Foreign and local investors are not invited to open just companies in Turkey, but also other types of entities, such as cooperatives and even foundations, also referred to as non-profit organizations or associations. Speaking of foundations, foreign ones are also allowed to open representative or branch offices in Turkey by registering with them with the Department of Associations within the Ministry of Interior.
When it comes to the opening of a foundation in Turkey, the main law to comply with is the Foundations Law which was enabled in 2008. Our company formation agents in Turkey can offer more information on this law.
Local and foreign investors can open two types of foundations in Turkey:
The main difference between the two types of entities is that state foundations are considered governmental entities, while private NGOs can be set up by locals or foreign citizens living in Turkey. Private individuals can open Turkish foundations which are based on the assets held by the settlors and associations which are based on the members setting them up.
Our company registration consultants in Turkey can offer detailed information on these differences.
No matter the type of foundation one decides to establish in Turkey, the first step is to make a clear distinction between the settlor or settlors, the trustee and the beneficiaries. Once these elements are in place, a minimum capital of 200,000 USD must be deposited with a Turkish bank. The maximum amount to be deposited in order to open a foundation in Turkey is 400,000 USD. Following that, a notarial agreement through which the foundation is established will be drafted. The foundation must be registered with the Department of Associations.
Turkish foundations must have experienced financial managers and are also required to keep their assets in cash in state-owned banks.
Foundations in Turkey benefit from various tax deductions and other fiscal facilities. Our Turkish company formation advisors can offer information on these tax facilities. Please contact us if you want to open a foundation in Turkey.