Establishing Companies in Turkey
Turkey has recently become a destination for many foreign businessmen, and establishing companies in Turkey has become one of the most important services we provide to them.
Here we will mention the most important information related to the issue of establishing companies in Turkey, which will contribute to your making the right decision.
Types of companies in Turkey
According to Turkish law, companies in Turkey are divided into 5 types, which are:
1- Shareholding company
2- The Limited Liability Company
3- Collective company
Partnership limited by shares
5- Cooperative association
It should be noted that joint-stock companies and limited liability companies are the most common in Turkey.
Where limited liability companies constitute 82% of the volume of companies in Turkey.
We move on to talk in detail about the most common types of companies in Turkey:
Shareholding Company:
It is the company which capital is divided into shares, and the liability of the partners is limited according to their contribution to the capital.
As for the share capital in the joint-stock company: the minimum capital is 50,000 TL.
Full repayment of the capital is not required, as the law permits payment of a quarter of the capital’s value with a commitment to pay the remaining amount within 24 months from the date of the company’s registration.
This type of company must have an internal system that is documented in the commercial registry.
Joint-stock companies can participate in any commercial or industrial activity within what Turkish law specifies.
Limited liability Company:
It is one of the most popular companies in Turkey due to the ease of its procedures and the low costs of establishing it.
A limited liability company can be established in Turkey with one or more partners, provided that the number of partners does not exceed 50.
The tax rate on profits is fixed for this type of company and does not exceed 22%.
As for the capital in the limited liability company: it should not be less than 10,000 Turkish lira.
A quarter of the capital can be initially repaid and the remaining amount paid within 24 months of the company’s registration.
Procedures for establishing companies in Turkey
- Preparing the company agreement and documenting the signature of the founders.
- Preparing the signatures declaration of the company officials.
- Submit the application along with the required documents to the Commercial Registry Directorate to complete the registration process.
The procedures for establishing companies in Turkey can be completed within one hour of submitting the required documents to the commercial registry offices.
Investors in Turkey are subject to the same laws as Turkish citizens.
Documents required when establishing a company in Turkey
- The articles of incorporation of the company to be signed by the founders.
- Lease contract for the company’s headquarters.
- In addition to these documents, certified copies of the personal identities and passports of the shareholders in these companies are submitted along with copies of the residence permits and tax numbers in Turkey, if available.
It must be noted here that the documents required when establishing a company in Turkey differ according to the type of company.
For a consultation on establishing companies in Turkey please contact us here.
