The foreign entrepreneurs, who are ready to set up a company in Turkey and don’t want to go through the whole company registration process, choose to purchase a shelf company. Buying a ready-made company is an alternative for foreign investors in many countries, but the laws in Turkey are a little bit different. A firm must have an economic activity in order to exist, so there are no companies with no activity for years.
Ready-made companies are generally chosen by investors who are in a hurry to start their businesses and who need a firm with longevity on the market. According to the Turkish Company Law, the company director should come to Turkey in order to modify the articles of association and then to prove to the local tax office that the firm is doing business.
In the recent years, many foreign investors have been interested in businesses in Turkey because of the favorable economic environment. Some of them want to buy a shelf company that means that they have to engage in the share transfer procedure for the already registered firm.
This procedure is simpler and it lasts less than the incorporation of a new company. A legal entity or a natural person can buy a ready-made company based on the certificate of registration for the company that will buy a Turkish firm or the passport of the person signing the agreement for the share transfer, at the office of a public notary.
After the new shareholder takes over the company, he can make any changes, after he notifies the Trade Register from Turkey. The new board of directors, company management and address will also be registered with the Trade Registry. The new shareholder can add other objects of activity and can make other changes too regarding the bank representatives or other activities of the firm.
Before purchasing the shelf company, the investor should be very careful about the history of that firm and problems in the past, such as debts or legal issues.
The main advantage of buying a ready-made company is that it can be used for signing an important contract or close an urgent deal. You can change the name of the shelf company.
Turkish shelf companies already have registered addresses and VAT numbers which makes them fully operational from the first day of the acquisition. This helps investors spare a lot of time otherwise spent with the tax authorities. The ready-made company is also suitable for those seeking to incorporate the history of a foreign company and thus helping them to improve relations with business partners and customer, and also to attract other clients or partners.
If you need assistance during the whole procedure of buying a shelf company or you want to set up a company in Turkey, you can contact our local representatives who will offer you more information and guide you through the procedure.
We invite you to watch a short video about buying a shelf company in Turkey: