Establishing a company in Turkey allows the foreign investor to benefit from great commercial facilities. The Turkish government has enacted many laws that are in the interest of investors.
Types of companies in Turkey
There are four types of companies in Turkey, which are:
First: Joint stock companies
In this type of company, the company’s capital is divided into shares distributed among the shareholders/partners. The liability of the shareholders is limited to the percentage of their shares from the capital of the company subscribed to as a shareholder
The number of founding partners must be at least five persons or legal entities, and with a capital of at least 50,000 Turkish liras / equivalent to approximately $ 9,000, a quarter of this amount is paid before the company is registered.
Joint-stock companies can carry out any commercial or industrial activity permitted by Turkish law, except for some businesses and activities that require special permissions from the Ministry of Industry and Trade.
These companies include a board of directors and a supervisory board
Second: Solidarity Companies
This type of company is established to operate a business, under a specific trade name, and the liability of all shareholders is limited. And without a minimum required capital
All shareholders must be real people. Shareholders’ rights and obligations are determined by the articles of association
Third: Companies with unlimited liability
Licensing is often difficult for such companies; Because of its different conditions and the difference in the administrative reference entrusted with issuing it
Licensing, includes banks, private financial institutions, insurance companies, financial leasing companies, debt collection companies, holding companies, foreign exchange companies, and companies that deal with warehousing.
Fourth: Limited Liability Companies
This type of company is ideal for owners of small and medium enterprises. It consists of at least one shareholder and fifty shareholders at most, and the cost of establishing a company in Turkey of this type is very acceptable. The minimum capital of this company is 10,000 Turkish liras / equivalent to less than 2000 US dollars, but if they are two shareholders, it should be Their minimum capital is 12500 TL.
Limited liability companies are not allowed to work in the areas of banking, insurance, and currency exchange, and this company is managed by two bodies: the directors and the board of directors. The company’s shares cannot be sold or offered for subscription, and the partners are the guarantors of the public debts and the taxes imposed on the company.
The liability of the partners is limited according to the percentage of their shares in the capital contributed
Most investors and owners of small and medium enterprises prefer to establish this type of company
Here we will explain the general steps for establishing a limited liability company in Turkey
Procedures for establishing a company in Turkey
No more than one person or legal entity is required to establish a limited liability company in Turkey, and this company can be managed by foreigners (by obtaining a work permit/permit), and the ownership percentage in the company can be 100% for foreigners.
we advise anyone who wants to open a new company in Turkey to supervise its establishment by an experienced lawyer who is fluent in the language spoken by the owner of the company. We also advise hiring a trustworthy accountant to oversee the financial matters in the company being established; Because the chartered accountant is accredited by the Turkish state to represent the company before it, as his job is to receive invoices, expenses, and purchases of the company, and register them with the Turkish state departments. The presence of a chartered accountant is a prerequisite for government transactions.
Establishing a company does not require much time and effort, as a new company can be established in just one week or less.
Documents required to establish a company in Turkey
Away from the tiring “bureaucracy”, the new investor can easily obtain the papers needed for his new company, which are
-A photocopy of the passport translated into Turkish and certified by the notary, and that the validity of the passport exceeds 6 months, in addition to the presence of the entry stamp to Turkey
-Tax number document “vergi numarası” and can be extracted easily from any tax center in Turkey
-Three personal photos
Steps to establish a company in Turkey
Preparing the articles of association for the establishment of a company in Turkey, and attesting it by the notary, and it is attached to a statement of the company’s address
Deposit 25% of the value of the capital in the bank, and it is recommended that the capital be greater than the amount specified in Turkish law to take advantage of other powers obtained by large-capital companies. Turkish law treats companies in Turkey differently according to the value of the capital, so It is always recommended that the capital be at least 100 thousand Turkish liras or more, which facilitates obtaining a work permit/residence for the company’s owners and employees, and other important benefits
During the establishment of the company in Turkey, the capital is not required to be deposited in a Turkish bank, provided that this amount is deposited before applying for a work permit/residence in Turkey, or within two years from the date of incorporation.
The capital is deposited in a company’s bank account that is created, and the company obtains by the bank a deposited paper in the value of the capital, after which the company’s papers can be managed, approval from the Chamber of Commerce in Turkey, obtaining the real estate registry, and any other procedures
Submit the original copy of the company’s articles of association, in addition to two certified copies thereof, to the Commercial Registry Office within 15 days from the date of authentication and certification by the notary notary
For limited liability companies, they must comply with Article 279 of the Turkish Commercial Code
The company’s address must be clearly and explicitly stated in the articles of incorporation, and it should be noted that the company’s articles of incorporation will be publicly published in the official commercial registry newspaper.
After the company is incorporated in the commercial registry office, the company must be registered in the tax office
For a local, where the tax certificate is received, which must be displayed and placed in the workplace, the local tax officer visits the company office or the store within a few days to check the mentioned information and the tax certificate
Work permit and health insurance for workers in Turkish companies
After completing the company’s regular registration procedures according to the previous steps, the Commercial Registry Office informs the Ministry of Labor and Social Security of the establishment of the new company, and therefore all employees and employees of the company, including managers, must be registered with the “Ministry of Social Insurance.”
Social and pension insurance is compulsory in Turkey for all employees of companies, whether for managers or employees, and the company must pay insurance premiums periodically for each employee or worker in the company; Where the value of the insurance is about 750 TL per month
The company’s accountant also arranges and prepares all official papers and documents for the employees, and pays the insurance amounts, and if the insurance is not paid for any reason; All previous due amounts must be paid from the first day of the company’s incorporation (the date of appointment to the company). The company is also obligated to pay additional taxes in case of late payment of the value of the monthly insurance
Thus, we have given a general briefing on how to establish a commercial company, so that the matter is not ambiguous to the investor when starting his new project.