After determining the desired type of business in Turkey (limited liability companies, joint-stock companies, limited companies, collective companies or business partnerships), the registration process takes no more than a week.
The foreign investor must also benefit from a certain amount of capital before starting a business in Turkey; for example, the limited liability company requires a minimum share capital of TRY 10,000, while the joint-stock company must deposit at least TRY 50,000. Our lawyers in Turkey can offer you assistance with all the procedures required during the incorporation process and can also help you submit the documents to the Turkish authorities.
How to register a new company in Turkey
- Foreign entrepreneurs who wish to open businesses in Turkey must complete a few steps before starting to operate. These steps consist of
- Choose the type of company they wish to establish and have the incorporation documents drawn up and notarized in accordance with the Companies Act;
- Open the bank account of the company and deposit the share capital required by law;
- Appoint the directors or managers of the company, in accordance with the legislation;
- File the documents of incorporation and the details of the shareholders and managers with the commercial register;
- Obtain tax and VAT identification numbers, as well as social security registration from the tax office.
Documents needed to open a company in Turkey
One of the most important steps to set up a company in Turkey is the preparation of the necessary documents for the registration of the company with the commercial register. The main set of documents to be drawn up and authenticated is the company’s articles of association, which must contain all the details of the shareholders – their name, place of residence, contribution to the company’s share capital and number of shareholders. shares they hold in the company. The articles of association should also contain information about the officers of the company, including their names, how they are appointed and can be removed, and their duties and obligations.
The same document must clearly indicate the trade name of the Turkish company, its address in this country and a description of the purpose of the activity. The articles of association may also contain other clauses, relating to the changes that can be made to the company and the methods of resolving disputes if problems arise between the shareholders. It is very important that the articles of association be drawn up in accordance with the provisions of the commercial code. If you are a foreign entrepreneur and want to open a company in this country, our law firm in Turkey can help you prepare these documents.
An important aspect to take into account is that in the case of the creation of a sole proprietorship, a simple application form must be filed with the commercial register. In the case of partnerships, which in Turkey are known as limited partnerships, the partnership deed is the basis for their establishment.
Shareholders of a company in Turkey
The shareholders are the founders of the company, or better said the owners of the company. They can be individuals or companies and they have various rights, but also duties in society. The minimum number of shareholders a Turkish company can have is one in both private and public companies. They may be Turkish citizens or residents; however, foreigners can also act as sole shareholders when opening a company in this country.
One of the main responsibilities of shareholders is to contribute to the share capital of the company. Depending on their contributions, they acquire more or less rights in society. The biggest benefit to shareholders is that their liability for the debts and other obligations of the company will be limited to the amount they have invested in the company in the case of LLCs. In the case of partnerships, the role of shareholders is supplemented by that of partners or members.
Business Management in Turkey
One of the most important roles in a Turkish company is performed by the directors of the company. Shareholders are required to appoint at least one company director in the case of a private company. A board of directors must ensure the management of a public company in Turkey. For the same type of company, at least one auditor must be appointed. In the case of private companies, the auditor will be independent and will only be called upon when the company’s financial documents need to be audited. It should be noted that, regardless of the type of company, at least one of the shareholders must be a director of the company. The role of manager can also be fulfilled by another company provided that it appoints a natural person as the representative of the company.
The business name and legal address when opening a company in Turkey
The first step to registering a business in Turkey is finding a suitable business name for the business. The name must be unique and must not be offensive. For the name of the company to be unique, the applicant can request the validation of 3 different names, among which he will choose the one that is appropriate according to the needs of the company. We remind investors that branches must bear the same name as the parent company. Another important requirement for the company to be considered a Turkish resident company is that it has a local address. The registered address must be in the city where the company will operate. To this end, we can help you by offering virtual office services.
