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HOW TO ESTABLISH A COMPANY IN TURKEY

It is necessary to establish a company in Turkey to do a commercial business, offer a product or service, or earn a sustainable income. It is necessary for establishing a company, benefiting from tax deductions and many official transactions. Company formation provides many advantages. The foundation of many of the holdings was laid with a simple company formation. Processes such as tracking and fulfilling the necessary transactions for the company bring innovations to enterprises or individuals with competence.

If you need to start a company for a business or venture, and you don’t know where to start, our article will guide you. How to establish a company in Turkey? What are the Turkey company establishment processes? What are the types of companies? You can find the answers to these questions and more below.

Company EstablIshment In Turkey

Company establishment procedures in Turkey vary according to company types. For this reason, in order to establish a company in Turkey, first of all, it is necessary to decide on the type of company. A sole proprietorship may suffice for a small business or business; however, for large-scale businesses, and startups that want to compete in global markets, a more comprehensive company such as a joint stock company or limited company should be established. There are some legal and official procedures for establishing a company. It is necessary to find the answer to the question of how to establish a company in Turkey for procedures such as structuring tax processes and integrating them into payment systems.

Types of Company In Turkey

Before the question of how to establish a company in Turkey, it is necessary to have information about the types of companies in Turkey. Company characteristics, establishing processes and other issues regarding company types in Turkey are regulated in the Turkish Commercial Code No. 6102. Companies according to the law; It is divided into “capital companies” and “trading companies”. There are also “liaison offices” established with special permission, which are included in the Foreign Direct Investment Law.

  • Joint stock company
  • Limited company
  • Collective company
  • Limited partnership
  • Cooperative

The most accurate choice will be determined by the professional legal service you will receive.

What Is a JoInt Stock Company?

An incorporated company; is a type of company with a certain capital and divided into shares. These companies are only liable for their debts with their assets. Partners or shareholders of joint stock companies are liable to the company in proportion to the capital shares they have committed. Partners are not responsible for public debts. Responsibilities arising from public debts belong to the members of the board of directors. Joint stock companies can do any work that is not prohibited in the contract. Joint stock company partners can be natural or legal persons.

There are two different bodies in charge and authorized in joint stock companies: the general assembly and the board of directors. All shareholders are represented in the general assembly, and it is the exclusively authorized body to take important decisions regarding the company. The board of directors is the body that manages and represents the company. Joint stock company board members do not have to be Turkish citizens or residents of Turkey. Joint stock company shares can be offered to the public on the stock exchange.

EstablIsh a JoInt Stock Company IN TURKEY

The basic information to be considered during the establishment of a joint stock company is as follows;

  • Joint stock company establishment conditions are the same for domestic and foreign investors
  • The minimum capital for a joint stock company is at least 50.000 TL unless there is a contrary provision.
  • At least 25 per cent of the committed cash shares in joint stock companies must be deposited into the bank account opened in the company’s name before the company registration.
  • Joint stock companies must have at least 1 partner. There is no upper limit on the number of joint stock company partners.
  • If the number of joint stock company partners is more than 250, the company is considered within the scope of the Capital Markets Law

THINGS to Know About Company EstablIshment IN Turkey

  • Company establishment in Turkey can be completed within 1 hour after the required documents are submitted to the relevant institution.
  • There is no fee payment among the necessary procedures for establishing a company in Turkey; ie company establishment is exempt from fees.
  • Local and foreign investors are subject to the same rights, obligations and conditions for establishing a company in Turkey.
  • Companies operating abroad may establish a liaison office in Turkey; however, liaison offices cannot carry out commercial activities and issue invoices.
  • For the establishment of a company in Turkey, the signatures of the persons authorized to represent the company must be approved by the relevant institution. This transaction should be made to the Trade Registry Office.
  • In order to establish a company in Turkey, 0.04 per cent of the company’s capital must be invested as a “Competition Authority Share”. This transaction can be paid to the Trade Registry Office.
  • Some companies can be established with the permission of the Ministry of Commerce. Some of these companies are banks, financial companies, insurance companies, asset management companies, holdings, foreign exchange companies, warehousing companies, specialized stock exchange companies, audit companies, and free zone companies.
  • The most common types of companies in Turkey; are joint stock companies. 82% of companies in Turkey are limited liability companies. 13% of companies in Turkey are joint stock companies. Cooperatives follow these companies with a rate of 4 per cent

The ratio of a sole proprietorship, which includes collective and limited partnership companies, is approximately 1 per cent

Please contact our legal team to establish a company in Turkey

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