Foreign investors have several options when deciding to open a company in Turkey. The partnership, the limited liability company and the joint stock company are some of these options. All types of business forms are regulated by the Turkish Commercial Law.
The Turkish joint stock company is also known as a public limited liability company because the liability of the shareholders is limited to the amount they contributed with to the capital. Our company registration agents in Turkey can assist foreign investors interested in opening companies in this country.
Foreign investors who want to establish a joint stock company in Turkey must fulfill several requirements. The company must have a minimum number of one shareholder who can be a natural person or a corporate entity. The minimum amount imposed by the law to set up a Turkish joint stock corporation is 50,000 TRY (approximately 30,000 euros) and at least 25% of the amount must be submitted prior to the company registration.
This type of company must have a board of directors which can be made up of one or more persons or companies. Shareholders are not required to be part of the board.
The Turkish joint stock company which has more than 250 shareholders and which trade on the capital markets will also be subject to the regulations imposed by the Capital Market Board. This type of entity can also be used to set up investment funds in Turkey.
The first step to open a joint stock company in Turkey is to draft the Articles of Association which must contain information on the company’s members and its activities. Then the representative must reserve a company name. The statutory documents and the shareholders and directors’ passports or other identification papers must be filed with the Turkish Companies Registry. Depending on the company’s activities certain licenses must also be obtained.
Once the Turkish joint stock company is registered, it must hold annual general meetings within 3 months from the end of the financial year.
For assistance in setting up a joint stock company, please contact our Turkish company formation representatives. We can also assist with the preparation of the company’s statutory documents.