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.
Types of liquidation procedures for 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:
- the company had a limited period of activity;
- the company could not realize its objectives within the desired timespan;
- the company lost two thirds of its share capital;
- the number of shareholders lowered below two;
- the Articles of Association provide for specific causes which can lead to dissolution.
The company liquidation process in Turkey
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.
Our team of accountants in Turkey can offer you payroll services, bookkeeping, audit services, preparation and submission of annual financial statements, human resources management, and more. It is much more recommended to use a specialized company instead of setting up such a department, due to the benefits such as the favorable costs. You can contact us by phone or online for all aspects that interest you.