Conditions for establishing companies in Turkey

 

The conditions for establishing companies in Turkey are part of establishing a business in Turkish law. The foreign direct investment law in Turkey is based on the principle of equal treatment between groups, whether they are citizens or not, allowing international investors to have the same rights and responsibilities as local investors. So, what are the conditions for establishing companies in Turkey?

What are the conditions for establishing companies in Turkey

The answer to the question of what are the conditions for establishing companies in Turkey is determined by the type of company itself, as there are types of companies, and they are three types as follows:

Conditions for establishing sole proprietorships in Turkey

Among the conditions for establishing companies in Turkey with regard to sole proprietorship companies in Turkey, which are companies established within a legal framework, one person can establish them or several other people can become partners in sole proprietorship companies, and for this type of company there are conditions of incorporation, namely:

  • Submit the required papers at the Commercial Registry Office.
  • Issuance and delivery of the tax certificate.
  • Availability of ten thousand pounds as a minimum capital.

Conditions for establishing limited companies in Turkey

As for the conditions for establishing companies in Turkey regarding the limited company, which is one of the types of companies that can be established with a capital of not less than 10,000 Turkish liras and at least one partner and up to 50 partners, and the conditions for its establishment are as follows:

  1. The trade name must be related to the subject matter of the business.
  2. A LTD or a limited company can be incorporated in Turkey for any activity other than banking, finance and insurance.  
  3. Fulfilling the requirement to declare the directors’ signature.
  4. Provide proof of the founders' signature declaration.
  5. Fill out the Notice of Incorporation form.
  6. Submit a petition or request.
  7. Submit incorporation documents that include the company agreement.
  8. Chamber of Commerce registration statement.

Conditions for establishing joint stock companies in Turkey

In view of the conditions for establishing companies in Turkey regarding the joint stock company, which is a type of company whose partners have a trade name and capital divided into certain shares responsible for the company’s debts, which are limited to its assets and the share of capital that they have committed, and these are the conditions for establishing joint stock companies in Turkey:

  1. A joint stock company must be established with a capital of at least 50,000 TL.
  2. That the shareholders’ liability towards the company’s creditors is equal to the capital invested.
  3. Delivery of a bank letter approximately a quarter of the capital is blocked by the bank.
  4. Determine the company's trade name.
  5.  The trade name must be authenticated and the signatures of the authorized signatories notarized.
  6.  Depositing 4% of the capital into the account of the Competition Authority.
  7.  Register 3 copies of the company’s articles of incorporation with the approved commercial registry office within two weeks and submit the notarized signature statement.
  8.  Submit the registration declaration to the Commercial Registry Office.
  9.  Submitting the undertaking to be prepared in accordance with Article 29 of the Commercial Registry Regulations to the Commercial Registry Office.
  10. If the founders are real persons, the certified copy of the identity card and residency document must be submitted to the Trade Registry Office.
  11. Submit a company incorporation application form to the Commercial Registry Office for Social Insurance and Tax Registration.
  12. To register with the approved Chamber of Commerce or Chamber of Commerce and Industry.
  13. Publication of the advertisement stating that the trade name has been registered in the Official Gazette of the Turkish Commercial Registry.

Procedures for establishing an export company in Turkey

First of all, entrepreneurs who want to set up an import and export company do not face bureaucratic obstacles and can easily carry out such activities in Turkey, therefore, everything can be done easier and faster or with the help of expert offices.

The incorporation paths that the company engaged in import and export activities will follow are not different from the paths followed when establishing any company, as long as the conditions for establishing companies in Turkey are met. These are the procedures for establishing an export company in Turkey:

  1. First, the type of company to be incorporated must be determined.
  2. The period for establishing an export company varies according to the type of company you are establishing, while individual companies can be established in one day, and this period is 5-6 working days on average in other types of companies.
  3. Issuance of permits and applications for each sector subject to the import process.
  4. Apply to the Tax Office at the incorporation stage, the Chamber of Commerce or Professional for Sole Proprietorship, and the Chamber of Commerce for Capital Companies. 
  5. If employees are employed, SGK applications for a workplace permit will be submitted, and permission is obtained from the municipality.
  6. Extract the necessary papers from the tax office.
  7. Obtaining the necessary papers from the Social Security Institution.
  8.  Permission from the municipality.

Benefits of establishing a company in Turkey

The above shows the conditions for establishing companies in Turkey and the following is to review the benefits of establishing a company in Turkey:

  1. The Turkish market is considered one of the most important global markets, and occupies a rank among the twenty best markets in terms of economics at the global level. The Turkish market is also characterized by a high purchasing power, which allows the investor the benefits of growth for his investment higher and faster than other international markets.
  2. Ease and ease of marketing the product or services marketing more easily than any other market, including marketing the service or product within the European Union, and obtaining the advantages of marketing in those countries.
  3. The great ease of export operations from Turkey, and the source of that ease, not only in procedures, but also in exemption from taxes for exports.
  4. In the event that the investor is a non-national and holds the nationality of another country, the investor shall obtain a work permit.
  5. The state provides investors with the right to health insurance, and free treatment, whether for the investor himself or his family as well, and this includes treatment in the state’s government hospitals, free of charge.
  6. The state provides free education for the investor's family members.
  7. The state, through the investor’s social security service, provides cash support to the investor in the event of the company’s closure or loss, provided that the company establishes fictitious companies for a period of at least two years to avoid fraud cases in order to obtain those benefits.
  8. In the case of working for a period in Turkey, the investor is entitled to a retirement pension provided by the government.
  9. Governmental and economic support from the relevant ministries such as the Ministry of Economy, in case the investment is in a Turkish product, or the presentation of exhibitions abroad representing Turkey.
  10. Obtaining the merchant's card, which is a card issued by Turkey that allows the investor to view all the state's investments, exhibitions or tenders.

Company closing in Turkey

After clarifying the most important questions from investors regarding the conditions for establishing companies in Turkey, the benefits of that, and the procedures, what if the investor wants to close the company, here the following procedures are obligatory for the investor, which are as follows:

  1. The company cannot be closed without explaining the reason for the closure, with the notification of the relevant authority of the commercial registry.
  2. Appointing those responsible for carrying out the liquidation process, provided that one of these appointees holds Turkish citizenship and resides there, and if no one is available to do so, the board of directors can carry out the liquidation process itself.
  3. The persons concerned must be notified by a registered letter, informing them of the termination of the company, by three letters sent over three separate weeks.
  4. Capital assets are distributed only after the shares have been redeemed and the debts have been paid off.

Hence, it can be said in general that the conditions for establishing companies in Turkey are easy for other countries, even with different types of companies, and investing in Turkey is the least risky compared to other countries, and the most beneficial.