Create a Collective Company in Turkey

One of the types of companies available for registration in Turkey is the collective company. This type of company is equivalent to a general partnership in other countries, which is why it is more appropriate for smaller businesses. Nevertheless, there are many investors interested in opening collective companies in Turkey.

Our Turkish company formation agents can offer more information on the collective company.

Requirements to register a collective company in Turkey

The collective company can be entered into the same category with the commandite company in Turkey. Unlike the commandite company, the collective one implies partners who will be equally liable for the business’ obligations towards creditors. An important aspect to be considered when opening a Turkish collective company is that may only be formed by natural persons. However, it may have a management board made up a natural or legal persons.

The Commercial Code in Turkey does not impose a minimum share capital when opening a collective company. However, the law requires the name of the company to be made up of at least one of the names of the partners and to contain an indication related to the type of company.

Steps to open a Turkish collective company

Articles 211 to 213 in the Commercial Law in Turkey provide for the establishment of collective companies in this country. The first step to open a collective company in Turkey is to draft the articles of association which must contain the following information:

• -          the type of company;
• -          the name and registered address of the company;
• -          the business activity it will carry out;
• -          the share capital deposited by each shareholder;
• -          information on the representatives of the company.

The incorporation documents must be notarized by a public notary in Turkey.

The steps to open a collective company in Turkey are:

• -          preparation of the incorporation documents;
• -          notarization of the articles of association;
• -          depositing at least 25% of the share capital with the bank;
• -          registration for tax purposes.

All the documents must be filed with the Turkish Trade Register. Also, 0.04% of the share capital must be deposited with the Competition Authority.

Interested in a team of accountants in Turkey? We provide you with a series of services for your company in this country. Payroll, audits, annual financial statements, and bookkeeping are among the necessary accounting services. But those interested can also opt for personalized financial consultancy services and complete financial reports. So, contact us today to discover the necessary services for the company you own.

If you want to open a collective company and need assistance, please contact our company registration consultants in Turkey.