Turkey is one of the countries attracting foreign investments worth millions of euro on an annual basis. However, there are also investors wanting to withdraw from the Turkish market, or companies which for one reason or another find themselves indebted and in order to pay off those debts are required to undergo liquidation. In order to simplify the company liquidation procedure for Turkish companies, the government recently amended the Commercial Code. The simplified procedure is now available for inactive joint stock and limited liability companies in Turkey.
Company liquidation in Turkey can be:
Voluntary company liquidation is established by the shareholders of the Turkish company in a General Assembly and by amending the company’s Articles of Association. Compulsory liquidation is usually requested by the creditors and is ordered by a court of law.
No matter the type of procedure employed, company liquidation is preceded by the dissolution of the business.
A company can be wound up under one of the following reasons:
Our company formation agents in Turkey can offer more information about the provisions of the Company Act related to company liquidation.
No matter the type of liquidation, the shareholders or the court must appoint a liquidator or an official receiver to carry out the procedure. The liquidator must assess the company’s assets and debts and must make sure the company is able to pay those debts. The liquidator will compile an inventory and a balance sheet and inform the creditors and the Turkish Trade Register about the liquidation of the company.
The company’s name must also be amended during the liquidation process by adding the words ‘under liquidation’. After the process in completed, records on the company’s books must be kept for at least 10 years.
For assistance with the company liquidation procedure, do not hesitate to contact our company registration representatives in Turkey.