CompanyFormationTurkey.com is a specialized company registration agent in Turkey, serving clients from any part of the world looking to expand to the important Turkish market. We have relevant experience throughout all the stages of the incorporation in Turkey and a team formed of Turkish lawyers and accountants.
TYPES OF BUSINESS ENTITIES IN TURKEY
Forming the most popular form of Turkish business
. If the entrepreneurs want to settle a small or medium business and have available at least 10000 TL then it can form a Limited Liability Company in Turkey.
At least ¼ of this amount must be deposited at the registration of the Limited Liability Company. At least one shareholder is requested to form this structure and their liability is limited by the contribution to the capital.
For large businesses the Turkish Joint Stock Company structure is more advisable. In this case at least five shareholders are requested to form it with a minimum share capital of 50000 TL. The liability of its members is also limited by the contribution to the capital. This capital is divided into stocks and the difference between the limited liability companies and the joint stock companies is that the stock of this form of business can be transferred to the public by registration at the Stock Market. This way the capital can be increased.
Other forms of business. At least two individuals or corporate bodies can form a Turkish General Partnership where the liability of the members is equally divided between them. As an advantage, there is no minimum share capital requested at registration.
A Limited Partnership in Turkey is also formed by two or more corporate bodies or individuals but unlike the general partnerships, is formed by limited and general partners. The general partner is liable for the entity’s debs and can make all the major managerial decisions while the limited partner cannot take any decisions related to the entity’s activities and have a limited liability by the contribution to the capital.
INCORPORATION PROCEDURE IN TURKEY
The process of company incorporation in Turkey
starts with drafting and notarizing the commercial books, the articles of association, signature declarations of the managers, copies of each manager's identity card.
A bank account must be opened and the share capital of the newly formed Turkish company must be deposit in it. After receiving the certificate of deposit, the founders must also deposit 1/4 of the company's capital at the central or public bank to the account of Competition Authority. The Turkish institution issues a receipt certifying that necessary in the process of company registration.
Actual registration. After taking the above steps and paying a registration fee, the founders must also deposit specific documents at the Commercial Registry Office in Turkey such as three copies of the incorporation application, three copies of the notarized articles of association, chamber registration statement, two copies of the representative’s ID, the bank deposit receipt, and two copies of the representatives’ specimen signatures.
A registration certificate is issued by the judges of the Turkish Commercial Registry
as a result of the actions. The Tax Office and the District Employment Office are also announced regarding the incorporation of the new company .The national Turkish Gazette will publish an announcement regarding the incorporation.
In the same day the company receives the certificate of registration the founders must visit a public notary and notarize the legal books. The notary public will also announce the State Tax Authority of the legalization of the company books.
The process of company incorporation in Turkey is one of the shortest from Europe, taking only 6 days if all the documents are properly submitted and in time.
ECONOMY OVERVIEW IN TURKEY
Turkey has a dynamic economy, which attracts numerous foreign investors. Tourism provides an important income for the country’s economy. Other reasons for which entrepreneurs from abroad are attracted to Turkey are the location, the developed infrastructure and the well-trained workforce.
Turkey is considered to be among the most attractive destinations for foreign investments from the perspective of the domestic market and competitive workforce. Foreign investors are however continuously encouraged to come to Turkey through incentives and equal treatment as the local businesses.