Company licensing in Turkey

 

 

 

In our article today, we discuss how to license a company in Turkey, as Turkey has recently witnessed a boom in its economic growth worldwide, so it has become a safe environment for many investors looking to invest in Turkey and establish companies, where the process of establishing a business in Turkey can be completed in Within one hour of submitting the required documents related to the commercial registry offices, international natural and legal entities are subject to the same laws as domestic investors to establish companies in Turkey.

Company licensing papers in Turkey

 

• Agency for establishing a company to be prepared by a notary public to authorize it to establish the company.

• Passport translated and certified by a notary public.

• A personal tax number for the partners to be extracted.

• A copy of the residence card in Turkey or the form of the date of issuance of a residence card.

• A personal photograph.

• If the foreign shareholder (foreign shareholders) is a legal entity, the original copy of the activity certificate that was issued by the competent authorities and approved by the relevant Turkish Consulate or a notarized copy shall be submitted along with a certified translation thereof.

• The address of the company's headquarters under a lease contract or a lease contract for a virtual headquarters.

 

Procedures for licensing a company in Turkey

 

To obtain a company license in Turkey, know the following:

 

• Examination of the company's foundation papers by a notary public and adding them to a statement of the company's title as a first step in the way to establish a company in Turkey.

• It is proposed that the capital, by depositing 25% of the value of the capital in the fund, be greater than the amount mentioned in Turkish law in order to use other powers acquired by large-capital companies, as Turkish law modifies their relations with companies in Turkey, and often It is recommended that the capital be at least 100,000 TL or more, based on the size of the capital, facilitating a work/residence permit for company owners and employees and other essential benefits.

• It is not appropriate to invest money in a Turkish bank during the company's incorporation period, provided that the amount is invested before applying for a work/residence permit, or within two years from the date of incorporation.

• The money is deposited in the bank account of the formed company and the company obtains a deposit paper with the value of the capital from the bank, after which it can deal with the company's records, the approval of the Chamber of Commerce in Turkey, the land registry and other procedures issued.

• In the method of licensing a company in Turkey, an original copy of the company's papers is delivered to the Commercial Registry Office, in addition to two certified copies, within 15 days from the date of certification by a notary public.

• The company's address must be explicitly mentioned in the memorandum of association, and it should be remembered that the company's incorporation scheme will be publicly reported in the official commercial registry newspaper.

• Once the company is formed at the company's registry office, the company must be registered at the local tax office where the tax certificate was issued, and it should be displayed and prominently placed in the workplace where the local tax officer will visit the company's office or premises within a few days to check the correctness of the details and the indicated tax certificate to her.

 

Types of companies in Turkey

 

The legal facilities provided by Turkey to those wishing to establish and license a company in Turkey have made investing in Turkey a distinct and desirable thing for foreign investors to establish profitable businesses, and the Turkish government’s keenness to attract commercial and economic activities by facilitating investors’ affairs, and providing features and services Many is also what distinguishes it from other countries. We will mention to you the types of companies in Turkey because each type of company has different characteristics from the other.

 

1- Recommendation companies in Turkey

 

It is a company established to operate a business under a specific trade name. Since the liability of some shareholders is limited to the capital subscribed and paid by the shareholders (financiers), there are no limits on liability for some shareholders. Only legal entities are funded. There is no minimum required capital. Shareholders' rights and obligations are determined by the articles of association

 

 

2- Joint stock companies

In this type of company, the company’s capital is divided into shares distributed among the shareholders, and only one person can establish this company, according to important determinants, the most prominent of which are:

  • Opening a bank account on behalf of the company to deposit the capital and perform all banking transactions through this account.
  • The minimum share capital of the company must be mandatory when establishing the company, because this capital reflects the nominal values ​​offered by the company.
  • The law does not require the investment of the entire capital, but a quarter of the amount can be paid after incorporation, and the rest of the capital is deposited within 24 months.
  • The company consists of a group of administrative bodies authorized to supervise the company's business and activities

 

The number of founding partners must be at least five persons or legal entities, with a capital of at least 50,000 Turkish liras, and 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, with the exception of some businesses and activities that require special permissions from the Ministry of Industry and Trade.

 

3- Limited liability companies

 

This type of company in Turkey 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 simple, the minimum capital of this company is 10,000 Turkish liras, but if they are two shareholders, the limit must be The minimum capital for them is 12500 TL. This company is managed by two bodies: the directors and the board of directors. It is also considered one of the companies in which the tax is set at 22%. The tax statements are issued an announcement for each quarter of the year and for the entire year, and do not need a tax declaration for each partner. The company’s shares cannot be sold or offered for subscription, and the partners are the guarantors of public debts and taxes imposed on the company.

 

Turkish law does not allow limited liability companies to engage in banking, insurance and currency exchange.

 

 

 

4- Solidarity Company in Turkey

 

It is a company that is established to operate a business under a specific commercial name, and the partners are responsible for the debts themselves

Income tax is variable and has no fixed value between 15% and 35% and there is no minimum required capital. All shareholders are required to be real persons. Shareholders' rights and obligations are determined through the articles of association.

 

Documents required to register a limited liability company

 

• Completion of the signing of the corporate deal by the owners.

Written representations by non-affiliated board representatives that they acknowledge this responsibility

• In the case of a legal person in the committee, the name and surname of the actual person shall be mentioned from the legal person's point of view.

• Acceptance of the legal person and the recorded version of the decision of the responsible authority to identify the legal person on behalf of the legal person.

• A court-appointed consultant has prepared appraisal reports on the value of real property.

• Properties to be confiscated, if any, after incorporation.

• If the in-kind capital is added, the record that will be taken from the relevant registry shows that the in-kind capital is unlimited.

• In the case of the in-kind capital situation, the text states that the documents in which they are documented specify intellectual property rights, immovable property and other characteristics imposed as in-kind capital.

• Contracts concluded with the establishment of a company, its owners and other individuals, including contracts related to acquisitions.

• Signing corporate officials' announcements

• Evidence of depositing an amount of shares from the Anti-competition Authority, proving their deposit.