Company Registration in Turkey
Types of Companies in Turkey
The types of companies that can be used for company formation in Turkey are:
• the joint-stock company, which is usually used by investors interested in setting up large operations in Turkey;
• the limited liability company, which can be private or public, however, the private type is usually employed by foreign enterprisers;
• the commandite company is a non-corporate business form and is the equivalent of the limited partnership in other countries;
• the collective company is also a non-corporate type of structure and can be registered by natural persons only;
• the cooperative company is one of the oldest and also one of the most popular types of companies in Turkey.
The limited liability company is the most popular form of business. At least one shareholder is required to form this type of company and a minimum share capital of 10,000 TRY will also have to be deposited during the initial phase of the incorporation process. The liability of the shareholders is limited to the amount of share capital invested in the company.
The joint stock company has a larger minimum share capital than the limited liability one – 50,000 TRY. This type of company has different rules regarding the company management process: it must have at least one shareholder and a mandatory board of directors. The liability of the members is limited to the amount of invested capital and the capital is divided into stocks which can be made public when the company is listed on the Stock Market. This type of company is more suitable for large businesses.
Other business options for investors include branches or subsidiaries in Turkey. Our company formation agents in Turkey can give you detailed information about each type of company.
The following types of entities can be created in Turkey, regardless any minimum share capital requirements:
1. the sole proprietorship, which is the simplest business form and, as such, requires no minimum share capital;
2. the private limited liability company which preferred by most foreign investors and requires a minimum share capital of 10,000 Turkish liras (TL);
3. the joint stock company which is usually employed for completing large projects, therefore will require a higher share capital amounting to 50,000 TL;
4. the commandite company which is similar to a partnership in European countries and which requires no minimum amount of money as a share capital;
5. the collective company which must be set up by natural persons who are not required to deposit a specific share capital.
It should be noted that the share capital must be provided by the future owners of the company. These are called shareholders or stockholders.
Six steps are required in order to incorporate a legal entity in Turkey.
After elaborating and signing the articles of association, this document must be notarized along with the signature declaration of the managers and the commercial books of the entity.
0.04% from the capital has to be deposited at the Competition Authority and the minimum share capital has to be deposited at a bank, which will issue a certificate of paid-in capital.
After that, the applicant must visit the Trade Registry Office and file the incorporation notice form, commitment letter, and Chamber registration statement.
The legal books of the company has to be notarized followed by the last step, the registration for the specific taxes at the Turkish Tax Office and Social Security Administration (performed by the Commercial Register but supervised by the company)
The necessary documents for registering a company in Turkey must be notarized and consists in 3 copies and the original of the articles of association, 2 copies of the signature documents, 2 copies of the identification documents of the firm managers, one copy of the passport for each foreign shareholder and 3 copies of a notification form of establishment.
Other requirements are the original receipt from the one of Turkish Banks, proving that the 0,04% from the capital were deposited the Competition Authority, the certificate of deposit of the minimum capital. For tax reasons, the company has to submit the certificate of registration, which will contain the tax number.
If all the documents are deposited at time and correctly, in 5 days a legal entity may start to perform commercial activities. When you need assistance for the incorporation procedure, you may contact me directly.
Our legal team can give you the best advising to elect your type of company and register in located that you want to start your business you can easily contact with us to conduct your company registration procedure.