyer or other business agent, it is a good solution to launch companies quickly while the headquarters are completed.
Third – the capital
It is necessary to deposit at least 25% of the company’s capital to start the incorporation procedures by the certified accountant, and 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.
Fourth – Submitting the application for incorporation and completing the documents
After completing the papers and determining the company’s headquarters, the chartered accountant submits the papers electronically through a platform launched by the Ministry of Labor. This platform is called the Central Registry System, through which companies are established and procedures are followed up and everything related to companies.
As for the company’s official papers, they are issued by the company’s-chartered accountant through the Ministry of Commerce, and they are:
- İmza Sirküleri – Electronic signature
- Vergi Levhası – Tax Plate
- Publication in Official Gazette
- Ticari Sicil – Commercial Registry
- Event Document – Faaliyet Belgesi
What are the advantages of establishing a company in Turkey?
- Getting support from the Turkish government in case the company is marketing 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 obtaining a work permit, provided that it is renewed for 5 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 possessing 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.
These were the most important basic points about establishing companies in Turkey, and to learn more about this topic or know the costs of establishing them, all you have to do is contact us to help you in all your legal procedures related to investing in Turkey.
Greater Turkey is proud to offer you its consultancy services in the field of real estate investment and legal advice; Long experience that guarantee you a safe and successful investment, we put it in your hands with ease and reliability.
Edited by: Greater-Turkey ©
Source: Turkish Ministry of Trade