The limited liability company (abbreviated LTD) is one of the most common business forms in Turkey. Investors who set up a LTD in Turkey typically run small or medium sized businesses and choose this corporate legal form for its simple registration procedure and easiness to operate. Before setting up a limited liability company in Turkey, the foreign entrepreneurs should know a few details about the registration procedure, the costs and documents necessary to be submitted to the Turkish authorities. Our company registration agents in Turkey can provide you with specialized assistance and advice so that you can open a company quickly and start your business activity right away.
Requirements for a LTD in Turkey
The Turkish limited liability company can be incorporated by at least one shareholder which can be a natural person or legal entity. The shareholder will be liable to the extent of the paid subscribed capital. Thistype of company must have a maximum of fifty shareholders, but there are no restrictions regarding the nationality of the shareholders (it can be 100% foreign owned).
An important requirement is that a LTD in Turkey has a minimum share capital of 10,000 TRY (approximately 3,030 EUR). The transfer of shares is regulated as per the instructions set forth in the company’s articles of association. This type of company, like the joint stock company, must comply with the accounting principles in Turkey and the annual financial filings.
A Turkish LTD can have one or more managers and one such individual must be appointed chairman of the board. According to the Turkish Commercial Code, the board members do not have to be present in person at the meetings: they can attend them via electronic means and resolutions can be approved using electronic signatures.
The new Turkish Commercial Code offers a business-friendly legislation related to company formation. The bureaucratic formalities have been simplified in order for the foreign investors to start doing business in this country.
Registering a LTD in Turkey
A limited liability company in Turkey must be registered at the local Trade Register and, after this procedure is accomplished, the investor can begin his activity. The following documents are necessary to incorporate the company:
-letter of undertaking;
-articles of association;
-proof that the share capital has been deposited;
-company establishment statement form;
-identification documents for the company founders;
-documents for individuals appointed to represent the company;