Establishing companies in Turkey
There is no doubt that the Turkish market is witnessing an unprecedented recovery over recent years. This made the city a source of attraction for hundreds of thousands of Arab and foreign traders and businessmen to
establish companies in Turkey to represent them and receive a substantial financial return due to the development of the Turkish economy in various fields of trade, industrial, agricultural and other. Investment in Turkey is easily made where the Turkish government is keen on attracting investors through facilitating their businesses and offering many advantages and services. Investment in Turkey has been desirable for many profitable business seekers.
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Types of companies in Turkey
– Limited Liability Companies – Joint Stock Companies
– Companies with special legislation – joint venture companies
– Limited liability companies
This type of company is typical for small and medium-sized entrepreneurs, and is required to establish a limited liability company: at least one shareholder and may be a legal person. It should be for the minimum capital of 10,000 TL, but the company is prevented from Working in the fields of banking and İnsurance. The company should be managed by two bodies, namely managers and board of directors, but the name of this company will not be presented to the public.
The capital of the company in this type of companies is divided into shares distributed to the shareholders. The responsibility of the shareholders is determined by the proportion of shares of the capital of the company in which they share. Money should not be less than 50,000 Turkish liras (approx. $ 9,000).A quarter of this amount is paid prior to the registration of the company. Ministry of Industry and Trade monitors these companies to have an executive management and a supervisory board.
– Companies with special legislation
These companies are usually difficult to license due to different conditions and different administrative reference entrusted with the issuance of the license. Those includes banks, insurance companies, financial leasing companies, debt collection companies, holding companies, companies operating in the field of foreign exchange, offices in addition to companies dealing with storage in warehouses.
– Joint venture companies
This company is established to operate a business under a certain commercial name, and the responsibility is from the shareholders, there is no minimum capital required and all shareholders must be real persons, and the rights and obligations of the shareholders are determined by statute.
Paperwork required to establish companies in Turkey:
– A photocopy of the passport translated into Turkish and authenticated by the noter and must be valid for more than six months.
– Security approval that allows the investor to establish the company in Turkey.
– Tax number, extracted from any tax centers in Turkey.
Steps to start a business in Turkey
– Determine the company’s office
The prerequisite for establishing a company in Turkey is to have an official headquarters, i.e. that the owner of the company rent or purchase an office. The price of the office or the rent vary depending on the area where the owners of the company and financiers want to set up their company. Leasing requires additional costs such as insurance and real estate office.
– The company’s capital
the capital is the most important factor when establishing a company, the law in Turkey stipulates that the minimum capital is 10,000 TL, but this amount does not allow any powers to the owner of the company, as Turkish law treats the company according to the proportion of its capital, and the reform preferably The minimum capital is TRY 100,000 , so that the founder can obtain the following powers:
– Obtain a work permit and establish work for the owners of the company and its employees.
– The possibility of joining the company in Turkey to Turkish trade organizations and associations.
– The possibility of making large contracts and facilitating the import or export of goods to Turkey.
– Preparation of the company’s establishment contract in Turkey In order to sign the Memorandum of Association, the following
shall be required:
1- Chartered Accountant
Must be certified by the Turkish state, where the main task of representing the company in front of the state. His job is different than the internal accountant of the company, where the legal accountant at the end of each month to receive invoices, expenses and purchases of the company and then register them with the Turkish state departments. The absence of Chartered accountant for the company is considered an offense that may lead to the closure of the company.
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2 – The books of the company
It is the books that record all the company’s accounts in Turkey, and are delivered to the competent state departments periodically at the end of each year, where the cost of these books annually about 1100 TL.
– Extract the tax number of the company
After the completion of the incorporation of the company and ratification and completion of all necessary procedures, you have to go to the Tax Department in order to register the company in Turkey and obtain a tax number for the company, where the company in Turkey is a legal entity and has a tax number, and taxes in Turkey are paid quarterly, and other types could be paid Annually, in addition to the average rental taxes totaling between 1500 – 3000 TL.
– Opening a bank account for the company
The capital is deposited in the bank and the company receives from the bank deposit paper for the amount of the amount deposited. Then the director of the company, with the help of the intermediary company, İs responsible for the management of his company’s papers. He can obtain the approval of the Chamber of Commerce in Turkey to establish the company and any other actions.
– Approval of signing the Memorandum of Association
After the completion of all the previous stages, the role of the director of the company is in the approval of the signature. He is appointed as a commissioner to sign on behalf of his company.
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By the End .. After the completion of all the previous phases, the registration of your company is approved by the Turkish State.