How to Establish a Company in Turkey ?

• Company Establishment in Turkey

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The Turkish Foreign Direct Investment Law is built on the idea of fair opportunities that allow
international investors to enjoy the same rights and obligations as domestic investors.
The same rules apply to foreigners who establish companies or businesses and transfer shares as
they apply to domestic investors. International investors can establish any of the companies listed in
the Turkish Commercial Code (TTK), which meets international standards, supports private equity
and public offerings, ensures operational transparency, and creates a corporate governance
framework that aligns the Turkish business environment with European regulations.

Turkey has taken measures to facilitate doing business in order to improve the investment
environment by eliminating bureaucracy and reducing costs and processes in establishing a
company.

As a result, establishing a company in Turkey is currently done only through the Trade Registry
Offices, which are located in the Chambers of Commerce and which should be the center of trade.

What are the Types of Companies and Alternative Forms within the Scope of the TCC?

According to the TCC, companies can be formed in two ways: corporate and non-institutional.
What are Institutional Forms?

Joint Stock Company (A.Ş.),
Limited Liability Company (Limited Company, LTD. ŞTİ.).

The processes for forming a JSC or LLC are the same, although some financial requirements (such as
minimum capital) and divisions vary.

What Are Non-Institutional Forms?

• General Partnership,
• limited partnership,
• Limited Partnership by Shares.

Although these five different types of companies are formed, Joint Stock and Limited Company types
are the most common both in the world economy and in Turkey.

How to Establish a Company in Turkey?

The registration procedure takes no more than a week after determining the form of the company.

The foreign investor must have a certain amount of money before establishing a company in Turkey;
For example, a Limited Company must have a minimum capital of ₺10,000, while a Joint Stock
Company must have a minimum deposit of ₺50,000.

Our English-speaking Turkish lawyers can assist you in all processes involved in the establishment
process and forward the documents to the relevant Turkish authorities.

In addition, our native language-speaking translators are at your service.

Deciding on the Location of the Company Headquarters is the First Step
According to Turkish law, a company must have a head office in Turkey in order to be legally
established in the country.

There are two options for establishing a company in Turkey: virtual or
physical center:
The first option is to choose a location that is already owned by the company.

There is also a rental
option.

lease a property; it will cost you some money monthly, plus extra costs like commissions and
other fees.

The second alternative is to get a virtual office for your company, which is not a physical location but
a perfectly legal address.

The Company’s Equity Funds Are The Second Step On The List
The primary aspect of firm capital is to act in accordance with Turkish legislation.

The minimum
capital required to establish a company in Turkey is LTD. STI. for ₺10.000 and A.Ş. for ₺50,000.

This amount of funds will not give you any independence as Turkish legislation treats companies
according to their capital values.

As a result, if your company’s capital is set at ₺100,000, you will be
able to:
It will be easier for you to get a work permit (or residence visa) in Turkey.
You will be able to trade comfortably or export & import goods.

During the establishment of the company, the investment does not need to be deposited in a bank;
instead, it must be deposited before the work permit application is made or within 24 months from
the date of establishment.

What are the Other Main Steps of Establishing a Company in Turkey?
Job Preparation: Selecting and preparing the job structure.

Considerations: Preparation of necessary documents.

Mandatory Requirements: Application for required licenses and permits.
Taxes: Registration for tax purposes.
Preparing for Work: Obtaining the company seal.
What is the Procedure for Establishing a New Company in Turkey?
Foreign entrepreneurs who want to establish a company in Turkey must complete a few processes
before starting a business. These stages are as follows:
Deciding on the type of company they choose to establish and having the necessary documents
written and notarized according to the Companies Law.
Establishing a company bank account and depositing the legal minimum capital.
To designate the directors or management of the company in accordance with the law.
Submitting the Articles of Association and the names and addresses of the partners and managers to
the Trade Registry.
Obtaining TAX and VAT numbers and registering with the tax office for social security reasons.
What are the Documents Required to Establish a Company in Turkey?
The preparation of the necessary documents for the Trade Registry Office is one of the most
important procedures for establishing a company in Turkey.
The Articles of Association is the most important document that must be prepared and notarized. It
should include all information about the shareholders, including their identity, address, contribution
to the company’s capital, and the number of shares they hold.
In the Articles of Association, also; Information about the management of the company, such as their
names, how they were elected and dismissed, their obligations and responsibilities, should also be
included.

The company’s trade name, location in Turkey and business summary should be properly stated in
the same documents. Other parts of the Articles of Association may relate to changes that can be
made to the company and to dispute resolution processes in case of difficulties among shareholders.
The crucial point here is that a simple application form must be submitted to the Trade Registry
when establishing a sole proprietorship. The partnership deed is at the center of establishing
partnerships, known as limited partnerships in Turkey.
Who Are the Partners of a Company Established in Turkey?
Shareholders are the founders or, in other words, the owners of the company. These can be
individuals or businesses and have various rights and responsibilities within the firm.
The number of shares of a firm is one in both private and public institutions. These can be Turkish
citizens or residents. However, foreigners can also function as sole partners when establishing a
company in Turkey.

One of the primary obligations of shareholders is to contribute to the capital of the company.
Depending on their contribution, they will receive more or less rights in the firm.
The biggest benefit to shareholders is that, in the case of Limited Liability Companies, their liability
for the debts and other obligations of the business is limited to the amount of money they have
invested in the company. The position of shareholders is filled by the partners or members in the
case of partnership.

In this section we will try to answer some of your questions.
What is the Cost of Establishing a Company in Turkey?
The cost of establishing a company in Turkey is low. Still, the owner must include company
registration costs, notary fees, and the commission from the Turkish law firm (if appointed)
managing the process.

Should You Use a Company Incorporation Representative?
An increasing number of start-up agents are advertising their services in local newspapers, and most
can be found in the city centre. Many expats choose this route as it saves time and effort to find an
authorized agent.
If you’re considering hiring one, do some research beforehand and see what other expatriate
businesses they’ve helped set up. Some of these businesses, as with everything else, are vastly
superior to others.

How Long Does It Take to Establish a Company in Turkey?
It takes about three weeks to set up a company in Turkey. In the case of a branch, the process takes
longer. If you want additional advice on the processes followed by the Turkish authorities when
establishing a company in Turkey, Contact us and let’s start our work on the process

CONTACT US : https://www.invopa.com