The financial industry is one of the most important sectors of the economy in Turkey. Among its most prolific segments are investment funds, but also the insurance and reinsurance ones because the compulsory character the last sector has. Turkish citizens and residents are required to conclude various types of insurances, among which house, health and vehicle insurances.
The insurance and reinsurance sectors in Turkey are governed by the Insurance Contract Law and the Insurance Law. The last one was last amended in 2007. Our Turkish company formation agents can offer information on the legislation related to the insurance and reinsurance industry.
All types of companies no matter the industries they operate in must register with the Turkish Companies Registrar in accordance with the provisions of the Commercial Code. The new Company Act provides for special requirements related to insurance contracts.
The only type of structure acknowledged by the Insurance Law, a company operating in the insurance or reinsurance sector in Turkey must be registered as a joint stock company. Also, foreign insurance companies are allowed to offer their services in Turkey if they set up branch offices here and obtain an authorization from the relevant authorities.
After the insurance or reinsurance company is registered with the Trade Register, it must file an application with the Undersecretaries of Treasury within the Ministry for Finance in order to obtain its operating license.
Local insurance and reinsurance companies, as well as branches for foreign insurers, may offer life or non-life insurance services and the minimum share capital to be deposited no matter the services offered is 5 million Turkish liras. However, this amount can change on an annual basis.
After an insurance operator obtains its authorization, it must notify the Turkish Official Gazette and two local newspapers about its licensing.
For full information on how to establish a company in the insurance sector, please contact us. You can rely on our company registration consultants in Turkey for assistance with the formation of the company.