Open Company In Turkey

Government laws and legislation based on the principle of reciprocity have contributed to increasing the appeal of foreign businessmen to establish a company in Turkey, attracting more international investment directly to the country.

Establishing companies in Turkey has become an easy and uncomplicated investment in terms of specific procedures and conditions by the government, which opened the way for more investment projects, thus boosting and strengthening the Turkish economy.

When you think about establishing a company in a Turkish city, you need to define the type of company first, then the stages of establishment and the most important required documents. To find out all about that, follow this article by Binaa Investment.

Types of companies in Turkey

Companies in Turkey are divided into two main types:

• Individual companies: a joint company, a businessmen's association, a union.
• "Incorporated" joint-stock companies, which are:

1.   Joint Stock Company in Turkey

To establish a joint-stock company, a capital of at least 50,000 Turkish liras is required to be distributed to at least five shareholders in the form of stock.

 As for the liability of the shareholders, it is limited to the paid-up capital only. The company gains respect when it is registered in the Turkish Commercial Register.

2.   Commandite Company in Turkey

It is a company that does not require minimum capital. It is set up to operate a project under a specific commercial name; the liability of its partners is limited to the paid-in fund by financiers. Whereas the shareholders' obligations are determined through the articles of association.

3.   The Limited Company in Turkey

This company is founded by at least one person or a legal entity, with 50 partners at most, and needs capital of at least 10,000 TL if its founder is one person, 12,500 liras for two.

4.   Liability partnership in Turkey

It is a commercial company established by real people. Its liability is limited to the paid-up fund only. Its rights are defined by the articles of association.

The purpose of the liability partnership is to carry out commercial activities under a specific trade name. However, it does not necessitate the minimum capital required for its establishment.

The required documents to establish a company in Turkey

After registering the information through the electronic system of the Istanbul Chamber of Commerce, the investor gets an appointment to go to the commercial registry office with the following documents:

• Power of attorney to establish a company.
• Personal tax number for partners.
• Passport translated and certified by a notary public.
• A copy of the residence card in Turkey or the form of the residence card issuance date.
• Personal Photos.
• If the foreign shareholder is a legal entity, the original copy of the activity certificate that was issued by the competent authorities and accredited by the relevant Turkish Consulate, or a notarized and translated copy shall be submitted.
• The address of the company's headquarters under a rental contract.

Stages of establishing companies in Turkey

• Preparing the company's articles of association and certifying them by the notary public, then attaching them to a document showing the company's address.
• Open a bank account for the company, whereby you will get a deposit letter showing the value of the capital.
• A bank deposit of 25% of the total value of the capital, and it should be greater than the value specified in the Turkish legislation, to facilitate the issuance of a work permit/residence permit for the company's owners and employees, and other privileges.
• Authorizing the signatures of the company's founders in the commercial registry office in Turkey.
• After taking the signatures, the original copy is submitted with two certified copies of the company's articles of association within 15 days from the date of authentication.
• When establishing limited liability or joint-stock companies the commercial books are authorized to be submitted to the responsible party after they are kept in the Turkish Commercial Register.
• Registering the company at the local tax office to receive the tax certification, which is kept at the company's headquarters.
• The local tax officer then visits the company office within a few days to verify the certification and the completion of the required information.

Could the headquarters of a company in Turkey be moved abroad or vice versa?

Yes, the founder can move the headquarters of his company located in Turkey abroad, or move the headquarters of a company established abroad to Turkish territory. To complete this procedure there are procedures that a person needs to follow, which are:

When moving the headquarters of a company from Turkey abroad

• Submitting the company's documents to the Commercial Registry Directorate while adhering to the stipulated legal procedures.
• Submitting documents that prove the company's owners' approval of changing its status and headquarters as stipulated in the company agreement.
• Registration of the company by the authority or department authorized to move the company's headquarters abroad.
• Provide written consent to all partners within the company.
• Getting a certified copy of the competent authority's decision to transfer the company's headquarters abroad.
• Submit a certified and translated copy confirming that the company's business and activities will continue outside Turkey.

When moving the headquarters of a foreign company into Turkey

• Ensure that the company's contract complies with Turkish law.
• Submitting a translated contract into the Turkish language and issued by the competent authority, stipulating the transfer of the company's headquarters from outside Turkey to inside it, in compliance with the required laws.
• Getting a document from the competent authority ensuring the conformity of the law of the company's main headquarters with the laws in Turkey.
• Submitting a translated and certified contract of the company stating the owners' agreement to transfer the company's headquarters to Turkey and that the company complies with Turkish law.
• The papers and required documents are delivered to the Directorate of Commercial Companies Registration in Turkey by the competent foreign authorities.

Consequently, we have dealt with the most crucial information related to establishing a company in Turkey and have discussed the various types of companies and the stages of their establishment in Turkey.

Contact the Binaa Investment team to guide you to the correct laws, with the help of the in-charge lawyer in our company, and provide you with proper assistance that will facilitate your work and give you comfort and safety in completing your task.

Edited by: Binaa Investment©