The limited liability company (abbreviated LTD) is one of the most common business forms in Turkey. Investors who set up LTDs in Turkey typically run small or medium sized businesses and choose this corporate legal form for its simple registration procedure and easiness to operate. Before setting up a limited liability company in Turkey, the foreign entrepreneurs should know a few details about the registration procedure, the costs, and documents necessary to be submitted to the Turkish authorities.
Foreign investors who want to open a limited liability company in Turkey can choose between the private and the public limited liability company. There are several differences between them, however, the most important one resides in the size of the business: the private company is suitable for small and medium-sized businesses, while the public company, also known as ajoint stock company, can be used for large-scale operations. The other differences between them reside in the share capital requirements. If for a private LTD the share capital to be deposited is 10,000 TL, in the case of a joint stock company, one must deposit at least 50,000 TL. Also, the issued capital of a Turkish joint stock company must be 100,000 TL.
The most employed type of limited liability company in Turkey is the private one, as it addresses to foreign investors interested in doing business here. Our Turkish company formation specialists can help foreign investors set up an LTD here.
According to the Turkish Company Act, a limited liability company in Turkey can have a maximum number of 50 shareholders. However, at least one shareholder is sufficient to incorporate this kind of structure in Turkey.
Requirements for an LTD in Turkey
The Turkish limited liability company can be incorporated by at least one shareholder which can be a natural person or legal entity. The shareholder will be liable to the extent of the paid subscribed capital. This type of company can be 100% foreign owned. There are other important requirements for LTD registration in 2023:
An important requirement is that an LTD in Turkey has a minimum share capital of 10,000 TRY (approximately 3,300 EUR). The transfer of shares is regulated as per the instructions set forth in the company’s articles of association. This type of company, like the joint stock company, must comply with the accounting principles in Turkey and the annual financial filings.
A Turkish LTD can have one or more managers and one such individual must be appointed chairman of the board. According to the Turkish Commercial Code, the board members do not have to be present in person at the meetings: they can attend them via electronic means and resolutions can be approved using electronic signatures.
The new Turkish Commercial Code offers a business-friendly legislation related to company formation. The bureaucratic formalities have been simplified in order for the foreign investors to start doing business in this country.
If you onw a company, you can be interested in payroll in Turkey. This type of service can be provided by a specialist in the field. As for the procedures involved, you should know that it starts with the calculation of the taxes that must be paid to the state, by the employee and the employer. Companies in Turkey can benefit from outsourced services in this regard, and for more information, we advise you to contact our experts.
It is important to note that the minimum share capital of a limited liability company in Turkey is TL 10.000, and must be deposited in a single installment at the time of incorporation. In the case of a joint stock company, the minimum share capital is TL 50.000.
Registering an LTD in Turkey
A limited liability company in Turkey must be registered at the local Trade Register and, after this procedure is accomplished, the investor can begin his activity. The following documents are necessary to incorporate the company:
- letter of undertaking in which the objectives and activities of the company are explained;
- the articles of association which represent the incorporation documents of the LTD;
- proof that the share capital has been deposited (the statement issued by the bank);
- company establishment statement form which is issued by the Trade Register;
- identification documents for the company founders – identification papers or passports;
- the power of attorney for individuals appointed to represent the company in front of the Turkish authorities.
Normally, if all the documents are correct and accepted by the authorities, the incorporation of a limited liability company in Turkey can be done in approximately 5 days, and then the firm can commence the activities.
Our local consultants explain the characteristics of LTDs registered as mentioned above.
The limited liability company is used for all types of commercial activities. Turkey is known for industries like agriculture, real estate, and manufacturing and those who want to start businesses in any of these sectors can register their companies as LTDs. The only difference between them will reside in the licenses to be obtained for each activity. The LTD is also suitable for trading activities, no matter if related to the import or export of goods.
When it comes to the subsidiary company registered as an LTD in Turkey, the requirements of the Company Law must be respected. Under the Turkish legislation, the subsidiary is an independent company which is granted the status of a local company as long as it has a registered address and a management board in Turkey. At an international level, the LTD will be seen as an extension of a company. It should be noted that LTDs can be used by local and foreign companies seeking to open subsidiaries in Turkey.
Shelf companies are also known as ready-made companies which come in the form of LTDs most of the times. As registered companies, these will need to undergo several changes. The buyer can change the following:
- the company’s name;
- the registered address;
- the directors;
- the object of activity.
All these changes must be reflected by the Articles of Association and must be reported with the Turkish Companies Registrar. If you are interested in buying a shelf company in Turkey, our company registration agents can help you choose the right structure in accordance with your request. We can also help in making all the necessary changes in order to have a fully operational business.
Those who want to open offshore companies in Turkey must know that they can register them as limited liability companies, however, they will be required to complete their activities outside Turkey. Offshore companies can be used for trading and asset protection purposes. The holding company can also be registered as a Turkish LTD and can be used for managing and controlling the assets of other local or foreign companies. We can also help register a holding company in Turkey.
We invite you to watch a short video about opening a limited liability company in Turkey:
Assistance in registering an LTD in Turkey in 2023
Foreign entrepreneurs who want to open an LTD in Turkey can rely on our local consultants for specialized advice and assistance throughout the incorporation procedure. We can help with the preparation of all the documents needed to register the company. Moreover, by granting us a power of attorney we can complete the most important phases of the company registration procedure in 2023.
Registering an LTD in 2023 with our help will lead to a significantly swifter process, no matter the type of activities you want to set up. We can also assist with the registration of a joint stock company on behalf of investors looking to start larger businesses in Turkey. All our services are personalized and address both local and foreign businessmen looking to take advantage of one of the most important economies in the world. You can also rely on us for information on the taxes applied to LTD companies in Turkey.
If you want to open a company in Turkey, please contact our local consultants. Our representatives offer you assistance during the incorporation procedure of limited liability companies also in other European countries, such as Spain, Ukraine or Sweden.
Call us now at +90 532 351 66 77 to set up an appointment with Cagatay Altunsoy, one of our specialists in company formation in Istanbul, Turkey. Alternatively you can incorporate your company without traveling to Turkey.
As a client of CS Yonetim, you will benefit from:
- 24 hour response time guaranteed;
- cost- efficiency;
- dozens of articles and free information on the Turkish structures.