Fanar Realty | Types of companies in Turkey

Types of companies in Turkey

Investing in Turkey

The purpose of the changes made to the Turkish foreign investment regulations in June 2003

We summarize some important points which are the promotion of real persons and legal entities.

That is, encourage the resident abroad to invest in Turkey, participate in commercial activities, and participate in the establishment of companies.

Buying shares, opening branch offices and establishing liaison offices.

According to the Turkish foreign investment regulations, foreign investors enjoy the same rights as Turkish investors, that is, Turkish citizens

and Turkish legal entities, except for the establishment of liaison offices subject to the approval of the Undersecretary of the Treasury.

A company that has a legal entity with foreign capital in Turkey has the same rights to own land or use it as local investors.

However, foreign real persons may acquire real estate in accordance with the principles of international law.

Foreign Direct Investment Law in Turkey

Register a company in Turkey

It is based on the principle of equal treatment, allowing international investors the same rights and obligations as local investors, and the conditions for setting up a business and transferring shares are the same as for local investors.

International investors may set up any form of company stipulated in the Turkish Commercial Code, which offers an approach to corporate governance that meets international standards, promotes private equity and public offering activities, creates transparency in managing operations and harmonizes the Turkish business environment with EU legislation as well as with the accession process. to the European Union.

Turkey has introduced reforms with the aim of facilitating the conduct of business in order to enhance the investment environment, eliminate red tape in setting up a business and reduce costs and procedures to a minimum. To this end, a company is now only established in the commercial registry offices located in the Chambers of Commerce and designed to be a “one-stop shop”. The process is completed within the same day.

Types of company registration in Turkey:

Like the laws followed to establish a company in each country, there are several types of companies in Turkey, and each company, its law and conditions are explained below:

A limited liability company

This type of company must be registered and established with a minimum of one person and a maximum of 55 people, and the fees required for registration and establishment of a limited liability company are $2100 (two accounts are opened in foreign currency, one in the name of the company and the other in the name of the company manager) and according to the rules, profit and loss are approved Each shareholder, based on the amount of the share of this real or legal person, and in the event of the company's bankruptcy, the creditor may claim only the amount of the company's shares and no more.

Although the directors of this type of company can be Turkish citizens, foreign citizens, and even according to the company's articles of association, people who are not shareholders of the company.

Limited companies have two machines

General Assembly

As a rule, this body is exclusively empowered to take certain tasks such as decisions related to the company (change of company contract, selection of directors, selection of auditor, termination of company ... etc.)

Where all shareholders are represented

Director/Board of Directors

It is the body primarily responsible for the management and representation of the company.

It is possible that the company has only one director at least and one of the directors must be a partner in the company.

There is no requirement that directors be Turkish citizens; To be residing in Turkey

Institutions:

We have two types of joint stock companies in Turkey, companies with less than 250 investors, and it is called a private joint stock company, and the cost of its establishment and registration is about 2,800 US dollars, as well as companies that have more than 250 US dollars.

Investors, they are called public joint stock companies, the shares in joint stock companies are equal, but each shareholder can buy as many shares as possible, and the amount of profit and loss for each shareholder is calculated according to the amount of these shares, and according to Turkish law, representatives of the Ministry of Commerce must attend the general meeting for this company.

Establishment of mixed companies:

In this type of company, one or more shareholders (excluding real persons) bear the debts of the company, while the remaining shareholders bear only the amount of their initial capital.

Partnership:

There is an important point in establishing this type of company, which is that in the event of debts to this company, each partner is responsible and obligated to pay them, even if the amount of these debts is greater than the total, that is, the capital and the value of the company.

Financial Institutions (Exchange):

This type of economic project is considered a joint stock company, with the difference that in order to register and establish it, the necessary licenses must be obtained from the competent authorities. The registration of this type of company faces difficulties and complications that require speaking to a lawyer with experience in this field.

Participation in Turkish Free Zones:

It must be said that this type of company establishment is intended for those who produce goods, in fact what is considered an industrial activity, that is, you can buy land in the areas offered to you at a reasonable price with appropriate facilities, and it is beneficial for the Turkish government to build a shed in that area, and it is interesting Knowing that Turkey provides you with exceptional facilities for hiring employees and workers in this field, including insurance and tax exemptions.

Company formation in Turkey

• A group of no less than five shareholders can be created

• It can be formed with a minimum capital of 50,000 LBP; Foreign investors are required to achieve the minimum required capital for Turkish citizens according to the Turkish Commercial Law.

Dividing its capital into shares, and the liability of each shareholder is limited to a value equal to the capital of his shares and the amount he has contributed against the unpaid public debts.

• It can practice any type of commercial and industrial activity permitted by Turkish laws. Some companies may need permission from the Ministry of Industry and Trade.

What is the capital required to register a company in Turkey?

The registered capital of the LLC must not be less than 10,000 Turkish Liras.

The share capital of the anonymous company must not be less than 50,000 TL.

However, there is no set minimum share capital required to establish a collective limited partnership.

What are the steps for establishing a company in Turkey?

Steps are required to incorporate a legal entity in Turkey

After detailing and signing the Memorandum of Association, this document must be notarized along with the signature declaration for the directors and business books of the entity.

0.04% of the capital must be deposited with the Competition Authority and the minimum share capital must be deposited in the bank which will issue the paid-in capital certificate.

Next, the applicant must visit the Trade Registry Office and submit the Notice of Incorporation Form, Letter of Commitment and Chamber Registration Statement.

The legal books of the company must be notarized followed by the last step, registration for specific taxes with the Turkish Tax Office and Social Security Administration (performed by the Commercial Registry but under the supervision of the company)

Cities in which companies were established and their number in Turkey 2020: