Close the company in Turkey

 

What does closing the company mean in Turkey? It means, deleting the company's trade name, in addition to liquidating the assets and headquarters and converting that into money that the company usually pays to pay the debts it owes or distributes the money to shareholders in the event that there are no debts on them.

 Close the company in Turkey

 There are many reasons for closing the company in Turkey. This decision may be optional, made with the approval of all shareholders, or the decision may be mandatory for reasons related to violations of Turkish law or the statute on the basis of which the company was established and operated, or it may be for other reasons. The reasons differ from one company to another.

 Reasons for closing the company in Turkey

The set of reasons that lead to the closure of the company in Turkey can be summarized in the following reasons:

  1. The company shall be closed down if it fails to fulfill all that it has said it will abide by.
  2.  To stop practicing its business for one year without providing a legitimate reason.
  3.  If the company’s losses exceed 75% of its capital, which is recorded in the contracts.
  4.  If there is no capital increase.

 

 Stages of closing companies in Turkey

  1.  The reasons for the liquidation of the company must be recorded and reported to the Commercial Registry Directorate.
  2.  The company must appoint liquidators to be responsible for the liquidation, one of them must be residing in Turkey, and the liquidator can be appointed by the company agreement or by the general meeting.
  3.  If a liquidation procedure is not specified in this Agreement, the Board of Directors will perform the liquidation.
  4. The liquidator must be registered in the commercial register and announced.
  5.  The persons concerned are notified by registered letter of the termination of the company, and this is done by issuing three announcements each week.
  6.  The concerned employees are required to inform the liquidator of the accounts receivable stipulated in the basic contract and the company's website and to publish the Turkish Business Registration.
  7.  The liquidator prepares the financial statements related to the liquidation each year and submits the final balance sheet to the conference at the end of the liquidation.
  8. After the company liquidates its debts and recovers its share price, the remaining assets will be distributed to shareholders in proportion to the paid-up capital and franchise rights, unless otherwise specified in the company's articles of association.

 Why did some people resort to closing the company in Turkey?

Companies that suffered from the economic crisis in Turkey and were hit hard during the outbreak of the new crown epidemic; Therefore, the number of companies that closed increased dramatically, and the number of newly established companies decreased, as the economic crisis and the virus epidemic led to the closure of thousands of companies, especially small companies.

 The Turkish Chamber of Commerce and the Federation of Commodity Exchanges revealed that the total number of companies that closed amounted to 15,745 companies, or 16.61%. The number of cooperative companies that closed during the same period increased by 12.67% to 11,223, resulting in the closure of 26,968 workplaces in a very short period.

 84,172 companies were established during a period in light of the Corona epidemic crisis, an increase of 22.84. In the same period of the same year, 1,261 institutions were closed, a decrease of 14.22, and cooperatives also decreased to 70, a decrease of 37.50%; And 1,745 individual companies were closed, an increase of 11.79%. During the same period, the number of individual industrial and commercial enterprises decreased.

 Company closing statistics in Turkey

In light of the slowdown in economic growth in Turkey and the depreciation of the lira, hundreds of Turkish businessmen have called for the rescheduling of corporate debt, and the Turkish government has also asked banks to consider 46 billion lira of bad debts, and provide adequate allocations for this debt.

 Statistics show that no new companies were created this year in Gümüşhane, Snob and Erdahan, Istanbul has 43.28% of companies, while Ankara has 10.85% and Izmir 5.86%. The total capital decreased by 54.43% from the previous month, and the statistics of the Federation of Chambers of Commerce showed that the capital of companies that were established in light of the current crisis fell by 54.43%

But is there any cost to the process of closing the company in Turkey, through Al-Fanar company, we will inform you in the next paragraph about the closure of the company in Turkey in detail.

 What is the cost of closing a company in Turkey

 The cost of closing a company in Turkey is always related to the type of company and the amount of debts on it, in addition to the dues that should be paid, whether the taxes incurred by the company or the cost of the chartered accountant and other matters that are on the company.

 After the process of closing the company in Turkey, the company maintains in liquidation, in addition to its relations with the shareholders, as stipulated until the completion of the liquidation, and the company can use the commercial register or its trade name in liquidation as an attachment, and this is from the date of the start of the liquidation until the completion of Liquidation, where the liquidation personnel apply to the Directorate of Commercial Registry in Turkey to delete the company's trade name from the registry, and after the deletion registration is completed, the matter is already over and the legal entity of the company is completely over.

What does commercial register mean?

The commercial registry is a file belonging to the Ministry of Commerce that includes the names of merchants as well as their places, activities and addresses anywhere within the Turkish state.

 In this record, a page is written for each merchant that includes all his information and data, through which any information about the merchant can be known if the authorities need it, and the merchant can inquire about other merchants who deal with him, in addition to the fact that banks can inquire about the merchant who deals with them.

 Whoever registers in the commercial register is considered a merchant, and whoever does not register is not considered a merchant, but the registration in this register is not considered a conclusive presumption, all companies are registered in the commercial register if their activity is civil or commercial, except for joint venture companies, which are neither written nor registered in this record; Because they are secretive companies.

 What does closing the company's tax file mean?

 If the announcement of the liquidation of the company is signed within one year, then this announcement must be submitted to the tax authorities within a period of no less than thirty days at most from the date of completion of the transactions. A period between one year and 25 months from the fourth month following the month in which the liquidation period was closed.

 Where a petition for liquidation review is made to be submitted to the tax office, to start tax inspection procedures within a maximum of three months.

The process of closing the company in Turkey includes a set of procedures and rules that must be carried out legally until the name of the company is removed from the commercial registry permanently, and in Al-Fanar we were able to provide you with information about closing the company in Turkey, and we can inform you about everything you need in the process Close the company in Turkey.