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You can find adequate detail regarding the process, conditions, and procedures involved in establishing a company in Turkey for ownership, investment, or commerce.
Due to Turkey’s unique trade position between Asia, Europe, and the Middle East, Turkey has drawn international investment for many years. Many public and international corporations have established operations in and around Turkey’s main cities, demonstrating the country’s worldwide relevance. Istanbul is home to the great bulk of these huge companies.
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Establishing a Company in Turkey
The Turkish Foreign Direct Investment (FDI) Law is built on the idea of fair opportunities, allowing international investors to benefit from the same rights and obligations as domestic investors.
The same rules apply to foreigners establishing a company or a business and transferring shares, as they do to local investors. International investors may form any of the companies listed in the Turkish Commercial Code (TCC), which establishes a corporate governance framework that meets international standards, promotes private equity and public offering operations, ensures operational transparency, and aligns the Turkish business environment with European regulations and the European accession process.
Turkey has undertaken measures to make it easier to do business to improve the investment climate by removing red tape in establishing a company and reducing expenses and processes.
What Are The Company Types Under TCC and Their Alternative Forms?
Under the TCC, firms may be formed in two ways: corporate and non-corporate.
What Are The Corporate Forms?
- Joint Stock Company (JSC),
- Limited Liability Company (LLC).
Despite the fact that certain financial requirements (such as minimum capital) and divisions change, the processes for forming a JSC or an LLC are the same.
What Are The Non-Corporate Forms?
- General Partnership,
- Limited Partnership,
- Partnership Limited by Shares.
Even though these five various forms of corporations may be formed, the JSC and LLC are the most frequent in both the world economy and Turkey.
How to Establish a Company in Turkey?
The registration procedure takes no more than a week after determining the form of the company. Before establishing a company in Turkey, a foreign investor must have a particular amount of money; for example, a limited liability company must have a minimum share capital of ₺10.000, while a joint-stock company must have a minimum deposit of ₺50.000.
Our English-speaking Turkish lawyers can help you with all of the processes involved in the incorporation process and submit the paperwork to the relevant Turkish authorities.
Deciding The Location of The Company’s Headquarters is The First Step
According to Turkish law, a firm must have a headquarters in Turkey to be legally established in the nation. There are two options for establishing a company in Turkey, which are a virtual or physical headquarters:
The first option is to choose a site already owned by the corporation. Aside from that, there is also the option of leasing one. Renting a property will cost you some money per month, plus extra costs such as commissions and other fees.
The second alternative is to get a virtual office, a fully legal address but not a physical location for your company.
The Company’s Capital Funds is The Second Item on The List
The primary aspect of the firm’s capital is to act according to Turkish legislation. The minimum capital required to establish a company in Turkey is ₺10.000 for an LLC and ₺50.000 for a JSC.
Because Turkish legislation deals with companies based on their capital value, this quantity of funds will not provide you with any independence. As a result, if your company’s capital is set at ₺100,000, you will be able to:
- Obtain a work permit in Turkey (or a residence visa) easier.
- Have the opportunity to join businesses such as; TURSAB, MUSIAD, and others.
- Being able to do business or export and import commodities conveniently.
The investment does not have to be put in the bank during the establishment procedure; rather, it must be deposited before filing for a work permit or within 24 months of the foundation date.
What Are The Other Main Steps For Establishing a Company in Turkey?
- Preparing The Business: Choosing the business structure.
- Conditions Watchout For: Preparing the necessary documentation.
- Mandatory Requirements: Applying for licenses and permits required.
- Taxes: Registering for tax purposes.
- Getting Ready For Business: Obtaining the company seal.
What is The Procedure For Registering a New Company in Turkey?
Foreign entrepreneurs who wish to establish a company in Turkey must complete several processes before getting started. These stages are as follows:
- Deciding on the type of company they chose to establish and having the necessary paperwork written and notarised according to the Companies Act.
- Establish a company bank account and deposit the legal minimum share capital.
- Designate the company’s directors or management in accordance with the law.
- File the Articles of Incorporation and the names and addresses of the shareholders and management to the Trade Register.
- Get TAX and VAT numbers and register with the tax office for social security reasons.
MGC Legal company establishment services are here to assist you with legal matters. Our English-speaking Turkish attorneys will assist you during the whole process.
What Are The Documents Required to Establish a Company in Turkey?
Preparing the documentation required for the Trade Registrar is one of the most crucial procedures in establishing a company in Turkey.
The Articles of Association is the most important document to prepare and notarise. It must include all information about the shareholders, including their identities, addresses, contributions to the company’s share capital, and the number of shares they possess company established.
The Articles of Association must also include information about the company’s management, such as their names, how they are elected and may be revoked, and their obligations and responsibilities.
The company’s trade name, location in Turkey, and business summary must all be properly stated in the same documentation. Other sections in the Articles of Association might relate to adjustments that can be made to the firm and dispute resolution processes if any difficulties arise amongst the shareholders.
The Articles of Association must be written in line with the Commercial Code’s regulations. Our legal firm in Turkey can assist you with producing these paperwork if you are a foreign investor looking to establish a company in Turkey.
The crucial point is that a simple application form must be submitted with the Trade Register when forming a sole proprietorship. The partnership deed is at the heart of forming partnerships, known in Turkey as commandite companies.
Who Are The Shareholders in a Company Established in Turkey?
The shareholders are the company’s founders, or, to put it another way, its owners. These might be individuals or businesses, and they have various rights and responsibilities inside the firm.
A firm’s number of shares is one in both private and public corporations. These may be Turkish citizens or residents. Nevertheless, while establishing a company in Turkey, foreigners can also function as sole shareholders.
One of the shareholders’ primary obligations is to contribute to the company’s share capital. They will get more or fewer rights in the firm depending on their contributions.
The largest benefit to shareholders is that, in the case of limited liability companies, their responsibility for the business’s debts and other obligations is limited to the amount of money they invested in the company. The position of shareholders is filled by the partners or members in the case of partnerships.
What Are MGC Legal Company Establishment Services?
MGC Legal is very high quality and well-known law firm serving in Turkey for many years. MGC legal especially focuses on the legal problems experienced by foreigners in Turkey, including establishing a company.
Our staff of English-speaking lawyers are ready to assist you throughout this process and will answer any questions you may have.
Frequently Asked Questions About Establishing a Company in Turkey
We will try to answer some of your questions in this section.
What is The Price of Establishing a Company in Turkey?
The cost of establishing a company in Turkey is low. Still, the company owner must include the costs of company registration, notary fees, and the commission of the Turkish law firm managing the process (if one is appointed).
Should You Use a Company Formation Agent?
An increasing number of company formation agents advertise their services in local newspapers and can be found in most urban centres. Many expatriates choose to go this way since locating a competent agent saves time and effort.
If you’re thinking about hiring one, do some research beforehand and see what other expatriate businesses they’ve helped start. Some of these businesses are considerably superior to others, as with everything.
How Long Does it Take to Establish a Company in Turkey?
Establishing a company takes roughly three weeks. In the event of a branch office, the process takes longer. Contact our team of attorneys in Turkey if you want additional advice on the processes followed by Turkish authorities while establishing a company in Turkey. We can assist you with our customised business registration services.
Where Can You Seek Information on Establishing a Company in Turkey?
Many people’s first point of contact is their attorney. Make sure you get a reputable legal counsel familiar with Turkish company regulations and has successfully assisted foreigners in establishing successful enterprises in Turkey. Furthermore, all Turkish embassies have current and accurate information on the matter.
What Kinds of Companies Can Foreigners establish in Turkey?
Many foreigners establish enterprises related to tourism or cater to other expatriates’ requirements. Clubs & bars, restaurants & cafes, hotels, short term or long-term rental firms, estate agents, stores, and maintenance organisations seem to be the standard. They are typically simple to organise and manage for expatriates.
Expats are not permitted to operate some enterprises in Turkey without specific permission from The Ministry of Commerce and Industry. Banks, factoring firms, private financial institutions, foreign currency exchange offices, enterprises subject to the Capital Markets Law, public warehousing, and free-trade zone operators are among them. If you’re unsure, consult your legal counsel and the appropriate authorities ahead of time.
Here is a comprehensive official guide about starting a company in Turkey published by the Turkish government.
Other Helpful Links:
- Investing in Turkey,
- Conversion of Limited Liability Company into Joint-Stock Company Under Turkish Commercial Code,
- Amendment of The Articles of Association in Joint-Stock Companies Under Turkish Commercial Code,
- Information Note on The Pending Amendment Proposal in Banking Law,
- Evaluation of The Communiqué on Crowdfunding.